One of the issues with the respondents is people purchasing insurance from the company sponsoring this poll – “Insurancequotes.com” – they buy their homeowners insurance from an electronic vending machine like it’s a pack of chewing gum, and then they are dumbfounded when the carrier’s claim informs them their cheap insurance has a 2% wind deductible or doesn’t include replacement cost on contents.
Nah, even the ones who use an agent don’t get it. Plus, at least 21% of those polled use an agent since that many said their choice was based on the service by their agent.
Low information insurance consumers are most likely low information voters as well. They expect someone else to take care of them and get everything for free.
Second Paul’s comment and also second Libby and Jack. While the buyers of personal and commercial insurance are woefully ignorant of the insurances they purchase, the seller’s of insurance are equally culpable. The sell and move on to the next prospect theory and practice is dangerous at best and will continue as long as those who sell are paid on a commission basis. Good thing lawyers, accoutnants and physicians are not paid on a commission basise.
Most of us agents out there endeavor to sell excellent coverage to a client and update exposures when we can. We also are smart enough to have rejections of coverage signed off on by the customer if they don’t want some of the coverages proposed. Agents who just sell and move on have the highest E&O premiums because they don’t document their files and don’t have a leg to stand on if a claim erupts and no coverage is available. When was the last time you saw a lawyer, accountant or physician? You can’t shake hands with them without a bill for their services. Agents are paid a relatively small commission for our work and we do a lot of things for the customer providing advice and don’t get paid for it. In fact, I have had people ask me insurance questions on their Home & Auto and they were buying from someone else. After a couple of times, I tell them to ask their agent.
Lawyers and accountants are paid by the hour (or quarter hour or in whatever interval they want) which tends to expand the time needed to do the work, and most docs are paid by a third party who has no real interest in the outcome, only in keeping costs down. How are these better than a commission?
There are many inequalities in services and professions. What a person’s time is worth is subjective: the market says you’re worth as much as a person willingly pays you, the nanny state says you’re worth as much as we allow you to charge.
I’d like to see commissions outlawed in insurance in favor of agents/brokers being allowed to set and charge pre disclosed non refundable fees. I trust insurers to set their prices, not mine! Insurers don’t generally value agents, they just haven’t figured out how to get rid of us yet. They consider commissions an expense item to cut as they please. We are forced to live on what little they choose to give us unless we are the larger agents who fortunately qualify for the bonus commissions that make them so profitable. The big pay too much and subsidize the smallest policy holders who pay too little.
The beauty of fees is you set your own, you stand behind earning them, and you don’t owe any insurance company anything but your fair dealing.
And no I’m not holding my breath.
I also believe most lawyers, docs, and CPAs etc. earn their money. I don’t agree with them all the time either.
It’s up to the insurance industry to build our value as independent agents and we’re letting the direct writers and the e-sellers outmarket us. Start a blog; inform your public; use social media; speak at your local rotary; read Guerrilla Marketing. Do something,even if it’s wrong.
To paraphrase the old Family Feud’s dearly departed host Richard Dawson – “Survey says”
1> Most State Insurance Depts. don’t have the guts or brains to
require a simple facesheet coverage checklist.
2> Most insurers will give you two of what they think you’ll never
use, but refuse to even sell you what they know you really need.
3> Most so called Consumer Advocates don’t speak for any consumers
I know, and they suck money from the system without raising
their operating funds the way the rest of us have to.
4> Most insurer do a overwhelming good service, but that is no
excuse for the times they foul up, or refuse to admit it!
5> Most agents actually care about their clients well being, but a
large enough percentage don’t to give us all a bad name.
6> lawyers write almost all insurance contracts, so when people
reply to surveys not knowing what’s covered, no one should be
even a little bit surprised to read it!
7> Agents can go over it all repeatedly, and state required forms
can be included to explain it in required wording, and nothing
will force a consumer to remember any of it until it becomes the
subject of a $1M TV game show give-a-way!
I can’t believe you are in the insurance industry Daviv. Read your Tenants policy. A structure owned by someone else does not include your Personal Property.
One of the issues with the respondents is people purchasing insurance from the company sponsoring this poll – “Insurancequotes.com” – they buy their homeowners insurance from an electronic vending machine like it’s a pack of chewing gum, and then they are dumbfounded when the carrier’s claim informs them their cheap insurance has a 2% wind deductible or doesn’t include replacement cost on contents.
Nah, even the ones who use an agent don’t get it. Plus, at least 21% of those polled use an agent since that many said their choice was based on the service by their agent.
75% of the agents serving that 21% don’t know what the heck they sold their clients!
That’s sad, but true Jack…
Low information insurance consumers are most likely low information voters as well. They expect someone else to take care of them and get everything for free.
I love it when people shop the cheapest price but they expect the best coverage. Meow.
Second Paul’s comment and also second Libby and Jack. While the buyers of personal and commercial insurance are woefully ignorant of the insurances they purchase, the seller’s of insurance are equally culpable. The sell and move on to the next prospect theory and practice is dangerous at best and will continue as long as those who sell are paid on a commission basis. Good thing lawyers, accoutnants and physicians are not paid on a commission basise.
Most of us agents out there endeavor to sell excellent coverage to a client and update exposures when we can. We also are smart enough to have rejections of coverage signed off on by the customer if they don’t want some of the coverages proposed. Agents who just sell and move on have the highest E&O premiums because they don’t document their files and don’t have a leg to stand on if a claim erupts and no coverage is available. When was the last time you saw a lawyer, accountant or physician? You can’t shake hands with them without a bill for their services. Agents are paid a relatively small commission for our work and we do a lot of things for the customer providing advice and don’t get paid for it. In fact, I have had people ask me insurance questions on their Home & Auto and they were buying from someone else. After a couple of times, I tell them to ask their agent.
Lawyers and accountants are paid by the hour (or quarter hour or in whatever interval they want) which tends to expand the time needed to do the work, and most docs are paid by a third party who has no real interest in the outcome, only in keeping costs down. How are these better than a commission?
There are many inequalities in services and professions. What a person’s time is worth is subjective: the market says you’re worth as much as a person willingly pays you, the nanny state says you’re worth as much as we allow you to charge.
I’d like to see commissions outlawed in insurance in favor of agents/brokers being allowed to set and charge pre disclosed non refundable fees. I trust insurers to set their prices, not mine! Insurers don’t generally value agents, they just haven’t figured out how to get rid of us yet. They consider commissions an expense item to cut as they please. We are forced to live on what little they choose to give us unless we are the larger agents who fortunately qualify for the bonus commissions that make them so profitable. The big pay too much and subsidize the smallest policy holders who pay too little.
The beauty of fees is you set your own, you stand behind earning them, and you don’t owe any insurance company anything but your fair dealing.
And no I’m not holding my breath.
I also believe most lawyers, docs, and CPAs etc. earn their money. I don’t agree with them all the time either.
It’s up to the insurance industry to build our value as independent agents and we’re letting the direct writers and the e-sellers outmarket us. Start a blog; inform your public; use social media; speak at your local rotary; read Guerrilla Marketing. Do something,even if it’s wrong.
To paraphrase the old Family Feud’s dearly departed host Richard Dawson – “Survey says”
1> Most State Insurance Depts. don’t have the guts or brains to
require a simple facesheet coverage checklist.
2> Most insurers will give you two of what they think you’ll never
use, but refuse to even sell you what they know you really need.
3> Most so called Consumer Advocates don’t speak for any consumers
I know, and they suck money from the system without raising
their operating funds the way the rest of us have to.
4> Most insurer do a overwhelming good service, but that is no
excuse for the times they foul up, or refuse to admit it!
5> Most agents actually care about their clients well being, but a
large enough percentage don’t to give us all a bad name.
6> lawyers write almost all insurance contracts, so when people
reply to surveys not knowing what’s covered, no one should be
even a little bit surprised to read it!
7> Agents can go over it all repeatedly, and state required forms
can be included to explain it in required wording, and nothing
will force a consumer to remember any of it until it becomes the
subject of a $1M TV game show give-a-way!
As Bobby McPherin said – “Don’t worry, be happy!
I live in an apartment block could you please advise me whether or not external doors and windows are covered by my contents insurance policy.
I can’t believe you are in the insurance industry Daviv. Read your Tenants policy. A structure owned by someone else does not include your Personal Property.