Insurance rate increases: You can run but…

Common sense from Zurich, courtesy of Professional Broking.

Yet again sustainability of rating is key.  

In a year when we have yet to see the kind of rate hardening expected despite insurers being hurt by a significant drop in investment income, David Smith, head of broker, European general insurance and managing director, UK general insurance, broker division at Zurich spoke to me in our television studio to emphasise the need to harden rates now in order to avoid larger premium swings at a later date. I asked David about some of the challenges facing insurers, brokers and customers when trying to introduce rate increases, ahead of a Zurich produced booklet entitled Rate Hardening Explained to be released with September’s edition of PB. We hope you find the video useful and would appreciate any feedback.

Andrew Tjaardstra
Editor

Transparency: Resistance is futile!!!

Just in case anyone was in any real doubt as to WHY I maintain that the industry needs to switch focus away from short term results and onto long term strategy here is a view from the outside world on a key issue for our industry: Transparency Triumph

 

Irrespective of the area of insurance in which you are engaged I would hazard that a very high percentage of customers are also voters! Certainly all will be taxpayers…on some level. When you view it from that perspective, we are all in the same boat! So, why then, would we presume that transparency is not in our interest or in the best interests of society? Many Politicians have already paid the price for attempting to "cover up" their own greed and abuse of office. They are not alone and they can only hope that their retirement planning has been so sound as that of some senior bankers!

 

  

The domino effect

 

 

How open are you to being sold to?

Do you still blindly trust what you are told or are you more inclined to seek verification? Which would you believe?

1. the salesman, whose pitch, price &/or persistence appear credible, OR
2. your own judgement &/or the recommendation of trusted sources e.g. peers 

Despite what we like to tell ourselves the insurance industry is not valued, liked or trusted. So why then spend so much more money on selling than on creating customer value and satisfaction?

 

Credibility, reputation, marketshare, longeivity at stake 

Is anyone really convinced that we have got it right? If so, please explain it to me ’cause I simply don’t understand. Honest!

If, after 30 years in the industry, I "don’t get it" I really doubt that an increasingly skeptical marketplace will.

 

I DO understand that to achieve transparency requires deep cultural change and, like politicians and bankers, admitting that "we got things wrong" is not easy.  

 

There is much to be gained by embracing transparency and rating/commission sustainability to deliver customer value & service.

 

Want a hand with that? I am happy to help: 07919917150 or davidmillbrae@hotmail.com