Dealing with the Press

[scott]

I put myself "out-there" and get two of three requests each week from the press. Sometimes its background and sometimes they are looking for quotes.

Yesterday I heard from a reporter with whom I had worked many times. She works for a major national news org. Her topic of interest was personal auto insurance. She really went after agents and commissions. I tried to gently steer her away from her negative comments on agents, commissions, contingents, insurer pricing, etc. Giving her facts and my perspective on such matters.

She sent me a fact checking request today (very common - to make sure they got the info right). For the first time she delivered a hatchet job.

I thought this might interest some of you. Dealing with the press is an important part of building a marketing gravity. It may be the local press and it may be national. This may not be the perfect reply to her. You can't just let this stuff go though.



~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Dear Sally, (not her real name)

See my notes below on your statements...

Sally, this must be the 5th or 6th time we have worked together. This is the first time I have felt that you are slanting your piece. It seems that you are looking to denigrate auto insurers and insurance agents.

I dont expect that reporters will be cheerleaders. However, you have taken common, accepted, normal business practices and made them out to be devious. As I said to you yesterday, is anyone really surprised that insurance salespeople are paid for selling insurance? Next, you'll tell me that doctors are actually paid for treating sick people.

I have enjoyed working with you in the past. This one? Not so much.

The Reporters Original Note Marked with ">" My reply with "***"
> Hi Scott,
>
> Thank you for your time on the phone yesterday regarding the article I’m
> updating on car insurance. The story is scheduled to go live on our web site
> on Monday morning. I’m hoping you can review the following statements and
> change anything that isn’t factually accurate. My deadline is today at 3:00
> p.m. Eastern. I look forward to hearing from you.

>When shopping for a car insurance policy, it’s helpful to know who
> is looking out for your bottom line. For example, direct writers tend to
> work as salaried employees for the car insurance company and often receive
> little to no commission--so they may have less personal incentive to make a
> sale. Independent agents and brokers often receive not only a sales
> commission, but also a supplemental commission, known as “contingent
> commission,” awarding them for selling a specific insurer’s policy.

***You didnt get the direct writer stuff from me. To my knowledge all
direct writers (AllState, State Farm, etc.) are on commission. I do
not know about GEICO and other phone based operations. To suggest
that a salaried employee has less incentive to sell you something is
just silly. Will that employee have a job in two weeks if he didnt
sell anything? Will he get a raise if he sells a lot? Our economy
works because of incentives and self interest. Consumers have to be
looking out for their interests too. Never ask a barber if you need a
haircut.


>These commissions come in two categories: “steering” commissions for
> signing customers with a particular carrier and thereby placing more
> business with that insurer, and profitability-based contingent commissions,
> for getting clients with a low loss ratio, which means that individuals’
> premiums are greater than their claims.

*******I would never use the term steering commissions. Agents are
paid a commission on policies they sell. Agencies are paid bonuses
for growth with an insurer and for placing profitable business.
Profitable business is business that has low losses compared to
premiums. Insurance companies are no different than any other
business. Your phrasing (as I said yesterday) puts a negative spin on
remuneration.


> These incentives may lead some agents or brokers to recommend
> unnecessary or unhelpful policies to consumers. But most insurers offer
> these commissions, so it’s unlikely that an agent will recommend one company
> over another, says Simmonds. To protect yourself, ask about commissions and
> have prospective agents explain their recommendations.
>

*****I never said this. Insurance agents no different from anyone
else. Do you expect the Ford dealer to tell you a Chevy is the best
car for you?


> In general, most insurers sort customers into pricing tiers (which
> often range from two to four) based on where they live, their age and their
> driving record. But more variables have been added to the mix, including
> credit history, homeownership and limits on past policies. And since each
> insurer interprets these variables differently, it’s even tougher for
> consumers to get a handle on the system.

********Again, your phasing is negative. You did not get this from
me. Insurers try to sell policies that will prove to be profitable.
Does your employer sell ads in the hope of losing money? I am not
saying the system is angelic. However, insurance companies are not
the devil either.

[tcook23]

Well done! It is defiantly a risk to put yourself out on a wimb, but it is important to stand your ground in times of turmoil. Any 'level' of press can be the rise OR fall of an agency. Like the old keep your enemies closer saying.
__________________________________________________________________________________________________________
Todd Cook : Indianapolis, IN: HSA