Posted On: January 1, 2007, 3:02 pm CST

Posted By: get real

I didn't say you don't know how to write profitable insurance I said you don't know how to price it. There is a big difference!

I am sure you are a good agent. You just can't price based on predicting future losses. Yes someone with no losses and bad credit should pay more because they fit into a group that we can predict will have more losses that is exactly what pricing based on future loss potential is all about. What about the clean driver that lives in Brooklyn for 30 years with no losses? Why do they pay more than the clean driver that lives in rural NY State that has been clean for 30 years? Or better yet. Why do they pay more than the driver with 1 or maybe even 2 accidents in the past 5 years? Because they live in Brooklyn and even though they have been clean for 30 years they are in an area that is more likely to cost more and have more losses. It is the same thing. You just don't like that you can't hold it in your hand and look at it. Credit works! It may go away but we will be worse off for it.

Look at PRG they don't just do it by paying low commissions. Their ability to grow isn't because they pay 10% and everyone else pays 15% it is a variety of things but first and foremost it is because of their sophisticated pricing model. They must be able to offer more people lower prices by using credit or they wouldn't do it.

Sorry you are so resistant to progress and change.