Auto customers get angry when they don’t get an INSTANT quote. Now they have to be monitored before getting a quote? Am I the only one really skeptical here?
I was wondering how the claims are handled. I can’t imagine anyone waiting for a quote, unless the rates are 50% lower than everyone else. That being said, the claims experience is what will keep a driver with a Carrier after an accident. Will a company only targeting the elite drivers, and via mobile-app no less, be willing to go the extra mile for their policyholder? I have my doubts.
A lot of these insuretech’s just use standard TPA’s or in-house adjusting like everyone else. From what I’ve seen, they justify their rates with lower acquisition costs and overhead, but don’t skimp on LAE. To skimp on LAE would just moronic because you’d pay back the savings, plus more, in bad faith claims and dampened retentions, as you mentioned. That, and LAE for personal lines tends to be only a few percent of your CR.
But are the costs really lower? Do we have an example of a publicly traded insuretech to get some insight? I know of an “insuretech” agency that is spending upwards of $200 for each customer they acquire. To me that’s insane money.
Auto customers get angry when they don’t get an INSTANT quote. Now they have to be monitored before getting a quote? Am I the only one really skeptical here?
I was wondering how the claims are handled. I can’t imagine anyone waiting for a quote, unless the rates are 50% lower than everyone else. That being said, the claims experience is what will keep a driver with a Carrier after an accident. Will a company only targeting the elite drivers, and via mobile-app no less, be willing to go the extra mile for their policyholder? I have my doubts.
A lot of these insuretech’s just use standard TPA’s or in-house adjusting like everyone else. From what I’ve seen, they justify their rates with lower acquisition costs and overhead, but don’t skimp on LAE. To skimp on LAE would just moronic because you’d pay back the savings, plus more, in bad faith claims and dampened retentions, as you mentioned. That, and LAE for personal lines tends to be only a few percent of your CR.
But are the costs really lower? Do we have an example of a publicly traded insuretech to get some insight? I know of an “insuretech” agency that is spending upwards of $200 for each customer they acquire. To me that’s insane money.