They may use up that initial $13 million on salaries of these guys. I am not sure I would trust anyone formerly with AIG since they have such a poor track record.
The main two ways to compete in the insurance business is business is through superior service and superior price. I don’t see how this strategy does either unless it somehow leads to an ill-informed superior price which will ultimately end them.
Is there a test to see if someone is just in mid-life versus having a mid-life crisis? Does this mean you’ll retire from being an Agent when you hit your mid-life crisis?
Although that wouldn’t bother me Agent, and I don’t want to feed into Confused’s post, but s/he brings up a good point: for people who don’t transact 100% of their insurance business face-to-face, and instead prefer to handle those matters over the phone or via email, how would you suggest they ask if the person they’re dealing with is having a mid-life crisis and that they want to speak with another representative? Isn’t age discrimination illegal?
As someone who has been going through a midlife crisis for the past 8 years (which is pretty sad because I’m not yet 40 but will be this year), I can definitively answer that question: No.
Interesting, Louie. Have you ever had someone (basically) tell you they won’t work with you because you’re going through a mid-life crisis? Or have you ever said something similar to someone else? Just curious to know what kind of experience(s) you’ve had regarding this item.
January 15, 2016 at 11:57 am
Agent says:
Like or Dislike:
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2
Not to worry louie, the nightmare will be over in Jan 2017. The insurance market has been in the doldrums for 8 years and with a little certainty of what the government will be doing to create jobs, lower taxes on business, the picture should look a little rosier.
By the way Chip Kelley seems to have found a job with the 49ers. Unfortunately for him, he will not have control of player signing decisions.
January 12, 2016 at 3:08 pm
Brandy says:
Hot debate. What do you think?
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It will be very interesting to watch how this plays out. I hope it works, there is a lot of talented people riding on it. The industry could use something new and innovative that really works. I am not convinced it is the midlife crisis cure. These are some seasoned veterans willing to give up high paying, influential jobs for a gamble. I wish them all the luck.
I’m on the insurance industry grunt level, but what about the law of large numbers and adequate reserves, especially if excess premium is returned after the policy period?
“Adequate Reserves” is the key, Seems. Re-insurance contracts to back up a small company can come in handy as well, but the re-insurance carriers don’t give that away so that might make them less competitive. All in all, they might be better off having Uncle Warren put a boatload of money into them before they ever kick this venture off.
One of the great things about the insurance industry is how it fosters and supports innovative thinking. Not. As bad as it is at the insurer level, at the agency level its 1,000 times worse. These guys are trying something a little different. Good for them. Hopefully, good for the consumer.
Hey mr_, so agencies are 1,000 worse. Why are you still in the industry if things are so bad? Perhaps you have missed out on all the technology being used in our industry now. By the way, there are hundreds of agencies across this country that has more assets than Lemonade.
there are these things called insurance companies who do not use agents that are still in business. maybe mr_risk works for one of those. or maybe he used to be an agent and is now an independent adjuster so he does not deal with agencies any more.
Let me think for a moment about this new idea,,hummm, get a bunch of business together, have them pool some money, pay claims and if something is left, pool members get it back..why do I have a feeling that I heard this before? Got to check historic bankruptcy lists at the State Dept of Finance and Insurance. Why? I don’t rightly know but my gut feel tells me to check that list.
rocket, I think there have been a fairly significant number of companies who were inadequately reserved, tried to buy a segment of business with cut throat rates, had lossed, were put under conservatorship as a preluded to going out of business.
Not much reserve for a start up that will have least two years to find our how bad their rates were to try break into the market, considering the tail of losses in the business. Reminds me of the old BMA life company that started out on a shoe string and had a loss the first week that took all their capital. They will brag at the end of the first year that they are in the black. HaHa only because they haven’t yet blown thru the start up capital.
Something doesn’t exactly sound like a mutual to me. This pooling is based on communites not the whole picture. Wonder if the term assessable recipical may be in the mix somewhere?
Four seasoned executives?
Wot, have they been rolled in spices and marinade?
They may use up that initial $13 million on salaries of these guys. I am not sure I would trust anyone formerly with AIG since they have such a poor track record.
What season are these execs in? What is the point?
The main two ways to compete in the insurance business is business is through superior service and superior price. I don’t see how this strategy does either unless it somehow leads to an ill-informed superior price which will ultimately end them.
Dave, do you want someone in mid life crisis writing your Personal Insurance?
Is there a test to see if someone is just in mid-life versus having a mid-life crisis? Does this mean you’ll retire from being an Agent when you hit your mid-life crisis?
Although that wouldn’t bother me Agent, and I don’t want to feed into Confused’s post, but s/he brings up a good point: for people who don’t transact 100% of their insurance business face-to-face, and instead prefer to handle those matters over the phone or via email, how would you suggest they ask if the person they’re dealing with is having a mid-life crisis and that they want to speak with another representative? Isn’t age discrimination illegal?
As someone who has been going through a midlife crisis for the past 8 years (which is pretty sad because I’m not yet 40 but will be this year), I can definitively answer that question: No.
Interesting, Louie. Have you ever had someone (basically) tell you they won’t work with you because you’re going through a mid-life crisis? Or have you ever said something similar to someone else? Just curious to know what kind of experience(s) you’ve had regarding this item.
Not to worry louie, the nightmare will be over in Jan 2017. The insurance market has been in the doldrums for 8 years and with a little certainty of what the government will be doing to create jobs, lower taxes on business, the picture should look a little rosier.
By the way Chip Kelley seems to have found a job with the 49ers. Unfortunately for him, he will not have control of player signing decisions.
It will be very interesting to watch how this plays out. I hope it works, there is a lot of talented people riding on it. The industry could use something new and innovative that really works. I am not convinced it is the midlife crisis cure. These are some seasoned veterans willing to give up high paying, influential jobs for a gamble. I wish them all the luck.
They will all be out on the street in a year or two after this start up goes down the tube.
Will it be one year or two? How can you be sure it won’t survive?
How “innovative”…more senior roles for MEN in the insurance industry…yawn.
Something stopping you from applying?
I’m on the insurance industry grunt level, but what about the law of large numbers and adequate reserves, especially if excess premium is returned after the policy period?
“Adequate Reserves” is the key, Seems. Re-insurance contracts to back up a small company can come in handy as well, but the re-insurance carriers don’t give that away so that might make them less competitive. All in all, they might be better off having Uncle Warren put a boatload of money into them before they ever kick this venture off.
One of the great things about the insurance industry is how it fosters and supports innovative thinking. Not. As bad as it is at the insurer level, at the agency level its 1,000 times worse. These guys are trying something a little different. Good for them. Hopefully, good for the consumer.
Hey mr_, so agencies are 1,000 worse. Why are you still in the industry if things are so bad? Perhaps you have missed out on all the technology being used in our industry now. By the way, there are hundreds of agencies across this country that has more assets than Lemonade.
there are these things called insurance companies who do not use agents that are still in business. maybe mr_risk works for one of those. or maybe he used to be an agent and is now an independent adjuster so he does not deal with agencies any more.
Let me think for a moment about this new idea,,hummm, get a bunch of business together, have them pool some money, pay claims and if something is left, pool members get it back..why do I have a feeling that I heard this before? Got to check historic bankruptcy lists at the State Dept of Finance and Insurance. Why? I don’t rightly know but my gut feel tells me to check that list.
rocket, I think there have been a fairly significant number of companies who were inadequately reserved, tried to buy a segment of business with cut throat rates, had lossed, were put under conservatorship as a preluded to going out of business.
Have you guys not heard of the good ‘ol mutual model? Its just that and a 100 times more transparent. If they get it right insurance is disrupted ^2!
Not much reserve for a start up that will have least two years to find our how bad their rates were to try break into the market, considering the tail of losses in the business. Reminds me of the old BMA life company that started out on a shoe string and had a loss the first week that took all their capital. They will brag at the end of the first year that they are in the black. HaHa only because they haven’t yet blown thru the start up capital.
Something doesn’t exactly sound like a mutual to me. This pooling is based on communites not the whole picture. Wonder if the term assessable recipical may be in the mix somewhere?