why can’t this industry learn a lesson about making a profit with fundimentals? i’ve never seen so many companies wanting this line of bus. that for me is customer churning,and a pain to service. look at how much it cost to advertise to keep the flow of new customers coming in to replace the nonpayers. at the bottom of the last cycle ,can you believe this, ceos were telling the government ” please save us from ourselves”. in the capital markets this industry was a joke. now we are going down the same path,and at the bottom this industry will blame everyone else for its profit problems. get real.
In my 35+ years in this business I never cease to be amased that no one ever seems to zero in on the one and only area that would eliminate the pricing and profit/loss cycles the non-standard auto insurance industry goes through. The answer is very simple, although due to a certain degree of behind the scenes influence and/or the politics involved will most likely never happen. However, here it is; If every State’s department of insurance actually carried out their mandate and obligation to make sure non-standard auto rates are neither inadequate, excessive, or discriminatory, and I assure you, especially with the technology we have today they can darn well do it, then the result would be a level playing field wherein non-standard auto carriers and their respective agents would compete on the basis of who give the best service and who are the best managers. Don’t you find it interesting that you never hear much about this approach???
why can’t this industry learn a lesson about making a profit with fundimentals? i’ve never seen so many companies wanting this line of bus. that for me is customer churning,and a pain to service. look at how much it cost to advertise to keep the flow of new customers coming in to replace the nonpayers. at the bottom of the last cycle ,can you believe this, ceos were telling the government ” please save us from ourselves”. in the capital markets this industry was a joke. now we are going down the same path,and at the bottom this industry will blame everyone else for its profit problems. get real.
In my 35+ years in this business I never cease to be amased that no one ever seems to zero in on the one and only area that would eliminate the pricing and profit/loss cycles the non-standard auto insurance industry goes through. The answer is very simple, although due to a certain degree of behind the scenes influence and/or the politics involved will most likely never happen. However, here it is; If every State’s department of insurance actually carried out their mandate and obligation to make sure non-standard auto rates are neither inadequate, excessive, or discriminatory, and I assure you, especially with the technology we have today they can darn well do it, then the result would be a level playing field wherein non-standard auto carriers and their respective agents would compete on the basis of who give the best service and who are the best managers. Don’t you find it interesting that you never hear much about this approach???