From Bad to Worse

When people think unpleasant events are over, they remember them as being less painful or annoying than when they expect them to happen again. That is due to the power of expectation, a power that helps people brace for the worst, according to research from the American Psychological Association.

In a series of eight studies exposing people to annoying noise, tedious computer tasks, or body pain, participants recalled such events as being significantly more negative if they expected them to happen again soon. You have to love the title of the final report: “The Pain Was Greater If It Will Happen Again: The Effect of Anticipated Continuation on Retrospective Discomfort.”

People may keep their equilibrium by using memory to steel themselves against future harm, say study co-authors Jeff Galak, PhD, of Carnegie Mellon University, and Tom Meyvis, PhD, of New York University. Their findings ran in the February issue of the Journal of Experimental Psychology: General.

Also, people recalled fun activities, such as playing video games, as equally enjoyable whether they thought they would play again or not.

The authors concluded that emotions negatively shape memory’s judgment of unpleasant experiences, but positively shape the recollected quality of pleasant experiences. “The prospect of repeating an experience can, in fact, change how people remember it,” they wrote.

Bracing for the worst may actually help people lessen their discomfort if a bad experience should happen, and allow them to be pleasantly surprised if it does not.

So, you think this recession is bad? Or this soft market?

If you think they are likely to reoccur, then you are probably experiencing more pain now than some of your competitors who have a brighter outlook. You might feel a little less pain if you know they aren’t likely to happen again soon.

I am convinced that insurance agents are essentially an optimistic bunch, seeing a cycle turn, a sales bump, a satisfied customer around almost every corner. This attitude probably explains their success. At the same time, insurance pros are not oblivious. They can deal with the reality of whatever the market is doing – soft, hard or in-between.

After Marsh reported impressive fourth quarter and year-end 2010 results showing revenue growth and rising profits, Brian Duperreault, president and CEO of Marsh & McLennan Inc., commented, “If you can’t perform in soft markets, you can’t perform.”

Performing well in a soft market, with all of its pain, prepares an agency to soar during a hard market. Just the thought of a hard market eases some of the hurt.

Topics Market