Should Insurance Technology Always Be Trusted To Predict Accurate or Fair Results?

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Insurance companies have relied on data to set their rates for years, but with the advent of advanced technology, insurers can now gather and analyze more data than ever before.  While the use of technology to set rates has its benefits, there are also several problems associated with this practice.

We will show you how an experienced agent can help you understand this technology and why it is important.  Many people are trying to push insurance into a commodity driven by technology and quick, cheap pricing.  We will continue to advocate the importance of personal relationships and how through these relationships, clients get the best combination of coverage price and service.  It is important to understand that insurance is not a product but a service.

Lack of Transparency

One of the biggest problems with insurers using technology to set rates is the need for more transparency in the process.  Insurance companies use complex algorithms to analyze vast amounts of data, and these algorithms are often proprietary and not subject to public scrutiny.  This lack of transparency can make it difficult for consumers to understand why they are being charged a certain rate or to challenge the accuracy of the data being used to set their rates.  Agents find it difficult to get answers to questions involving how this complex system process the data to get the final rate, therefor are not capable of explaining or encouraging modifications to behavior that are negatively affecting their insurance outcomes (cost or coverage).

Benefits Of Having An Agent

Agents can help you design an insurance program that includes deductibles, limits, and coverage that represents the risks you have.  If you understand what you are buying, then you have a better basis for determining the best pricing options.  Factor in now how their data is being used to align with cost & coverage models, carrier appetite for their specific risk issues, finding the soft dollars that benefit the client amidst the complete underwriting and rating systems used by carriers, and still being able to speak to a live person at the end of all this to influence the final decision regarding a particular risk and you have a very important advantage on your side.

Lack of Personalization

While technology can help insurers gather more data, it can also result in a lack of personalization in the insurance process.  Insurers may rely too heavily on data to set rates and overlook important factors that can affect an individual’s risk profile.  For example, a person with a safe driving record may be charged the same rate as someone with a poor driving record simply because they fall into the same demographic group.

 

Benefits Of Having An Agent

Your agent can ask you questions about your circumstances and work with you to determine what company and coverage is best for you.  With an agent, you have a friendly face to connect with when you have a question or need help with a claim.

Data Privacy Concerns And Unintended Consequences

The use of technology to gather data for insurance purposes raises serious privacy concerns.  Insurers are able to collect a vast amount of data on individuals, including information about their driving habits, health status, and online activity.  This data can be used to set rates, but it can also be used for other purposes, such as marketing or even denying coverage.  Additionally, insurers can gather more data on individuals.  In that case, it may lead to a situation where people considered high-risk cannot obtain insurance at all.

Benefits Of Having An Agent

An experienced agent will know what information is needed to get the best results and what is not necessary.  This will protect your privacy and give you the confidence to obtain the best coverage for your circumstances.

While technology can help insurers gather more data and set rates more accurately, there are several concerns associated with this practice.  Remember, an agent is on your side, your partner.  He or she will educate you and how to design insurance and risk solutions that fit your needs and limit the influence of certain technologies in your insurance program.

The modern independent agent serves two masters – the carriers they represent via a formal agency agreement and their clients, whom they owe a considerable duty of care in handling the information they are given and the benefit of the services we render.  We can’t just say we work for the clients; however, having this dual role gives us a unique difference between an independent agent and the direct writers who have no capacity to insert themselves into the claim conversations on behalf of their customers or use alternative markets that better match their needs.

Will Technology Replace Good Customer Service?

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Customer service has been an essential part of any business for as long as we can remember. It’s the backbone that supports businesses’ growth and keeps customers happy and satisfied. However, with the advent of technology, some have predicted that it will replace customer service altogether. However, we believe that technology will never replace good customer service, and here’s why. customer service requires a human touch. As much as technology has advanced, it cannot replicate human interaction. Customers want to feel valued and appreciated, and they cannot get that from a machine. When customers have a problem or an issue, they want someone to talk to, someone who can empathize with them and provide a solution that fits their needs. Technology cannot do that.

Customer service requires the ability to adapt and be flexible. Every customer is different, and their needs and wants vary. Sometimes, a customer may have a problem that is not in the company’s rule book or protocol, and they need a representative who can think on their feet and come up with a solution. Technology cannot do that because it is programmed to follow specific rules and protocols.

Customer service requires the ability to build relationships. Building relationships with customers is crucial for any business. It helps to foster loyalty and increases the chances of repeat business. A human customer service representative can build rapport with a customer, understand their needs, and recommend products and services that fit their needs. Technology cannot do that because it does not have the ability to read human emotions and understand their needs.

Customer service requires the ability to handle complex issues. Sometimes, a customer may have a complex issue that requires the attention of a specialist. A human customer service representative can transfer the customer to a specialist who can provide a solution to the problem. Technology cannot do that because it does not have the ability to understand the complexity of the issue and determine the appropriate specialist to handle it.

In conclusion, while technology has advanced and made many processes faster and more efficient, it cannot replace good customer service. Customer service requires a human touch, the ability to adapt and be flexible, the ability to build relationships, and the ability to handle complex issues. A good customer service representative is an essential part of any business, and technology can only enhance their abilities, not replace them.

 

How Agents Should Serve Their Customers

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In today’s fast-paced business world, providing excellent customer service is more important than ever. With so many options available to consumers, businesses must strive to provide exceptional service to keep their customers happy and loyal. Here are four keys to customer service that can help businesses stand out in a competitive marketplace:

Listen to your customers:

The first key to great customer service is listening to your customers. When customers feel like they are being heard and understood, they are more likely to become loyal customers. Make sure you are actively listening to your customers, whether they are complaining or praising your business. Respond to their concerns and provide solutions to their problems. This will show your customers that you value their feedback and are committed to providing excellent service.

Be responsive:

Customers expect businesses to be responsive to their needs. When customers reach out to your business, whether it’s through email, social media, or phone, respond as quickly as possible. Even if you don’t have an immediate solution to their problem, let them know that you are working on it and will get back to them as soon as possible. Being responsive shows that you care about your customers and are committed to providing excellent service.

Personalize your interactions:

Customers appreciate personalized interactions with businesses. When you personalize your interactions, you show your customers that you care about them as individuals, not just as customers. Use your customers’ names when you communicate with them, and remember their preferences and past interactions with your business. This will help you provide a more personalized experience that will make your customers feel valued and appreciated.

Go above and beyond:

To truly stand out in the marketplace, businesses must go above and beyond to provide excellent customer service. This means anticipating your customers’ needs and providing solutions before they even ask. It also means providing unexpected perks and rewards to show your customers that you value their business. Going above and beyond can help you build strong relationships with your customers and turn them into loyal advocates for your business.

In conclusion, providing excellent customer service is essential for businesses that want to stand out in a competitive marketplace. By listening to your customers, being responsive, personalizing your interactions, and going above and beyond, you can create a customer service experience that will make your customers feel valued and appreciated.

Some Good Insurance Related Questions

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We recommend asking your agent a series of questions to better understand what your insurance covers and does not cover.  We know how hard you’ve worked to turn your house into a home. Since your home is one of the most important financial investments of your lifetime, you’ll need proper coverage in order to keep your investment protected and provide your family with the guarantee that they’ll always be safe and sound.

Ask These To Your Agent

  • Do you hold any insurance designations?
  • What happens when we have a claim?
  • What is your agencies core values?
  • Will you offer more than one kind of solutions?

We offer coverage options that are both flexible and affordable and will work with you on an individual basis to find a policy that best suits your needs. Our team is dedicated to providing the assurance that your family and your possessions are secure.

  • Do I need a personal umbrella? What does it cover?  What limit should I have?
  • I drive for a ride-share company. How am I covered?
  • What is replacement cost coverage, and why is it important?
  • What happens if I rent a car and go both domestically and abroad? What coverage would my insurance have?
  • My homeowners’ deductible, what is it? How would it be waived? When did I most recently file a homeowners claim?
  • What would happen if my house was destroyed completely? Could I instead use the cash value of my policy?
  • My house is old. Would my insurance pay to rebuild my house to current building codes, or would I be responsible for that cost?
  • I have a wine collection; how is that covered?
  • I just constructed an outdoor kitchen, is this automatically covered? If not, what do I need to do?
  • Can I receive any credits for combining my home and auto insurance together?
  • What is flood insurance exactly? Or an earthquake occurrence? Does my insurance cover these incidents? If not, should I add coverage?
  • I employ a housekeeper.  What if they had a work-related injury?
  • Am I potentially liable for their lost wages and rehabilitation? What if I’m sued by my employee?
  • What if I misplace my jewelry?
  • I serve on boards for both for-profit and not-for-profit organizations. Will a claim made against me be covered by my own insurance?
  • How much would my automobile be worth if it were a total loss? How, if at all, would the deductible apply?
  • I recently started a home business. Does my homeowner’s insurance provide any coverage?
  • When should I include my kids in my auto insurance policy? When should they be removed?

While the massive national agencies spend millions on television ads and offer barebones policies, they do not know you. When your needs change or your situation complicates, you don’t want an automated phone tree or cold cyber-agent. You want to talk to compassionate, honest insurance experts, close to home, right here in Beavercreek, OH – that’s our team. You shouldn’t have to spend hours researching and comparing policies. Let the specialists at Reichley guide you through the complex insurance industry.

Call today to alleviate the worry and get covered – (937) 429-0655.

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Why We Place Importance on Customer Service

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In a world that’s being changed rapidly by technology, it only makes sense that the same is happening with customer experiences. As we progress forward with new, innovative developments from telephones to computers to the internet to social media, the insurance industry has adapted, too. Today’s customer experience is giving customers more power. They get to control how, when, and where they interact with service representatives.

Why Good Customer Service Is Vital To Agency Stability

73% of business leaders report that there is a direct link between their customer service and overall business performance. In addition, 64% of business leaders say that customer service has a positive impact on their growth.

Customers want a personalized experience. When someone reaches out to your team, they want to be treated like a person, not a number. They want to feel like their issue is important and that your agent cares deeply about solving their issue. It shouldn’t feel like your team is applying a one-size-fits-all approach to every customer interaction. Since every support case is a little different, each one should be treated as such.

What Good Customer Service Can Do For Your Business

  • Boosts employee retention
  • Reinforces company brand and values
  • Creates satisfied customers
  • Proactively addresses customer issues

 How to Improve Customer Service

  • Respond to customer’s needs quickly
  • Know your products and services
  • Listen first
  • Keep your promises
  • Ask a question to clarify issues
  • Say thank you
  • Ask for feedback

In today’s highly competitive business environment, there’s a constant and never-ending struggle that every entrepreneur must face. Those who can adapt will survive and thrive, resulting in near-boundless financial success and market saturation.

While the massive national agencies spend millions on television ads and offer barebones policies, they do not know you. When your needs change or your situation complicates, you don’t want an automated phone tree or cold cyber-agent. You want to talk to compassionate, honest insurance experts, close to home, right here in Beavercreek, OH – that’s our team. You shouldn’t have to spend hours researching and comparing policies. Let the specialists at Reichley guide you through the complex insurance industry.

Call today to alleviate the worry and get covered – (937) 429-0655.

 

Why You Need An Insurance Agent?

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If you’re too young to remember a world without the Internet, you’ve probably asked yourself this question at some point. Similarly, you may have questioned the necessity of a travel agent, a piano instructor, or a bookstore. Everything they offer is available online. But do you really need an insurance agent?

Dealing with an agent who takes the time to get to know their clients and explain choices gives the buyer a sense of confidence and the peace of mind that things will be taken care of if something happens. It can be challenging to understand the implications of an insurance purchase.

Although most clients won’t suffer a claim event, everyone should feel more at ease knowing that they have a well-thought-out plan and coverage program that would respond if one were to happen. They need to have access to persons who they can consult with for advice as necessary in that strategy.

Agents do more than collect price quotes. Yes, we understand that cost is likely your concern. Who, after all, has extra funds for something they hope they will never use? But insurance agents have the training and experience to help you comprehend all the different things that could go wrong and why the cheapest option may not be the best.

An independent insurance agency represents you, the client, in locating the best coverage at the most affordable price. This may include your home, automobile, apartment, condominium, and business coverage. Insurance policies are not products that can be purchased from a store’s shelves, so “shopping” is not the most inclusive term.

Independent insurance agencies have access to various insurance carriers. Truly diversified agencies, such as ours, have relationships with multiple carriers. In addition, some of these insurers will only work with insurance purchasers through an agency. Therefore, if you shop for insurance on your own (which we do not recommend), you will miss out on some of the best options available today.

There is still a human desire for social interaction, and the value you provide cannot be replicated in the digital world.

Give us a call today and let us know how we can serve you.

How To Find A High Value insurance Agent

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When searching for the right commercial insurance agent for your business, you should find someone who focuses not only on providing excellent coverage but also on providing excellent customer service. They serve as an additional business partner to assist you in enhancing your business operations.

If you are a small business owner seeking a new insurance policy for your company, we have included some information on how we can assist you in selecting the policy that best meets your company’s needs.

There are two prevalent types of insurance agents: captive and independent. A captive agent represents a single insurance company and can only sell policies from that company. An independent agent is not limited to a single carrier; therefore, they are able to shop around for you with multiple carriers and assist you in obtaining coverage for all the different types of insurance your business requires.

What To look For In Your Agent?

  • Provides information
  • Offers solutions other than insurance
  • Discusses risk management
  • Has a professional team
  • Understands your ‘business
  • Value customer service

How can you tell if your commercial insurance agent is looking out for your best interests? The first thing to observe is whether they ask numerous questions to better assist your business. In addition, they will follow up with multiple (not just one) solutions for all your coverage needs and give you options that fit your business and budget.

 

 

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When Is A Good Time To Cal My Agent?

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We strongly believe in developing relationships with our customers. Insurance is not a product; it is a trusted relationship between the agent, insurer, and customer. We are always ready and willing to help you better understand your insurance and help with any questions you may have.

The Value of Your Local Independent Agent

  • Local independent insurance brokers can tailor your insurance coverage to your specific needs because they work directly with you and the insurance companies.
  • Insurance is what independent insurance agents live, think, and breathe. Because it’s their business, they’ll be able to explain any problematic policies or rate adjustments in a way you can trust. They’ve dealt with a variety of insurance providers throughout the years and are familiar with how each one operates.
  • Because your independent insurance agent is not employed by an insurance business, he or she is referred to as “independent.” They work with a variety of insurance carriers, but they are mostly focused on you!

Good Reasons To Connect With Your Agent

  • If you no longer live in your covered house, please contact us; your policy will need to be revised or amended to reflect this change.
  • If you purchase or receive new valuables such as jewelry, antiques, art, or collectibles, contact your insurance company to ensure you have adequate coverage.
  • You make the decision to work from home (home-based business). A basic business insurance policy might be necessary to protect you and your new venture.
  • You may need to make adjustments to your home insurance coverage if the people who live with you or in your home change. Your auto insurance rates may be affected by changes in your household.
  • Significant renovation or additions to your property will almost certainly necessitate a change in the amount of dwelling coverage on your home insurance policy.
  • Insurance is required for vacation homes, cabins, rental properties, hunting land, and leased property. Please contact us if you are interested in purchasing a new property or making changes to an existing one.

If you have any questions about your insurance, please call our office; we are here to help.

There Is No One-Size-Fits-All Insurance Policy

While the massive national agencies spend millions on television ads and offer barebones policies, they do not know you. When your needs change or your situation complicates, you don’t want an automated phone tree or cold cyber-agent. You want to talk to compassionate, honest insurance experts – that’s our team. You shouldn’t have to spend hours researching and comparing policies.

 

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Our Mid-Year Insurance Outlook

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It is essential to understand how the insurance market works and what the future looks like. In doing so, business owners and families can better plan for the future. Here is our brief overview of the insurance market as of August 2022.

The widespread use of vaccines and the relaxation of pandemic-related restrictions in 2021 served as significant accelerators for economic recovery by restoring public and corporate confidence. But that has been changed by increased inflation in 2022. But the conflict between inflation and  COVID-19 is far from ended, and there will probably always be some ambiguity. Could this harm the outlook for the insurance sector in 2022 and 2023?

According to our research, insurers anticipate more rapid growth in the coming year despite lingering COVID-19 worries.  However, non-pandemic issues with legislation, talent, supply chain issues, increased construction and auto repair costs, sustainability, and changing consumer preferences could provide roadblocks, causing premium increases.

On a more fundamental level, many carriers may think about taking action to increase stakeholder trust to increase customer retention and profitability. Greater transparency in the way insurers gather and use personal data may help to achieve this. They can also take a more proactive approach to find all-encompassing answers to pressing social issues, such as reducing the financial toll of upcoming pandemics and filling coverage gaps for natural disasters.

There are many actions people and businesses can take to minimize the impact of premiums or rate increases. These include.

  • Increasing deductibles.
  • Have your agent perform an insurance audit of your insurance program.
  • Make sure your property values are correct.
  • Considering self-insurance where prudent.

Give us a call for more information.

While the massive national agencies spend millions on television ads and offer barebones policies, they do not know you. When your needs change or your situation complicates, you don’t want an automated phone tree or cold cyber-agent. You want to talk to compassionate, honest insurance experts, close to home, right here in Beavercreek, OH – that’s our team. You shouldn’t have to spend hours researching and comparing policies. Let the specialists at Reichley guide you through the complex insurance industry.

Call today to alleviate the worry and get covered – (937) 429-0655.

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Is There Such A Thing As Normal Risk?

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2020 and 2022 have shown us that the normal we have known is no more. Business owners must think outside the box when it comes to their risk and insurance programs. This is a call to agents to educate themselves and create meaningful relationships and to customers to look for an agent who creates value, not just provides low-cost insurance.

It is important that agents and customers look at the future of risk and design a program that addresses the risks ahead. Buying a standard insurance product may not manage the changing risk profile.

Our Top Risk Issues For 2022 And Beyond

  • Product reinvention will be accelerated if supply chain and inventory management risks are sustained.
  • Electric and self-driving vehicles will continue to emerge for both business and personal use.
  • COVID-19’s disruption of supply networks is expected to last well into 2022. However, with the reinvention of traditional freight and cargo insurance products, the related business disruptions and frustrations may be alleviated.
  • Cyber Risk. It’s understandable that small business owners are concerned about cybersecurity threats; in 2021, 46% of cybersecurity breaches will affect small enterprises.
  • More people will start home businesses, requiring a review of personal insurance coverage. This will require adjustment in what kind of coverage people and local businesses may require.
  • Finding talent to fill key positions. Almost every company is dealing with talent shortages and the need to invest in technological infrastructure and capabilities to effectively engage remote employees, manage distributed workforces, and serve consumers on their terms.

Recommended Actions

  • Start the renewal process early with your agent.
  • Collect precise information on your risk with your broker. This will help you stand out in the crowd.
  • Use an agent that desires to build a relationship and provide education on your risk and how best to manage it.
  • For commercial accounts, address loss control advice and talk to your underwriters about your efforts. Underwriters appreciate proactive loss management because it displays a commitment to risk mitigation.

Many business owners place a high priority on acquiring the correct insurance, yet most of them forget to examine their policies regularly. Small businesses need to stay in touch with their independent agents more than ever before, and they can rely on their knowledge to assist them in overcoming business risks.