instead of spending so much money on advertising, the insurance companies should consider starting a consortium which offers free insurance counseling to consumers and small businesses. Then hire well trained people/licensed counselors etc.. to do the counseling.
Agents would still be agents but the consumer would have a chance at being an informed purchaser.
knowall, sounds like a really great idea. Hire licensed agents to inform consumers, counsel them, answer unlimited coverage, rate, policy change questions, perform many things that are not billed hourly to the consumer… wait a minute, don’t we already have that in place with agents?
As an agent, I have to make quota or go on probation; I have to make a sale or not pay my mortgage or buy the baby his milk. I know, I experience these challenges and needs daily.
The insurance consumer is largely serviced by folks (me included) who either are compensated based on what they sell them or are a phone number who doesn’t care what they sell them – I’m not sure we are actually independent enough to always do what is best for the consumer. I came from the finance world into the insurance world and was shocked at how many of the new policies got written while management looked the other way. The agents and the managers were told either make your numbers or you’re gone — that “or if” employment statement/ numbers requirement has exactly 0% relationship to customer service. If you’re a person who helps out current customers, but miss your new business target, you can be out on your keister, while the company benefits from you saving that customer. “Nice guys need not apply.”
No offense to any of the readers, but I’ve done a lot of unpaid work for other producers who never bothered to tell or update the consumer what they should consider for risk management. Rebuilding cost on your home and replacement on your contents, you have the minimum liability limits on your auto but you make 75k per year, you are carrying a 100 collision deductible on a 15 yr old vehicle worth 4500 and on and on. You know, if you carry higher deductibles on your policies, that would free up some funds to help pay for that life insurance you need and then they go do it all with their current agent or company. (Yes sometimes they will give you a referral)
Consumer Insurance Education, sponsored by the insurance companies, should be something to consider. We all know how it works, companies run rates to steal business from each other; maybe we could work together on this one (does John Nash gaming theory apply here?) and do a long term ‘solid’ for the consumer. What percent would want to sit down with an independent counselor, who knows? What percent do now? I guess it’s part of purchased financial planning? It wouldn’t cost that much to do a test (market).
Counseling might even have a more lasting effect than another clever insurance company commercial (many of which I do find entertaining).
knowall, your idea has merit… and in theory you would think it would appeal to consumers….
However, until the average consumer stops asking the question at every renewal, “Can you make it cheaper?”, I think your idea will have a tough time getting traction.
instead of spending so much money on advertising, the insurance companies should consider starting a consortium which offers free insurance counseling to consumers and small businesses. Then hire well trained people/licensed counselors etc.. to do the counseling.
Agents would still be agents but the consumer would have a chance at being an informed purchaser.
knowall, sounds like a really great idea. Hire licensed agents to inform consumers, counsel them, answer unlimited coverage, rate, policy change questions, perform many things that are not billed hourly to the consumer… wait a minute, don’t we already have that in place with agents?
As an agent, I have to make quota or go on probation; I have to make a sale or not pay my mortgage or buy the baby his milk. I know, I experience these challenges and needs daily.
The insurance consumer is largely serviced by folks (me included) who either are compensated based on what they sell them or are a phone number who doesn’t care what they sell them – I’m not sure we are actually independent enough to always do what is best for the consumer. I came from the finance world into the insurance world and was shocked at how many of the new policies got written while management looked the other way. The agents and the managers were told either make your numbers or you’re gone — that “or if” employment statement/ numbers requirement has exactly 0% relationship to customer service. If you’re a person who helps out current customers, but miss your new business target, you can be out on your keister, while the company benefits from you saving that customer. “Nice guys need not apply.”
No offense to any of the readers, but I’ve done a lot of unpaid work for other producers who never bothered to tell or update the consumer what they should consider for risk management. Rebuilding cost on your home and replacement on your contents, you have the minimum liability limits on your auto but you make 75k per year, you are carrying a 100 collision deductible on a 15 yr old vehicle worth 4500 and on and on. You know, if you carry higher deductibles on your policies, that would free up some funds to help pay for that life insurance you need and then they go do it all with their current agent or company. (Yes sometimes they will give you a referral)
Consumer Insurance Education, sponsored by the insurance companies, should be something to consider. We all know how it works, companies run rates to steal business from each other; maybe we could work together on this one (does John Nash gaming theory apply here?) and do a long term ‘solid’ for the consumer. What percent would want to sit down with an independent counselor, who knows? What percent do now? I guess it’s part of purchased financial planning? It wouldn’t cost that much to do a test (market).
Counseling might even have a more lasting effect than another clever insurance company commercial (many of which I do find entertaining).
knowall, your idea has merit… and in theory you would think it would appeal to consumers….
However, until the average consumer stops asking the question at every renewal, “Can you make it cheaper?”, I think your idea will have a tough time getting traction.