Daily sales & marketing tips for insurance professionals

Agents who are seeking to sell more health insurance policies can benefit from paying close attention to nationwide medical trends with an eye on understanding the changing needs of customers.

In recent years, one of the most pronounced nationwide health trends has been the sharp rise in diabetes and obesity, which can result in more expensive insurance rates while also saddling individuals with potentially expensive medical costs, a shorter life expectancy, and a lower quality of life in general.

Given these trends, insurance agents can benefit from being as familiar as possible with provisions in the plans they sell that involve weight loss treatment, diabetes management and controlling blood pressure. Those with chronic health conditions also tend to rely on more prescriptions than the average individual.

Recent information from the UCLA Center for Health Policy Research offers more insight into the problem. Many media reports have focused on states in the Deep South as leading the nation in obesity and poor health in general.

However, new data from the center finds that even in California, where active lifestyles and healthier diets tend to be more common, the majority of adults in the state are obese or overweight. The report added that the state is also home to more than 2 million diabetics.

Now is the time to think about prospecting! This news article was posted in our insurance news section recently, and it applies well to this blog too.

Recent data collected is suggesting that customers may be willing to consider changing insurance companies.

Overall customer satisfaction with auto insurance companies has declined somewhat since 2009 according to a recent survey from J.D. Power and Associates. The organization measures current customer satisfaction at 777 on a 1,000 point scale, which marks a 10 point decline over the past year.

The study focused on auto insurance, from claims and billing to price, policy offerings and interaction.

“Now that the market has stabilized, consumers are feeling more in control of their finances and have become more aware of and sensitive to the rate increases that have started to occur since the recent recessionary period,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates.

According to the data, 22 percent of customers report having had a recent increase in premiums. Last year, that figure stood at just 17 percent. Also, the report noted that about 60 percent of policy holders had seen their premiums rise without any advance notice from their insurance company.

Agents who specialize in home insurance policies may want to consider some advice offered by one of the industry’s leading organizations, in light of the five-year anniversary of Hurricane Katrina.

According to the Insurance Information Institute (III), the effects of Hurricane Katrina left behind a number of lasting lessons for homeowners. For example, those who decided not to purchase flood insurance were exposed to thousands of dollars in costs that were not covered under standard home insurance policies.

Also, the III adds that another common mistake for individuals and businesses is to purchase an insufficient amount of coverage or a policy that does not meet their needs. With that in mind, agents are advised to work closely with clients to ensure their satisfaction as well as their long-term financial interests.

Policy holders should also be reminded to take an inventory of their valuables since this can help make things easier if they do end up needing to file a claim.

Property owners can also save on their home insurance premiums and reduce potential storm damage by taking various steps to weather-proof their home.

The economy has been showing more signs of improvement in recent months, but millions of Americans are continuing to struggle with finances while eyeing potential new career opportunities. For some, one interesting job option to consider could be to become an insurance adjuster.

According to the Bureau of Labor Statistics (BLS), there is no specific college major needed to become an insurance adjuster, and in some cases, those with a high school education may be able to find work in this sector. When it comes to working with auto insurance claims, the federal agency notes that one option may be to take courses at a local vocational college on estimating repair costs.

However, the BLS adds that people with business and accounting backgrounds may be particularly desirable to insurance companies in need of adjusters. Other fields that would likely allow a smooth transition into insurance adjusting include engineering, architecture and law. Also, those who want to work with life and health insurance claims may find that a background in medicine or healthcare is helpful.

Insurance adjusters also often work closely with investigators in incidents where fraud is suspected. In some cases, adjusters can move on to become investigators as they become more experienced. Otherwise, the BLS suggests that a background in law enforcement, private investigation or insurance examining is a good way to start working in this area.

Insurance adjusters will often find their work easier in cases where policyholders have held on to receipts for valuables, and where they have not discarded damaged items or tried to make short-term repairs to a structure.

The recession has made it more important than ever for insurance adjusters to have a sharp eye for potential fraud. This is because of the general upswing in fraud cases reported in many states over the past several years. For example, a good insurance adjuster will usually be able to tell the difference between actual hail damage on a vehicle, and the tell-tale marks left by a hammer if the policyholder is trying to inflate a claim or commit another type of fraud.

Adjusters and insurance investigators may also find themselves up against more sophisticated operations where entire criminal rings will stage phony accidents.
This field does not always require an individual to be employed by a specific insurance company. Some who get into the field may find the opportunity to work as a public insurance adjuster. With this position, an adjuster is hired by policyholders who recently suffered a loss to handle many different aspects of the claims process.

According to the National Association of Public Insurance Adjusters, workers in this sector can work with policyholders on common situations like fires, floods and theft, as well as other incidents such as riot damage, explosions and collapsed buildings. The group adds that a public adjuster inspects the site where the damage occurred, reviews a client’s insurance coverage, determines replacement costs and other things on behalf of a policyholder.

Elsewhere, the Insurance Information Institute notes that public insurance adjusters can charge as much as 15 percent of the total value of a claim settlement for their work, and this amount will not be covered under a policy. The organization also advises consumers to check an adjuster’s qualifications with their state insurance department and to be particularly wary of those who go door-to-door after a disaster. In fact, the III also advises consumers that in the event of a disaster, states will often place a limit on how much an adjuster can charge for their services.

If you operate a privately held insurance agency and see your firm as an industry leader, the Insurance Journal is looking for you! 

Leading agencies from each of the following categories will be considered for inclusion in this year’s annual Top 100 Property/Casualty Independent Insurance Agencies report.

Just think of the boost that could give your marketing!

• Top overall independent agencies
• Top commercial lines independent agencies
• Top personal lines independent agencies
• Top regional agencies

Apply for inclusion today, and watch for survey results beginning with the August 2, 2010 issue of Insurance Journal. With a deadline of June 25, you can’t afford to wait.

Besides, you might just confirm what you’ve known all along: You’re doing a great job!

If you keep an eye on the news, you may have seen a story recently regarding the professional wrestler known as ”Hulk Hogan.” 

Following a car accident involving his son, who was street racing in Clearwater, Fla., Hogan filed suit against his insurer, Wells Fargo Insurance Services, saying it failed to recommend an umbrella policy that could have protected he and his son financially.

Apparently, in his recklessness, the younger man caused a crash that left a passenger in another vehicle with severe brain injuries. The injured man then took him to court, and the case was settled out of court for an undisclosed sum of money.

If this sounds a bit hokey to you, you’re not alone. My first impression after reading this story was that Hogan’s son should take responsibility for his own actions. After all, isn’t that what we preach to our kids about growing up? 

How could an individual blame their insurer for their own neglect anyway?

Other celebrities have tried this tack too. But it appears the problem is more widespread than that. More and more desperate business owners, faced with hard times and growing debt, also seem to be lashing out by filing lawsuits against their insurance agents, financial planners and service providers.

Why? It’s simple: Because they have deep pockets.

According to Attorney Nancy M. Reimer, an attorney in Boston, issues with errors and omissions, financial planning and taxation lend themselves to service providers becoming scapegoats for those who have nothing to lose by filing suit—especially if the provider is wealthy or heavily insured.

But what can you do to protect yourself from unscrupulous people like this?

“As an advisor, insurance agent or financial planner, all you can do is advise,” Reimer told IFAwebnews.com recently. “You can’t force them to take what you suggest….”

To protect yourself against this type of risk, Reimer says you should always provide a letter that spells out exactly what services you provide. Then, if both you and the client agree, you should each sign the letter.

What if the customer objects? “In most cases, the client will just sign it,” Reimer explains. “If they won’t, then blame it on the lawyer or the insurance carrier,” if that’s what it takes to get them to sign.

Reimer also suggests that agents document all the recommendations they make to protect themselves from later suit.

“At least then you have some protection,” she concludes.

Whether over a personal or a business matter, it appears that desperate times lead some people to desperate measures. So do what you can to protect yourself from becoming a target. The future of your business may depend on it.

Wondering what effect the new health care laws will have on you and your business?

If so, you’re not alone. Many people are wondering how the new laws, once they actually take effect, will impact both the way they do business and their bottom line.

To help answer your questions, American Agent and Broker recently conducted an interview with Adam Bruckman, President and CEO of Digital Insurance, Inc., about the implications of the new guidelines for professionals who work in the industry.

Take a peek at the article, titled The new healthcare law: What it means to agents and brokers, and find out what health care reform could mean for you and your profession.

*Hat tip to Tyler at iboomerang for passing along this info!

As September,  and therefore 2009’s third quarter, draws to an end, all of our thoughts will inevitably turn to the economy.  Without a doubt, this has been one of the most chaotic years in US economic history – a veritable roller coaster – and if you’re still in the game as an insurance agent, then you’re one tough cookie!  As I speak to insurance agents on the phone every day, one question will stubbornly come up every now and then: is anyone out there actually buying insurance, or are they all just rate shopping?  I could tell you the answer is a resounding yes, even offer up the testimonies of agents that I work with that purchase leads and say that this year, purchasing leads has helped them to make this their best year yet… but don’t take my word for it, take the people’s:

 According to a new survey released by the nonprofit LIFE Foundation (and found through Insurance News Net), 56% of Americans believe that it is more important to have life insurance now than it was a just year ago.  Even though there were 33% of Americans that have lost coverage this year – due to a job loss or a job change, an even higher 39% increased their existing coverage and 28% of consumers went out and bought life insurance for the very first time.  So what are these numbers saying?  To me, and to LIFE Foundation, they’re saying that even during times of economic crisis or hardship, or perhaps even because of it, people value security for their family.   People are still buying and maintaining insurance coverage. 

 Again though, don’t take my word for it.   According to Insurance Networking News, New York Life Insurance Co. sponsored another survey that shows that 83% of Americans age 30 and older agree that economic hardship has increased their desire to provide financial protection for their family.  So the silver lining in the hail cloud of economic woes is that consumers aren’t just shopping; they’re purchasing.

Insurance scoring—insurers loooove it, and they think everyone else should heart it too. They insist that prices stay low because insurance scores (which include but are not limited to a person’s credit score) have an impressive knack for predicting risk.

But the public and state regulators need regular convincing, with fairness their primary concern. The NAIC recently convened a public hearing on insurance scoring, and industry representatives were forced, once again, to defend the practice, largely against a 2004 study conducted by the Missouri DOI.

The Missouri study revealed that the strongest predictors in a consumer’s insurance score were race and income, a fact which—rather understandably—created some hostility among the public and nervousness among policymakers.

The Insurance Information Institute (III) criticized the report when it came out in 2004, pointing out methodological errors that they said were the result of a pre-existing bias against the practice. Further, the III said, the Missouri department of insurance failed to acknowledge the benefits bestowed by insurance scoring: “The study’s opinions imply that the MDOI is prepared to eliminate the credit-related discounts currently offered by insurers to thousands of minority families living in Missouri as well as to homeowners and drivers throughout the state.”

Most states allow credit-based insurance scores, which is a fact commonly touted by insurance industry groups. (They’re less excited about mentioning that 48 states have laws putting certain restrictions on the practice.)

The faltering economy and tightening credit markets have sparked new criticism of insurance scoring. Critics predicted that the poor (whose ranks are swelling and whose credit scores have suffered) would be dealt another blow with worsening insurance scores and thus higher premiums.

“If insurance prices started to rise for no good reason, at a time when the public was least able to pay more, it would be a political, regulatory, and public relations disaster,” said Brian’s Sullivan’s May 18 Auto Insurance Report (print only, subscription required). “Insurers would be headed for a fierce beating, and worse, it would be well-deserved.”

Sullivan reports that while insurance scores are indeed dropping, they have not dropped as steeply nor been as volatile as credit scores, and that is good news for the insurance industry, because it means that insurance scores are calibrated well enough that they don’t simply mimic credit scores. (Many people falsely equate the two.)

Ultimately, though, the insurance scoring debate will probably stick around for a long time to come, with neither side landing a fatal blow against the other. Part of the reason is that the two sides approach the issue from radically different places. The insurance industry’s arguments, which center around efficacy, accuracy and low prices, don’t hold sway with opponents, who think that there is some larger issue of fairness at stake.

Writing for the New Yorker, economist James Surowiecki notes that the FIRE economy–which stands for finance, insurance, and real estate–shrank for the first time in 16 years. “Since 1980, this sector’s share of the economy has grown by almost half. Now, apparently, the worm has turned,” says Surowiecki.

Looking at credit default swaps and mortgage-backed securities, it’s easy to understand how and why the finance and real estate markets are shrinking. And the insurance industry, of course, is so interconnected with those two that it was only a matter of time before it started to feel the pain as well, even if it wasn’t as reckless as its siblings in the banking and property sectors.

Surowiecki looks back at the last 10-20 year period as the “financialization” of our domestic economy, when Wall Street became an economic driver in its own right, as opposed to a follower. And that’s where things went wrong.

“Wall Street needs to recognize that its proper role is, as it has been in the past, to follow the real economy, rather than trying to drive it,” says Surowiecki. ” During the housing bubble, the financial sector essentially tried to create reality. Now’s the time for it to respond to reality instead.”