Always something now it is habitational

[etimer]

After 23 years selling insurance, I'm running low in steam. Trying to re-quote recent accounts and the latest greatest insurance diatribe is...."don't know where we will get quotes from because of the habitational exposure. Ahhhhhhh, it is always something isn't it.

At a party I met a guy from Europe, an insurance sales person. We talked about the business and it seems that he has more markets, more open brokerage companies than in the US. Why is that?

The stress is starting to manifest itself in physical ailments and it may be time to hang up my gloves. There was a time I ate and laughed stress in the face but not anymore.

There isn't a broker or agency owner that I know, that can say markets are better than they were 15 years ago. I remember there was a time in this business that it was fun, getting new accounts, placing those accounts and getting a paycheck. Now you spend more time trying to find markets.

Just a bit of rant.

[yoyowordup]

I've been in this business for 21 years (1/2 my life) and I love coming to work everyday!

The markets definitely change over the years. I think we have done it to ourselves trying to always get the lowest price and causing our insured's to feel the need to shop much more often.

Anyway, I deal with it and I love helping my clients, new and old, everyday!!

[Dilbert]

I too feel the problem with markets is partly our own fault. We have too often taken the easy road and sold only on price. This not only teaches the consumer to continually market their policy to save a buck, but also forces the insurance companies to be continually price driven. When they could no longer cover their expenses, companies raised rates and/or left the marketplace. It seems that they are a lot more concerned about the bottom line than they have ever been and more wary to enter back into those lines that burnt them in the past.

[jtabosida]

I own my own company, make a good living, and only sell one line of Insurance. It makes life alot easier to specialize in something than try to write everything that comes your way. You know your markets better because your always dealing with them, you know your new markets because your quoting against them, and you really get to know your policies because there's fewer of them. I am a firm believer in selling people what they need, not a price. Simple fact is that if you sell them on price your always going to lose them to price. Find a nitch!

[etimer]

Hm? When hasn't capitalism been price driven? I must have slept through the econ 101 part that said, always pay the higher price. Price is not the problem. If it costs so much to service and take the risk...that is the price, high or low. Do you have a fiduciary duty to get the best coverage for the best price?

I've posted on this before but here it goes again. P&C companies are far too comfortable with their antitrust status. The mega mergers that are currently taking place are a telling sign of less and less markets in the future.

Unlike before the fall of Glass S., eventually the banks will be the main distributor of insurance. Because of their economy of scale, of a bank will be able to sell the insurance for less commission and tie their client to their bank. Insurance companies are salivating at that future thought and banks will still make a handsome profit. Ask yourself, could you sell your insurance as a value added loss leader?

I'll lay a $100 bill on the table that in 1015 I'll be correct.

My friend that owned his agency for 40 years died last year. I remember him saying if he had it to do over again, because of the current state of insurance markets, he would not have entered insurance.

I too feel the problem with markets is partly our own fault. We have too often taken the easy road and sold only on price. This not only teaches the consumer to continually market their policy to save a buck, but also forces the insurance companies to be continually price driven. When they could no longer cover their expenses, companies raised rates and/or left the marketplace. It seems that they are a lot more concerned about the bottom line than they have ever been and more wary to enter back into those lines that burnt them in the past.

[LCIS]

I remember the story about John Glenn being belted into the module at the top of a Saturn 5 rocket, he looked around and said "it is not very comforting to know that all this high tech equipment was built by the lowest bidder. The old saying of "you get what you pay for" could never be more true. Cheap insurance is not good insurance, it is cheap. As an agency owner when I say I will do the best I can for a client, this does not mean that I shop for price alone. It amazes me that agents do not show a client 3 quotes and explain the differences and then make a suggestion of what they need. I do not seem to have a problem explaining value of coverage to people I want as clients, I do however have no problem when someone goes down the street to save $6.00 on an auto policy because that agent quoted less coverage on the property damage. The short answer is that it is not wise to train clients to continue to shop for price, sell them the best coverage you can at an agreeable price. Obviously this will change a little based on what line of business you are talking about. Large commercial clients that start talking price only are not my target client, they are too much trouble and take up too much time. This sounds harsh but since I stopped trying to be the low ball price, my sales are up, service requests are down and the client base is much stronger now that I have the time to sell more instead of quote all the time. There will always be a segment of society that wants the cheapest, because they are ignorant about insurance, they all think a policy is a policy and they all cover the same thing. I have no problem when they go to Geico because it is $6.00 cheaper, I know that I offer better service and better coverage than an unlicensed, script reader fresh out of high school setting in a cubicle in bufu, Georgia. I love what I do and love to educate people about our products, unfortunetly most agents and producers do not have a passion for insurance, they have a goal to sell everything they can, whatever it takes just to make a buck and this is not good for the client. Etimer asked if we have a fiduciary duty to get the best coverage for the best price. Sort of, I believe we have a responsibility to offer several options, and insure the client properly, and educate them on the differences. I would much rather sell to a client that asks a lot of questions, this tells me they are NOT shopping price. It also mean that they have problably had a bad experience in the past with a policy that was not adequate. A client that does not ask questions and allows you to sell them a policy will come back to bite you in the rear at claim time because they did not know that the Homeowners did not include flood, or they would have never knowingly rejected uninsured motorists coverage, or my favorite is, I asked for "full coverage" I thought that included towing and roadside assistance. Retrain your customers or bump up your E&O limits.

[debmccafferty]

Please try the surplus lines marketplace for accounts with habitational exposures. They are quite competitive at least in the MidAtlantic region.
We are quoting rates as low as .20 for comml. property on some of the larger risks.
Would be happy to assist on any of your PA NJ MD or DE business.
Thanks and good luck!
Deb McCafferty

[etimer]

Oh stop... we all know that platitudes to sell service and not price. Yea, if I were Glenn and about to launch with about 1 million pounds of thrust, reaching 13,000 MPH rather quickly I would want the best not lowest bidder. BUT we are talking insurance policies not space tech....small difference I think? SO if the premium is $100 less with company A with a high rating than company B...are you saying you'll sell company B? Because B has a higher premium that are better?

I never ever said I go bottom fishing for unrated companies but I would say a local mutual can understand the science of underwriting as well as one of the mega companies. OR is the science of underwriting different from company to company? I think not.

Can a big 8 accounting company prepare your 1040 as well as a local CPA? I would think so and you would be wasting money to pay a big 8 firm to do what you local CPA can do quite well. Because the big 8 charges $600 to do your 1040 and your local guy charges $250.......do you mean your local CPA doesn't know how to complete a 1040. IF so I dare say that the testing for CPA's must be lacking.

I remember the story about John Glenn being belted into the module at the top of a Saturn 5 rocket, he looked around and said "it is not very comforting to know that all this high tech equipment was built by the lowest bidder. The old saying of "you get what you pay for" could never be more true. Cheap insurance is not good insurance, it is cheap. As an agency owner when I say I will do the best I can for a client, this does not mean that I shop for price alone. It amazes me that agents do not show a client 3 quotes and explain the differences and then make a suggestion of what they need. I do not seem to have a problem explaining value of coverage to people I want as clients, I do however have no problem when someone goes down the street to save $6.00 on an auto policy because that agent quoted less coverage on the property damage. The short answer is that it is not wise to train clients to continue to shop for price, sell them the best coverage you can at an agreeable price. Obviously this will change a little based on what line of business you are talking about. Large commercial clients that start talking price only are not my target client, they are too much trouble and take up too much time. This sounds harsh but since I stopped trying to be the low ball price, my sales are up, service requests are down and the client base is much stronger now that I have the time to sell more instead of quote all the time. There will always be a segment of society that wants the cheapest, because they are ignorant about insurance, they all think a policy is a policy and they all cover the same thing. I have no problem when they go to Geico because it is $6.00 cheaper, I know that I offer better service and better coverage than an unlicensed, script reader fresh out of high school setting in a cubicle in bufu, Georgia. I love what I do and love to educate people about our products, unfortunetly most agents and producers do not have a passion for insurance, they have a goal to sell everything they can, whatever it takes just to make a buck and this is not good for the client. Etimer asked if we have a fiduciary duty to get the best coverage for the best price. Sort of, I believe we have a responsibility to offer several options, and insure the client properly, and educate them on the differences. I would much rather sell to a client that asks a lot of questions, this tells me they are NOT shopping price. It also mean that they have problably had a bad experience in the past with a policy that was not adequate. A client that does not ask questions and allows you to sell them a policy will come back to bite you in the rear at claim time because they did not know that the Homeowners did not include flood, or they would have never knowingly rejected uninsured motorists coverage, or my favorite is, I asked for "full coverage" I thought that included towing and roadside assistance. Retrain your customers or bump up your E&O limits.

[watch481]

I too feel the problem with markets is partly our own fault. We have too often taken the easy road and sold only on price. This not only teaches the consumer to continually market their policy to save a buck, but also forces the insurance companies to be continually price driven. When they could no longer cover their expenses, companies raised rates and/or left the marketplace. It seems that they are a lot more concerned about the bottom line than they have ever been and more wary to enter back into those lines that burnt them in the past.

[:X] Now imagine if the world was like that.[:I]

[loudmouth]

I'm looking for a competitive product in TX fot Motels. I have found many but not one has been able to offer a good program with attractive rates.

[Texas GA]

We write this class with an admitted market. They are strict on underwriting, no unprotected, require their own app, let me know if you're interested and I will email.