What is your industry’s greatest flaw?
The insurance industry’s greatest flaw is price. You would be hard pressed to come by someone who hasn’t complained about the price of their insurance policy whether it is personal or business. Some may even say that premiums continue to go up while coverage goes down. For an insurance company it is a continual battle with the competition on price and coverage. It is a balancing act for an insurance company to retain business and gain new business all while trying to maintain the bottom line. What some may not understand is the dollars associated with even the smallest of claims.
Does loyalty no longer exist with insurance companies? The answer is not black and white. Sure there are still many people that are loyal to their insurance company whether it is because of the service provided, the rewards associated with continued business or perhaps there it is time and energy factor and a client isn’t particularly loyal but don’t have the ambition to “shop around”. But at the end of the day you would be hard press to find someone that would say no to paying less money for the same product of service.
So what does that mean for insurance companies? Service, service, service. If the competition is continually beating on price, service is what can win back a client. By adding best-in-class services that clients will benefit from, the ability to retain clients and gain new business will increase.
An example of a service that is trending in the personal insurance sector is accident forgiveness – a client won’t pay a deductible with their first at fault accident. This is feature that clients who make their first claim will benefit from. You will continue to see value-added services added to the menu of services offered by an insurance company and maybe these services will make you think twice about shopping around.
Will the insurance industry ever overcome the stigma on price?