Very good article, Chris. I would hope that those salesmen that are doing an unprofessional job can see themselves in your article, and thereby improve their skills.
Great article! Hard to believe this remains a major issue in the 21st century. I stared in this business 44 years ago as an adjustor. One morning I was assigned a dwelling fire, my first claim of size. I visited the dwelling, took photos, measured the dwelling and interviewed the insured. I went over the things the insured was to do in the event of a loss. I also did a replacement cost estimate of the dwelling and compared it the limit of insurance, which was deficient by half. I called the agent and he said ” I call this guy every year and he refuses to increase the limit.” I then advised the insured he would suffer a coinsurance penalty. He was not happy. A public adjustor was engaged. Bottom line, he burned the PA, who came over to my final offer and accepted it. Much to the dismay of the insured. It still goes on.
Keep in mind, we are still marketing insurance in a 18th century marketing system. The more one sells the more one earns. Caring about the customer is not a bid deal because the courts fall on the side of the insured. Once a court ruled, yes the agent is a crook but he is your crook insurance company.
In California where I practice law, the rule is that an agent or broker is simply an order-taker. BUT, if he/she “holds himself out” as knowledgeable and offering more, then he becomes liable for incorrect advice. In the comment by Jadefox, the agent was correct, he was simply an order taker. Hopefully that agent kept notes of each annual conversation. And, he might have sold more coverage (for more commission) if he had followed up with a letter to the insured explaining why it was important to insure to value.
You had me worried with the onset of the article but it concluded it well. Yes, we need a higher standard for agents.
Perhaps a fee based pay scale like that of a consultant versus a volume/premium commission pay structure, would be in the best interest of the client.
Allowing people to ‘own’ their book of business was a useful way to ensure that the agent kept client focused and professional.
People can buy insurance on their phone without ever discussing their risk.
I don’t think that the industry’s fault lies with the agent as much as it might with the carrier. The industry creates the culture and agents promote it. Just an opinion
Far too many so-called “agents” (or “Producers”), spend the time to discover (a) a client’s exposures, (b) the replacement cost values of the items being insured, or (c) just how insurance conscious a client is. Far too many are interested only in the commissions they will receive, and do not conduct any form of survey or analysis. Cannot blame the insureds, who know little about policy valuation clauses and provisions. Too many Producers are really not interested in personal lines accounts and seek to insure only commercial accounts. Sue them on E&O claims and they or their E&O carrier will pay the claims.
Well said, Chris.
Very good article, Chris. I would hope that those salesmen that are doing an unprofessional job can see themselves in your article, and thereby improve their skills.
Great article! Hard to believe this remains a major issue in the 21st century. I stared in this business 44 years ago as an adjustor. One morning I was assigned a dwelling fire, my first claim of size. I visited the dwelling, took photos, measured the dwelling and interviewed the insured. I went over the things the insured was to do in the event of a loss. I also did a replacement cost estimate of the dwelling and compared it the limit of insurance, which was deficient by half. I called the agent and he said ” I call this guy every year and he refuses to increase the limit.” I then advised the insured he would suffer a coinsurance penalty. He was not happy. A public adjustor was engaged. Bottom line, he burned the PA, who came over to my final offer and accepted it. Much to the dismay of the insured. It still goes on.
Keep in mind, we are still marketing insurance in a 18th century marketing system. The more one sells the more one earns. Caring about the customer is not a bid deal because the courts fall on the side of the insured. Once a court ruled, yes the agent is a crook but he is your crook insurance company.
In California where I practice law, the rule is that an agent or broker is simply an order-taker. BUT, if he/she “holds himself out” as knowledgeable and offering more, then he becomes liable for incorrect advice. In the comment by Jadefox, the agent was correct, he was simply an order taker. Hopefully that agent kept notes of each annual conversation. And, he might have sold more coverage (for more commission) if he had followed up with a letter to the insured explaining why it was important to insure to value.
You had me worried with the onset of the article but it concluded it well. Yes, we need a higher standard for agents.
Perhaps a fee based pay scale like that of a consultant versus a volume/premium commission pay structure, would be in the best interest of the client.
Allowing people to ‘own’ their book of business was a useful way to ensure that the agent kept client focused and professional.
People can buy insurance on their phone without ever discussing their risk.
I don’t think that the industry’s fault lies with the agent as much as it might with the carrier. The industry creates the culture and agents promote it. Just an opinion
Far too many so-called “agents” (or “Producers”), spend the time to discover (a) a client’s exposures, (b) the replacement cost values of the items being insured, or (c) just how insurance conscious a client is. Far too many are interested only in the commissions they will receive, and do not conduct any form of survey or analysis. Cannot blame the insureds, who know little about policy valuation clauses and provisions. Too many Producers are really not interested in personal lines accounts and seek to insure only commercial accounts. Sue them on E&O claims and they or their E&O carrier will pay the claims.