This article is a continuation of our series on creating a new way of thinking about insurance. As you consider your business insurance, we invite you to think about this subject in the much larger spectrum of “Total Cost of Risk”. Your insurance program is more the premiums you pay
Total Cost of Risk is the sum of the costs arising from all of the risks faced by an organization. Risks can generally be categorized into one of the following three classes:
Operational– Operational Risk includes the cost of products, protection of property, insurance, damage to or destruction of supply sources for key raw materials, components, or services, injuries to employees or outside parties, damage to the property of outside parties including resulting consequential loss, damage to the environment, and employment decisions.
Financial– Financial Risk includes risks associated with commodity price variability or commodity availability, costs of capital and borrowing, customer credits, business development, profit and banking costs.
Strategic– Strategic Risk includes issues of risk that can have a major impact on the overall viability of an organization. These include issues centering on reputation of the organization or its employees, loyalty to the organization of customers or clients, development of new products or services, meeting the demand for existing products or services, and pricing of the organization’s products or services.
When you consider all your risks, it is important to understand how a well-designed insurance program can impact all these areas.
Change your Thinking About Insurance
Most businesses only look at their premiums when they evaluate insurance costs. We would like to provide an alternative view. For example, by only considering insurance premiums you are eliminating many other factors in your total insurance costs. Here are factors that make up your total cost of risk.
- Internal Risk Administration
- Legal and Claims Expenses
- Deductible Costs
- Uninsured Loss Costs
- Safety Program Costs
- Insurance Premiums
- Contracted costs
Next up; we will review each of the cost of risk areas and how they impact your overall insurance program.
Do You Want To Avoid Unhappy Customers?
/in AgentDoes anyone like having an unhappy customer? Do you really like having to deal with a frustrated client? I do not; and I try really hard not to have them. According to customer service experts, customer satisfaction, or should I say un-satisfaction, can be boiled down to these areas:
In one survey by the Better Business Bureau serving Chicago and Northern Illinois, researchers found 30% of unhappy customers will simply move their business.
How To Improve Customer Satisfaction
Stop selling and start solving problems — It is easy to sell a client an insurance policy, but that may not always be the best for the client. There are other solutions like self-insurance, contractual transfer, or even a modified policy with high deductible.
Focus on personal service – Take care of your customers like they are real people; because they are. Listen with understanding and sympathy. The customer’s first impression of you is all important in gaining co-operation. You can do this by acknowledging not just the facts of the situation, but also acknowledging how the situation made them feel. For example, “It must have been frustrating for you to bring home our product only to realize it wasn’t the right model for your needs.”
Take responsibility — Never, ever blame or make excuses. Instead, take full responsibility and the initiative to do whatever you can to solve the problem as quickly as possible.
Always give your customer options — Never limit your solution to just a quick insurance fix. Ask questions to get to the issues, and then offer more than one alternative.
Show them, don’t tell them –– Present the solution, or option, to the client and then show them how you will respond. The sooner you deliver on the solution you promised, the quicker you’ll be creating another friend of your business.
We all want happy clients, but it does take work. A happy client is a happy business! GO win the day!
What Does Outstanding Customer Service Look Like?
/in Agent, InsuranceHave you left a business and thought, “How are they even in business”? Or have you gotten off the phone and said, “They don’t understand or care about my needs or even respect me”? We have had those experiences, and we don’t ever want any of our customers to feel that way about our firm.
Outstanding customer service can mean something different to each person. However, we believe there is a basic underlying attitude of a firm that provides outstanding customer service. We would like to share our thoughts on what our firm believes contributes to outstanding customer service. Outstanding customer service is a mindset that we want every employee to have.
We practice three basic principles when relating to clients: empathy, appreciation and helpfulness.
Here are other guiding principles that every agency should live by
Insurance is not a product. It is a promise and a trusted relationship. Here at Reichley Insurance Agency, we are not going to sell you something you don’t need. We want to talk to you, determine your needs, and get you covered at the right price.
Five Things to Do Before You Start Your New Business
/in Agent, InsuranceThe latest news from the Small Business Administration is that only 60% of new businesses survive at least 2 years. Of that 60%, only 44% survive another two years. It is a fact that more small businesses fail then succeed. The two main reasons for failure are lack of planning and funding. While we can’t help with the funding part, we can offer some ideas about new business planning.
We found at least five things entrepreneurs should consider as part of their development process. We understand there are more, but this is a good start.
Insurance is not a product. It is a promise and a trusted relationship. Here at Reichley Insurance Agency, we are not going to sell you something you don’t need. We want to talk to you, determine your needs, and get you covered at the right price.
Good luck and call us with any questions so we can help you achieve your goals!
Insurance & Risk Best Practices
/in Agent, InsuranceWhat Large Companies Do To Lower Costs That Any Company Can Do
As we continue on our journey to a better understanding of insurance, we thought it would be informative to identify some risk management “best practices” of larger companies. We believe that many of these “best practices” can, and should, be discussed with businesses of all sizes.
The good news is that these generally don’t create additional costs to the company; in fact, they usually reduce costs!
Insurance & Risk Best Practices
At Reichley Insurance, our employees are committed to developing ongoing communication with our clients and striving to exceed your expectations. You are not buying a product; you are managing your risk. Remember, insurance is not a product; it’s a promise and a trusted relationship.
Cost of Risk Part Two
/in Insurance“Total Cost of Risk” is the sum of the costs arising from all classes of risk faced by an organization. Insurance is one component of a risk management strategic plan that protects your assets. There are many benefits to this new approach.
Benefits of a total cost of risk approach
Total Cost of Risk
The key is there are ways to lower costs in each of these areas that don’t have anything to do with insurance. Having a trusted advisor who can help you evaluate this will serve you well in the long run.
Do You Know Your Cost Of Risk?
/in UncategorizedThis article is a continuation of our series on creating a new way of thinking about insurance. As you consider your business insurance, we invite you to think about this subject in the much larger spectrum of “Total Cost of Risk”. Your insurance program is more the premiums you pay
Total Cost of Risk is the sum of the costs arising from all of the risks faced by an organization. Risks can generally be categorized into one of the following three classes:
Operational– Operational Risk includes the cost of products, protection of property, insurance, damage to or destruction of supply sources for key raw materials, components, or services, injuries to employees or outside parties, damage to the property of outside parties including resulting consequential loss, damage to the environment, and employment decisions.
Financial– Financial Risk includes risks associated with commodity price variability or commodity availability, costs of capital and borrowing, customer credits, business development, profit and banking costs.
Strategic– Strategic Risk includes issues of risk that can have a major impact on the overall viability of an organization. These include issues centering on reputation of the organization or its employees, loyalty to the organization of customers or clients, development of new products or services, meeting the demand for existing products or services, and pricing of the organization’s products or services.
When you consider all your risks, it is important to understand how a well-designed insurance program can impact all these areas.
Change your Thinking About Insurance
Most businesses only look at their premiums when they evaluate insurance costs. We would like to provide an alternative view. For example, by only considering insurance premiums you are eliminating many other factors in your total insurance costs. Here are factors that make up your total cost of risk.
Next up; we will review each of the cost of risk areas and how they impact your overall insurance program.
What a Customer Centered Renewal Looks Like
/in AgentOur agency is founded and run on the philosophy that client’s needs come first and foremost. We know you hear that a lot, so we wanted to tell you how we carry out our philosophy day to day. This article is the continuation of our series on how to think differently about insurance.
Previously, we have encouraged you to think differently about the insurance buying process. In this article we wanted to give you an idea of what a customer centered insurance renewal looks like. A Customer Centered Agency considers the customer in everything it does; from product and service development to the entire customer experience. A Customer Centered Agency also speaks to its customers in English, not insurance talk, and makes it easy for customers to do business with the agency.
Customer Centered Insurance Renewal
These are Reichley Insurance Agency’s highest priorities. Achieving these priorities enables both collective and individual success, and thus fulfills our mission.
Let Us Say, “Ask Not What The Client Can Do For The Agent, But What The Agent Can Do For The Client”
/in UncategorizedThis article is a continuation of our series on how to think differently about insurance.
We want to continue our revolution regarding customer service by talking about just what clients should expect from their agent. We ran across this statement and truly believe it, “If all your agent does is place your policy, then they are overpaid”.
We use phrases like “people before policies”, “listen to your needs”, and “Your dedicated team of experts”. These words have meaning to our entire team and are carried out in every conversation with our clients.
Here are some of valued added services every agent should be providing:
At Reichley Insurance, our employees are committed to developing ongoing communication with our clients, and striving to exceed your expectations. You are not buying a product; you are managing your risk. Remember, insurance is not a product; it’s a promise and a trusted relationship.
Communication Is key to Any Relationship
/in UncategorizedThis article is a continuation in our series on how to think differently about insurance.
We live in the greatest age of communication. Today there are more ways to connect with each other than any other time in history. For example, we have access to personal cell phones, email, web pages, videos, social media, traditional mail and more. So why don’t you and your independent insurance agent communicate more often? And, when you do communicate with your agent, what kind, and how much, communication is valuable to the agent/client relationship? Reichley Insurance is attempting to create a new way of thinking about the agent/client insurance relationship.
Let us start by asking and answering the following question, “What kind of communication and service are you getting from your agent”? If all your agent does is send you a policy and an invoice, then your agent is way overpaid. There is so much more that an agent shouldbe doing to educate and serve you. Here are a few examples of what our agents at Reichley Insurance do:
Recent J.D. Powers & Associates.com score study found consumers find agents easier to use than a black-box 800 number or a website, and still prefer to finalize their purchase through an agent whom they can visit or call. In today’s cyber world, an agent should provide that desired personal touch. At Reichley Insurance, our employees are committed to developing ongoing communication with our clients, and striving to exceed your expectations.
Why Relationships Matter
/in AgentThis article is the continuation of our series on how to think differently about insurance. The relationship between you and your agent is the most important part of insurance and risk management process. Your agent’s ability to serve and understand you will impact everything else.
People Before Policies
Reichley Insurance is in the business to meet people’s and business’s needs. We don’t ever just sell you a product. We create and deliver personal and business solutions that address your individual needs, and sometimes that may not include any insurance if it is not in your best interest. Our belief is that by doing what is best for you… we will also benefit.
Education
Smart and informed buyers are the best buyers. We want you to be informed insurance buyers. Our goal will be to educate you on “trending” issues that are important to your family and business.
Relationships Matter
Partnerships are built on trust over time. Our goal is to be viewed by our clients as a trusted partner. If an accident or disaster strikes, Reichley customers can contact our agency staff 24/7 and work with our trusted team. We partner with only the most respected and trusted insurance companies.
We Listen To Your Needs
Unlike some big national firms, we don’t have a set of scripted statements to give to you. We listen to what you are saying and then respond accordingly. We ask the right questions to find the individual insurance solution for you.
We Have a Team of Experienced Professionals
We know and understand your industry. Before we do anything, we take time to get to know you. Our staff has a deep understanding of how insurance works and we continually seek training and education. Our team has over 150 combined years of experience.
These commitments result in the highest of customer satisfaction and confidence. They are Reichley Insurance Agency’s highest priorities.