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Insurance Business | 19 Jun 2017, 10:06 AM Agree 0
“Agents that sell on price are not properly addressing the coverage needs of their clients and are working on a slippery slope.”
  • NJ Underwriter | 19 Jun 2017, 12:21 PM Agree 0
    Good article. Brokers have been selling coverage on price for years. As an representative of a carrier, we do our best to educate the brokers, wholesalers, and insureds about our policy, but to little or no avail. Recently, we've noticed certain agents in the professional lines space that are aggressively driving the market into the dirt. If the products they were pushing were better, we could constructively respond (refile to account for the market trends), but (so far) the insureds seem to be the only victims. What makes matters worse, is that when our firm has notified the various state DOIs regarding these practices (of which also include improper service/policy/agency fees/suspected violation of filed rate and rules), no one seems to care. We aren't doing it to make our competitor's lives harder, just call them out for their improper conduct.
  • Moreismore | 19 Jun 2017, 01:05 PM Agree 0
    You should address this article to Geico agents. They are the biggest price shoppers of all time, selling individuals state minimum limits 93% of the time, regardless of their asset levels. As independent agents, we come across so many cases where customers have switched to Geico from policies offering higher protection to basic bare minimums, without even realizing it. Unfortunately, most consumers focus on price when they obtain a quote and they do not usually take the time to compare coverage levels.
  • | 20 Jun 2017, 07:24 AM Agree 0
    Matching or beating prices just validates what the previous agent did, and doesn't bring value to the client. Most companies situation changes a bit from year to year, so the apples to apples strategy assumes no change. It also assumes that the carrier market has not changed. In cyber alone, there should be something new to discuss with the client. Price alone plays into the Google/Amazon playbook which no agent/broker can win.
  • Johnathan Clark-Wise | 20 Jun 2017, 08:58 AM Agree 0

    “The bitterness of financial loss due to inadequate coverage,
    remains long after the sweetness of a cheap price is forgotten” JCW
  • RICHARD CALFA | 25 Jun 2017, 12:05 PM Agree 0
    WHILE TRUE AND THE CONCEPT OF EFFECTIVE RISK MANAGEMENT IS WORTHY OF PURSUIT ........ UNFORTUNATELY PRICE CONTINUALLY DOMINATES OVER SUBSTANCE IN THE MARKETING AND PURCHASE OF INSURANCE, UNTIL SUBSTANCE IS FOUND TO BE WANTON, THEN COMES FINANCIAL DISAPPOINTMENT AND FINGER POINTING AS TO CAUSE. TO BLAME AGENTS .... HOW MANY INSURANCE COMPANIES MARKET AND ADVERTISE COVERAGE OVER PRICE, PRICE, PRICE. UNFORTUNATELY NOT ALL INSURANCE POLICIES ARE CREATED EQUAL NOR DO ALL INSURANCE COMPANIES REACT IN A SIMILAR MANNER AT THE TIME OF NEED. SUBSTANCE IS THE INVOLVEMENT OF A PROFESSIONAL INDEPENDENT INSURANCE AGENT WORKING IN BEHALF OF THE CLIENT (RATHER THEN JUST DEALING WITH ANOTHER CUSTOMER). WITH REGRET, PRICE DOMINATES OVER SUBSTANCE. REGARDLESS ............. WE PURSUE PROFESSIONALISM.
  • The rest of the world. | 26 Jun 2017, 10:57 AM Agree 0
    Richard, typing in all caps is the same as yelling. Stay off the internet. Thank you, the rest of the world.
  • Jennifer Montgomery | 28 Jun 2017, 03:13 PM Agree 0
    I have been working as an agent for over 19 years and price is always the big conversation customer want to discuss. When approached with the other agent has lower price I than break down both policies and put them side by side and explain the coverage differences. If the customer only cares about price after we have talked than they are not my kind of customer. Explain to clients all the time who are you going to be mad at when the claim occurs. Many customers need to be forced to think and they will typically pay more premium for better coverage. Many in our industry do not discuss coverage with customers, they spend more time wanting the lowest rate. Many customers have continued to do business with me for more money, that is because I have built the relationship and offered my knowledge to protect their family. In regards to the customers that only want price, they can go elsewhere because they will be the first to scream I didn't know the coverage wasn't there in claim situation. Love my industry will continue to sale value not price, makes me proud at the end of the day!
  • JClark | 17 Jul 2017, 08:54 PM Agree 0
    I still think this is a bull crap argument. I can compare my last 25 new clients policies with the policies I have written them and they will be apples to apples. But if I wasn't lower I was not getting that business. If you want to start talking about coverage that's good, but get Gieco, Progressive, Esurance, Allstate and State Farm to stop advertising with millions of dollars that they will save you over $500 year over your current company.
    This why I'm tired of hearing sell on coverage, sell on coverage. The big companies have already prostituted the market. And every company I talk with tells me that their product is so much better that the other HO3 or H05 but that's a load of BULL. The only think we can do is tie the customer up with as many policies as we can and provide superior customer service. The ride the wave till they move on.
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