Seth says: Compared to perfect: the price/value mismatch in content

My main man Seth delivers yet again!

Don’t believe the hype

I am fed up “slapping-down” people in the UK insurance industry for believing the marketing messages the WE created in an attempt to grab more business! It only serves to emphasise to me the extent of the disconnect that exists in the industry. I mean, how can someone employed as an underwriter, claim(!) to understand the business if they KNOW that there is often no (or very little) justification for the difference between what the premium SHOULD be and what it NEEDS to be, just to grab or retain the business…and that’s before outrageous commissions are paid!!?

Unknown and unrated exposures, unsustainable premiums, unjustified commissions and underwhelmed clients is a pretty lethal combination. 

Gresham’s Law

If premiums are insufficient claims will be a problem. If claims are a problem the products you sell aren’t “valued” so need to be cheap, etc. It ain’t rocket science but it could be a death spiral for the weakest participants!

“How’s the wine?”

You really can’t answer that question out of context. Compared to what? Compared to a hundred dollar bottle? Not so good. Compared to any other $12 bottle… great!

“How was the hotel?”

“How’s the service at the post office?”

In just about all the decisions we make, we consider the price. A shipper doesn’t expect the same level of service quality from a first class letter delivery than it does from an overnight international courier service. Of course not.

And yet…

A quick analysis of the top 100 titles on Amazon (movies, books, music, doesn’t matter what) shows zero correlation between the price and the reviews. (I didn’t do the math, but you’re welcome to… might be a good science fair entry). Try to imagine a similar disconnect if the subject was cars or clothing…

For any other good or service, the value of a free alternative that was any good would be infinite–free airplane tickets, free dinners at the cafe… When it comes to content, though, we rarely compare the experience other content at a similar price. We compare it to perfect.

via Seth’s Blog: Compared to perfect: the price/value mismatch in content.

Scottish finance industry reaches ‘watershed’

I was out and about yesterday and only realised this morning that the content has gone missing!

The PwC report said they needed to act quickly but if they made the right moves there was a potential to double the number of jobs in the sector – currently at almost 100,000, as new banks moved into Edinburgh and Glasgow to recruit from those being shed by the traditional lenders.

Tax powers

More collaboration – within the industry and with universities and colleges – is required to improve the industry’s international standing and attract inward investors, it said.

There is also a warning about uncertainty over tax rates as a concern for business, as Holyrood prepares to take on extended tax powers.

Stephanie Bruce, a financial services specialist at PwC, said: “Without urgent action Scotland could continue to fall down the international rankings and, crucially, the rate of decline could accelerate.

“With political debate focusing on the challenges posed by the public sector cuts, particularly in the run-up to the Scottish elections, we need to work effectively as an industry to ensure that support for financial services remains firmly on the agenda.”

via BBC News – Scottish finance industry reaches ‘watershed’.

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