By all means, let’s minimize the value of a good agent to an insured, advice on risk management and then shop the marketplace every year. That’s the Progressive way to do it.
Okay, here we go again. The techno-nerds make insurance available to “small” businesses (that pay upwards of $1 million per year) so that there is “transparency” and ginormous savings because they don’t have to pay the greedy bloodsucking agent.
In reality, the “small” business owners (you know, like the ones that we peons serve, who pay around $10,000 to $20,000 per year)will do what they do when they buy from GEICO: The cheapest, most bare bones coverage on the “transparent” site. The carriers will love it and will only need a woman with a voice like “Suri” to record the message: “I’m sorry, your policy does NOT cover that particular risk. Please refer to page 417 of your policy under “specific policy exclusions” to see that you DID NOT purchase optional coverage called “Business Interruption” at an extra cost. Your policy, our “BASIC” plan, offers NO coverage while you rebuild your building, if you can come up with the $50,000 deductible that you selected because you indicated that a fire would never happen. Thank you, and have a nice day. Can I direct you to our billing number to make your next payment?”
Here’s a question: If so many so-called small business consumers want to buy this way, why offer coverage through “Embroker?” Answer: Because the carriers are at least smart enough to realize that when the small business consumer, that bought the policy that won’t pay a claim, will only have recourse through the avenue that “sold” the policy. Embroker will have language in the final purchase document that holds itself harmless from decisions that the small business purchased. Final analysis? The small business consumer will do to itself what anybody with a phillips head screw driver and one small piece of hardware can do to themselves: Get screwed. Wait for the litigation.
“There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper, and the people who consider price only are this man’s lawful prey.” – John Ruskin
Gentlemen, the technology isn’t replacing the broker, it’s enhancing his/her ability to communicate needs, provide analysis, add transparency, educate, and give value to business owners/CFOs/CEO/etc. The fact this doesn’t already exist is what’s concerning.
Small business owners will get the most value! Why, because the current brokerage can’t afford to service them, and end up tossing them to service centers. At least with Embroker they’ll get a platform to help them understand, service, and manage their needs.
Spoken like a true Techno Nerd. We have been serving small business owners for decades now and it isn’t that hard or expensive. Tossing the accounts to a service center is asking for a lost renewal when the account needs service and doesn’t get it or a rate increase that is not explained or re-marketed.
I often see the use of the term “transparency” in touting the use of technology in the insurance process. Can you explain what is meant by “adding transparency”?
By all means, let’s minimize the value of a good agent to an insured, advice on risk management and then shop the marketplace every year. That’s the Progressive way to do it.
Agent,
Is this hitting a little too close for comfort?
Maybe now you will have a better understanding of why the LPR has not improved with the rest of the economic indicators.
Okay, here we go again. The techno-nerds make insurance available to “small” businesses (that pay upwards of $1 million per year) so that there is “transparency” and ginormous savings because they don’t have to pay the greedy bloodsucking agent.
In reality, the “small” business owners (you know, like the ones that we peons serve, who pay around $10,000 to $20,000 per year)will do what they do when they buy from GEICO: The cheapest, most bare bones coverage on the “transparent” site. The carriers will love it and will only need a woman with a voice like “Suri” to record the message: “I’m sorry, your policy does NOT cover that particular risk. Please refer to page 417 of your policy under “specific policy exclusions” to see that you DID NOT purchase optional coverage called “Business Interruption” at an extra cost. Your policy, our “BASIC” plan, offers NO coverage while you rebuild your building, if you can come up with the $50,000 deductible that you selected because you indicated that a fire would never happen. Thank you, and have a nice day. Can I direct you to our billing number to make your next payment?”
Here’s a question: If so many so-called small business consumers want to buy this way, why offer coverage through “Embroker?” Answer: Because the carriers are at least smart enough to realize that when the small business consumer, that bought the policy that won’t pay a claim, will only have recourse through the avenue that “sold” the policy. Embroker will have language in the final purchase document that holds itself harmless from decisions that the small business purchased. Final analysis? The small business consumer will do to itself what anybody with a phillips head screw driver and one small piece of hardware can do to themselves: Get screwed. Wait for the litigation.
JohnM, good one. Have some “Lemonade” on me.
“There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper, and the people who consider price only are this man’s lawful prey.” – John Ruskin
Gentlemen, the technology isn’t replacing the broker, it’s enhancing his/her ability to communicate needs, provide analysis, add transparency, educate, and give value to business owners/CFOs/CEO/etc. The fact this doesn’t already exist is what’s concerning.
Small business owners will get the most value! Why, because the current brokerage can’t afford to service them, and end up tossing them to service centers. At least with Embroker they’ll get a platform to help them understand, service, and manage their needs.
Spoken like a true Techno Nerd. We have been serving small business owners for decades now and it isn’t that hard or expensive. Tossing the accounts to a service center is asking for a lost renewal when the account needs service and doesn’t get it or a rate increase that is not explained or re-marketed.
I often see the use of the term “transparency” in touting the use of technology in the insurance process. Can you explain what is meant by “adding transparency”?