Adding Value? Who Cares? And, who gets mad?

[lonestar]

D's, you did nothing wrong. But I am with you, I try to give the client all of their options. But more and more I am leaning toward letting the client file a claim unless they ask me for advice first.

[d's insurance store]

Final chapter...a BOR arrived for the three (Auto, HO, Umbrella) accounts at renewal...no surprises...my position, let the new agency deal with the likely non renewal for multiple Auto losses ($70K in the past 3 years) and this referenced new defense on the HO for a $3+million breach of contract.

Lesson learned? Oh yeah...no more offered advice without a request...here's the phone number for claims...have at it...if you're covered you'll get compensated and if not, you'll get a written reason why not.

[jackwehoca]

Pretty much what I was afraid would happen -see my comment 8/17/12. We have turned into a litigious society and hopefully they are just moving their business and that will be the end of it. No telling what the receiving broker may have said to gain the business but sounds like you may be better off without them, and they can do their maneuvering with the new broker. In the end, giving what you thought was helpful advice wound up costing you sleepless nights and you lost the customer anyway. I reiterate-direct them to the policy section regarding claims and loss reporting...you can ask for a copy so you have a back-up for them if needed (so you appear involved in the process), but let them shoulder the responsibility and repercussions involved when filing a claim. Except in a few "small town" areas, the local insurance agent model has given way to the bigger and powerful. Look for the new business, fight to keep what's on the books, but forget the small town atmosphere and attitude when dealing with the clients-most are swayed by price much more so than maintaining a relationship with the current broker.
Sorry if it sounds pessimistic but unfortunately pretty accurate and "right-on".

[d's insurance store]

Jack, I'll never know what the receiving agency said or did, but my educated guess it they just welcomed the increased commission and new client count.

My agency is small enough that before accepting a new client through BOR, I always ask what's driving them to me and what were the issues at the prior agency, with full knowledge that I can't solve every issue. If course, this is always delivered with genuine concern for the best interests of the insured and prefaced with the disclaimer that my agency can overcome deficiencies like unreturned phone calls and emails and a feeling of neglect, but cannot rewrite policy language or change rates.

For many years, I've followed the 80/20 rule in regards to troublesome clients...you know, where 20% of your clients give you 80% of your grief and if you can pare down that 20% to 10%, then you've cut your unmanageable grief in half.

[jackwehoca]

Good philosophy. The other ratio is the 20%-80% which is indirectly a corollary, i.e. 20% of your clients generate 80% of your income, so if you keep that 20% happy and pare the 20% of the other factor down to 10% as you suggest you are in good shape.
Invariably your best clients are the most amenable to work with since they have grown by adhering to the same principles of fairness and perceived value of other people's time. Now if you could only figure out those good clients in advance!!!