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Insurance as a Commodity

Earlier in my blog I theorized that “Risk Bearing”may be a “Commodity”.  Recent events have led me to believe this is not a true statement.   Different insurers, even in Personal Lines, are deviating from standard forms and coverage.  Only an experienced professional is going to know this.   Product differentiation between insurers renders “Risk Bearing” a risky purchase.

Consumers NEED advice as well as insurance.

Conflict = Commerce

If you are negotiating an outcome among different parties, Trust is a paramount factor in the negotiations. Try too choose an independent,fair facilitator,rather than entrenching in a position and fighting it out with attorneys. It is not to their advantage to resolve your issue without considerable conflict. This is a lot of the work I do for people. Find a trustworthy facilitator,air both sides of the issue, and FIX IT! Don’t let a whole tribe of people charge you an arm and a leg to do what is (and was) right in the first place. Remember Conflict = Commerce!

The Power of a Plan

Insurance Agents work spontaneously. We never know what will come through the door tomorrow and each day is a new adventure.

Insurance companies greet each day with thousands of policies to issue correctly, thousands of claims to settle and about a million other priorities that are ALL important and must be performed on a timely basis. Plus, they may have similar spontaneous events as the agent.

Insurance companies MUST engage in strategic planning to survive. Agents can survive day to day without a plan, but everyone will be more successful if the Insurer AND the Agent plan in concert with one another. PLAN for success and thrive rather than just survive.

Why they buy (Insurance)

There are only three reasons people buy insurance and only one of those reasons is a choice on the part of the client.

Those reasons are:

Fear

They truly understand they may have a loss that is significantly serious to damage their financial future

Compliance

The law requires the purchase… Workers Compensation or Auto Liability

Compulsion

The financing entity requires it.

The last two reasons create resentment, apathy and make the seal mandatory but less important to the purchaser. You have to work extra hard to make them listen to your advice.

A man convinced against his will, is of the same opinion still.

Ben Franklin.

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