lets start with the fact that this is exactly whats wrong with our industry, we concider underwriters incompetitent and apparently we you all think we are POS’s.
First to the underwriter that thinks agents are POS, maybe you should get into another field YOU are why agents like me avoid carriers like yours, thus you are left with POS.
In defense of underwriters I work with some highly talented spectacular underwriters. I am very fortunate! Its really simple to get along, its called honesty, from both sides, when im told no i ask why, and my underwriters are willing to explain why, if its reasonable then so be it.
Some of you underwriters realize you have the ability to destroy an agents livelyhood and use it based weather you like the agent. Remember I’m here to make money, i dont give a dam if you like me, if you take money out of my pocket just for spite, yes i will make your life hell and send you crap.
any other consideration (at least at point of purchase), insurers have responded in kind. Meaning drive down costs at any cost. Meaning reduce expense ratio at any cost. So pay lower commissions to agents and more workload for underwriters and claims. So pretty soon we don’t get the best and brightest in our industry, we get the next level down, or maybe two levels down, when it comes to quality personnel. Which leads to increased customer complaints and lapse/can. Which increases expense ratio. Which drives up the cost of insurance.
My company asked me to refer candidates for agency. Out of the hundreds of people I know, I sent in first one, then another one a few years later. I only considered these two to have the servicepersons heart one needed to be the right representative for such a challenging business. Both hardworking, kind, family guys who would give our industry the kind of effort needed. Neither one met the financial background requirement necessary. Every other criteria made them top notch candidates.
My friend Gill, I absolutely differ with your opinion on the quality and quantity of products and services provided by the regional carriers.
I have been an underwriter for national, regional and international carriers for the past 30 years. I currently work for a regional carrier but have worked for the other carriers for 20 and I believe that I bring plenty of experience, skills and exertise to assist my rigional carrier.
I believe that carriers at all levels understand the need for good underwriter with good judgement in determining if a risk is acceptable or not.
Case in point – AIG Fined over $1,000,000.00 on poor judgement, Marsh, $800,000.00 on poor judgement, AON – $800,00+ on poor judgement and so on.
You make my point, kind of. Its not about products, its about people. And who’s guilty of poor judgement – not products but people. And thats my point.
When the effort to provide low cost insurance, perhaps at a rate that is unsustainable, works its way down to personnel decisions, including compensation, then we don’t get the best candidates for our profession. Thats what I told the human resources people who stood before us and asked us to refer friends and family for agency. They lowered commissions for new hires, and subsequently don’t get (in my opinion) the caliber of agency candidates that they used to. For expample, when I hired on 16 years ago, they were interviewing for agency a bank president, a former professoinal football player, a doctor, etc. It was really hard to get appointed. Now, they don’t even require a college degree. My thoughts were not really about regional insurers as much as the industry as a whole. Lastly, 16 years ago we offered about 1/3 the number of products. So I can make the case that the job is harder than ever, with a commission structure that is lower than ever. Whats up with that, dog?
Wow, Times are tough all over, It was once said that “insurers are canabalistic toward their own agents”. It was also said by a respected leader in our industry last year that “we are being led by ‘C’ students”. In a way he’s right, although our society has dumbed down the requirements to get the ‘A’ anymore thus making the ‘C’ the new A. It is very hard to recruit when the gene pool of the recruits has morphed down to the Y generation mentality. It is still possible to find qualified agent candidates, but now you only get one functional out of 500 wannabes. The nice part about that ‘1’ is he is capable of replacing about 14% of the attritioning agents and doing so all across the board.
If I read the comments and the article, two comments ring clear:
Agents apparently dislike Underwriters. But Underwriters apparently distrust Agents.
Agents aren’t very happy with the products carriers give them to sell.
Yet carriers develop products that agents have told them are needed to sell.
One of two things will happen 1) this checks and balances system will keep both sides honest in what’s most important, money in their pocket or 2) this conflict will drive the insurance industry into permanent disrepair. I don’t believe either side is thinking in the best interests of the customer, only their own needs and what can a carrier get from and agent and what an agent can get from a carrier. Money in their pocket. Vicious circle, I’m afraid.
unfortuatly these days many people will sacrifice service and quality for price. Fortunatly there are also still many people who wont make that sacrifice, but for how long? thank you geico! They have dont a good job of covencing people that its just another commodity like the watch on my wrist. The proplem is my watch doesnt protect me from financial ruin.
Also many carriers is this soft market will sacrifice quality for quantitiy (thank you TRVLRS)
Carriers cut back on quality and high service levels to be able to lower price and sell on price. Carriers would LOVE to offer higher levels and invest in that value-add, however, the majority (not all) of agencies sell purely on price to thier clients. Thus, if that’s the only thing agents can sell on, that’s what the carriers will concentrate on offering (price in lieu of higher service levels).
Here’s the sad part – when agents sell purely on price and turn and burn clients, they’re not really offering any additional value of thier services when compared to a direct carrier. Agents must make a proposition for thier value to thier clientelle in order to retain clients – otherwise, why not cut out the commission and go direct?
It has been and always will be an agents job (or any salesperson) to say, “Yes” to whatever the clients wants and it has been and always will be an underwriters job to say, “No, we can’t do that” and like it or not you can’t have one without the other.
How about doing a survey of underwriters on agents? greedy, sniveling, coniving. lying ill informed/educated POS?
That’s ok. Underwriters are slow, lacking common sense, and incompetent.
lets start with the fact that this is exactly whats wrong with our industry, we concider underwriters incompetitent and apparently we you all think we are POS’s.
First to the underwriter that thinks agents are POS, maybe you should get into another field YOU are why agents like me avoid carriers like yours, thus you are left with POS.
In defense of underwriters I work with some highly talented spectacular underwriters. I am very fortunate! Its really simple to get along, its called honesty, from both sides, when im told no i ask why, and my underwriters are willing to explain why, if its reasonable then so be it.
Some of you underwriters realize you have the ability to destroy an agents livelyhood and use it based weather you like the agent. Remember I’m here to make money, i dont give a dam if you like me, if you take money out of my pocket just for spite, yes i will make your life hell and send you crap.
You get what you give
AMEN!!! I agree with everything Mark said. Well put!!
any other consideration (at least at point of purchase), insurers have responded in kind. Meaning drive down costs at any cost. Meaning reduce expense ratio at any cost. So pay lower commissions to agents and more workload for underwriters and claims. So pretty soon we don’t get the best and brightest in our industry, we get the next level down, or maybe two levels down, when it comes to quality personnel. Which leads to increased customer complaints and lapse/can. Which increases expense ratio. Which drives up the cost of insurance.
My company asked me to refer candidates for agency. Out of the hundreds of people I know, I sent in first one, then another one a few years later. I only considered these two to have the servicepersons heart one needed to be the right representative for such a challenging business. Both hardworking, kind, family guys who would give our industry the kind of effort needed. Neither one met the financial background requirement necessary. Every other criteria made them top notch candidates.
My friend Gill, I absolutely differ with your opinion on the quality and quantity of products and services provided by the regional carriers.
I have been an underwriter for national, regional and international carriers for the past 30 years. I currently work for a regional carrier but have worked for the other carriers for 20 and I believe that I bring plenty of experience, skills and exertise to assist my rigional carrier.
I believe that carriers at all levels understand the need for good underwriter with good judgement in determining if a risk is acceptable or not.
Case in point – AIG Fined over $1,000,000.00 on poor judgement, Marsh, $800,000.00 on poor judgement, AON – $800,00+ on poor judgement and so on.
Think about it.
You make my point, kind of. Its not about products, its about people. And who’s guilty of poor judgement – not products but people. And thats my point.
When the effort to provide low cost insurance, perhaps at a rate that is unsustainable, works its way down to personnel decisions, including compensation, then we don’t get the best candidates for our profession. Thats what I told the human resources people who stood before us and asked us to refer friends and family for agency. They lowered commissions for new hires, and subsequently don’t get (in my opinion) the caliber of agency candidates that they used to. For expample, when I hired on 16 years ago, they were interviewing for agency a bank president, a former professoinal football player, a doctor, etc. It was really hard to get appointed. Now, they don’t even require a college degree. My thoughts were not really about regional insurers as much as the industry as a whole. Lastly, 16 years ago we offered about 1/3 the number of products. So I can make the case that the job is harder than ever, with a commission structure that is lower than ever. Whats up with that, dog?
Wow, Times are tough all over, It was once said that “insurers are canabalistic toward their own agents”. It was also said by a respected leader in our industry last year that “we are being led by ‘C’ students”. In a way he’s right, although our society has dumbed down the requirements to get the ‘A’ anymore thus making the ‘C’ the new A. It is very hard to recruit when the gene pool of the recruits has morphed down to the Y generation mentality. It is still possible to find qualified agent candidates, but now you only get one functional out of 500 wannabes. The nice part about that ‘1’ is he is capable of replacing about 14% of the attritioning agents and doing so all across the board.
If I read the comments and the article, two comments ring clear:
Agents apparently dislike Underwriters. But Underwriters apparently distrust Agents.
Agents aren’t very happy with the products carriers give them to sell.
Yet carriers develop products that agents have told them are needed to sell.
One of two things will happen 1) this checks and balances system will keep both sides honest in what’s most important, money in their pocket or 2) this conflict will drive the insurance industry into permanent disrepair. I don’t believe either side is thinking in the best interests of the customer, only their own needs and what can a carrier get from and agent and what an agent can get from a carrier. Money in their pocket. Vicious circle, I’m afraid.
unfortuatly these days many people will sacrifice service and quality for price. Fortunatly there are also still many people who wont make that sacrifice, but for how long? thank you geico! They have dont a good job of covencing people that its just another commodity like the watch on my wrist. The proplem is my watch doesnt protect me from financial ruin.
Also many carriers is this soft market will sacrifice quality for quantitiy (thank you TRVLRS)
Carriers cut back on quality and high service levels to be able to lower price and sell on price. Carriers would LOVE to offer higher levels and invest in that value-add, however, the majority (not all) of agencies sell purely on price to thier clients. Thus, if that’s the only thing agents can sell on, that’s what the carriers will concentrate on offering (price in lieu of higher service levels).
Here’s the sad part – when agents sell purely on price and turn and burn clients, they’re not really offering any additional value of thier services when compared to a direct carrier. Agents must make a proposition for thier value to thier clientelle in order to retain clients – otherwise, why not cut out the commission and go direct?
It has been and always will be an agents job (or any salesperson) to say, “Yes” to whatever the clients wants and it has been and always will be an underwriters job to say, “No, we can’t do that” and like it or not you can’t have one without the other.