JT, have you been insurance for very long? Value added service is what my clients are looking for not a cheap price. The premiums our clients pay are already cheap compared to the rest of the resources, products and supplies that they purchase. Did you know that insurance has not been effected by inflation as every other commodity a business owner has to purchase. In fact insurance costs less today than it did in the 1970’s if you adjust for inflation, but the number of lawsuits and claims has skyrocketed. How can the price of insurance go down when the underwriting results haven’t returned a profit since the early 70’s? Most of my clients understand these facts and the one’s who don’t are not clients they are buyers.
I don’t disagree that those “used car” salemen agents who have purposely mislead carrier underwriters into placing a less than quality risk with their companies should lose their appointments, I do disagree that all clients and brokers be lumped into the same category. When I was discussing the clients who were visibly upset in their renewals going from 800.00 to 5,000.00 I was talking about good clean risks with no problems represented by good honest agents. And yes there are a few out there left.
Those people shouldn’t be ostracized for others blatant misuse of the carriers, but it appears those good ol boys are not only still getting away with their antics but getting rewarded by getting new appointments. And it was based solely one reason, not what kind of garbage they placed with the other carrier, not with what loss ratios they had, but solely on how much money they brought in. The fact they lied on applications, creatively underwrote most of their business, manipulated rates, and totally lied to their carrier underwriters seem to have no bearing. Yet when you shoot the market, it’s the good small grocery store with Mom and Pop, or the little carpenter with no losses, that suddenly have to eat a 5Kmp, that get stuck. Not big business. None of these people belong to a country club, or private schools.
All we are asking is to stop blanket deciding and look at the agent and the risk separately, and stop rewarding the slime balls in the industry.
In answer to your question- 10 years and before that 8 in banking. However I will elaborate a bit – I work in an E & S market. And have seen too many good people who had never had a loss, never had a claim, had terrific loss controls in place go out of business because they could no longer afford coverage. What can I say- but that I have compassion for tese people, and while I do understand we are in business to make money we can’t make money on what we are unable to sell.
You know how many carrier underwriters have said “Well they are just going to have to pay that” and they didn’t…. The insured doesn’t have to buy anything-
JT – I agree with you, the prostitute insurance companies are only concerned with cash flow, and next quarter’s report. As the demutualization of carriers continues, insurance companies only care about managing money. It’s reflected in the whores who inhabit the high management positions – their bonus, resume and where the head-hunter can move them for a lucrative sign on bonus. It’s all the same attitude.
Guys I have to agree with you on that issue. We no longer have insurance people running insurance companies, at least at the National carrier level. Most Regional carriers understand underwriting and the basics of insurance laws whereas the large money machines at STP/T, Hartford, etc are only looking to secure huge salaries, golden parachutes and how many times they can get their names in the news papers with out having it be for something illegal. As an agent, I just found out that one of my National Carriers wrote an account that they declined for me for another agent because “he explained it differently” which made it acceptable. In other words he either lied to the u/w or was lied to by the insured after I educated him. Either way they are whores for taking the risk after declining it for me. And this isn’t the first time.
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JT, have you been insurance for very long? Value added service is what my clients are looking for not a cheap price. The premiums our clients pay are already cheap compared to the rest of the resources, products and supplies that they purchase. Did you know that insurance has not been effected by inflation as every other commodity a business owner has to purchase. In fact insurance costs less today than it did in the 1970’s if you adjust for inflation, but the number of lawsuits and claims has skyrocketed. How can the price of insurance go down when the underwriting results haven’t returned a profit since the early 70’s? Most of my clients understand these facts and the one’s who don’t are not clients they are buyers.
Big and Paul,
Big and Paul,
I don’t disagree that those “used car” salemen agents who have purposely mislead carrier underwriters into placing a less than quality risk with their companies should lose their appointments, I do disagree that all clients and brokers be lumped into the same category. When I was discussing the clients who were visibly upset in their renewals going from 800.00 to 5,000.00 I was talking about good clean risks with no problems represented by good honest agents. And yes there are a few out there left.
Those people shouldn’t be ostracized for others blatant misuse of the carriers, but it appears those good ol boys are not only still getting away with their antics but getting rewarded by getting new appointments. And it was based solely one reason, not what kind of garbage they placed with the other carrier, not with what loss ratios they had, but solely on how much money they brought in. The fact they lied on applications, creatively underwrote most of their business, manipulated rates, and totally lied to their carrier underwriters seem to have no bearing. Yet when you shoot the market, it’s the good small grocery store with Mom and Pop, or the little carpenter with no losses, that suddenly have to eat a 5Kmp, that get stuck. Not big business. None of these people belong to a country club, or private schools.
All we are asking is to stop blanket deciding and look at the agent and the risk separately, and stop rewarding the slime balls in the industry.
Doug-
In answer to your question- 10 years and before that 8 in banking. However I will elaborate a bit – I work in an E & S market. And have seen too many good people who had never had a loss, never had a claim, had terrific loss controls in place go out of business because they could no longer afford coverage. What can I say- but that I have compassion for tese people, and while I do understand we are in business to make money we can’t make money on what we are unable to sell.
You know how many carrier underwriters have said “Well they are just going to have to pay that” and they didn’t…. The insured doesn’t have to buy anything-
JT – I agree with you, the prostitute insurance companies are only concerned with cash flow, and next quarter’s report. As the demutualization of carriers continues, insurance companies only care about managing money. It’s reflected in the whores who inhabit the high management positions – their bonus, resume and where the head-hunter can move them for a lucrative sign on bonus. It’s all the same attitude.
Paul-
Too true….
Guys I have to agree with you on that issue. We no longer have insurance people running insurance companies, at least at the National carrier level. Most Regional carriers understand underwriting and the basics of insurance laws whereas the large money machines at STP/T, Hartford, etc are only looking to secure huge salaries, golden parachutes and how many times they can get their names in the news papers with out having it be for something illegal. As an agent, I just found out that one of my National Carriers wrote an account that they declined for me for another agent because “he explained it differently” which made it acceptable. In other words he either lied to the u/w or was lied to by the insured after I educated him. Either way they are whores for taking the risk after declining it for me. And this isn’t the first time.