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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.

What Are The Basic Services Your Agent Should Provide?

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As an insurance agent, there are several essential services you should provide to your clients. Here are five important services that insurance agents typically offer:

Policy Evaluation and Recommendation:

Insurance agents should assess their clients’ insurance needs and evaluate their current policies. They can then provide recommendations for appropriate coverage based on the client’s specific requirements, ensuring they have adequate protection and are not underinsured or overpaying.

Policy Selection and Enrollment:

Insurance agents assist clients in selecting the most suitable insurance policies from the available options. They explain the terms, conditions, and coverage limits, helping clients make informed decisions. Agents also handle the enrollment process, ensuring all necessary paperwork is completed accurately and efficiently.

Claims Assistance and Support:

When clients need to file an insurance claim, agents play a crucial role in providing guidance and support throughout the process. They help clients understand the claim procedure, gather necessary documentation, and communicate with the insurance company on their behalf. Agents act as intermediaries, advocating for their clients’ interests to ensure a smooth and fair claims settlement.

Policy Review and Updates:

Insurance needs can change over time due to various factors such as life events, business growth, or regulatory updates. Insurance agents should regularly review their clients’ policies to ensure they remain aligned with their evolving needs. They provide recommendations for necessary updates, such as increasing coverage or adjusting deductibles, to ensure ongoing protection.

Risk Management and Loss Prevention:

An essential service of insurance agents is assisting clients in identifying potential risks and implementing risk management strategies. Agents may conduct risk assessments, provide safety guidelines, and suggest loss prevention measures to mitigate potential losses. This proactive approach helps clients minimize risks, prevent accidents or damages, and ultimately reduce the frequency or severity of insurance claims.

It’s important to note that the specific services provided by insurance agents may vary based on their expertise, specialization, and the type of insurance policies they offer.

Five Things Your Agents Needs To Be Doing Now?

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As an insurance agent, there are several important tasks you should be prioritizing to ensure you provide excellent service to your clients and stay ahead in the industry. Here are five things you should be doing:

Staying Updated with Industry Changes: Insurance is a constantly evolving industry, with new regulations, products, and market trends emerging regularly. It’s crucial to stay informed about these changes to effectively advise your clients. Keep up with industry publications, attend seminars or webinars, and participate in relevant professional development programs.

Engaging with Clients: Building strong relationships with your clients is key to retaining their business and earning their trust. Regularly reach out to your clients to provide updates, answer questions, and review their coverage. Use various communication channels, such as phone calls, emails, newsletters, or even social media, to stay connected and address their insurance needs.

Conducting Policy Reviews: Policies should be periodically reviewed to ensure they still meet your clients’ needs. Take the initiative to assess their coverage, identify any gaps or overlaps, and recommend appropriate adjustments. By conducting policy reviews, you demonstrate your commitment to your clients’ financial well-being and showcase your expertise.

Embracing Technology: The insurance industry is embracing digital transformation, and as an agent, you should too. Utilize technology tools and platforms that streamline your processes, such as customer relationship management (CRM) systems, document management software, and online quoting platforms. Embracing technology not only enhances your efficiency but also improves the overall client experience.

Continuing Education: Professional development and continuing education are vital in the insurance industry. Stay updated on the latest insurance products, risk management techniques, and sales strategies. Pursue industry certifications, attend workshops or conferences, and engage in relevant training programs. This ongoing education will keep you well-equipped to serve your clients and differentiate yourself from competitors.

Remember, these five activities are just a starting point. To be a successful insurance agent, it’s essential to adapt to changing market dynamics, foster strong client relationships, and consistently improve your knowledge and skills.

Low Cost Insurance Is Not Better Insurance

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Insurance is a necessary expense for many people. Whether it’s health insurance, car insurance, or home insurance, having coverage can give you peace of mind and protect you from financial ruin in the event of an accident or unexpected event. However, not all insurance policies are created equal, and opting for the cheapest option may not always be the best choice. In fact, cheaper insurance is often not better insurance. Here are some reasons why.

Lower Coverage Limits

One of the main ways insurance companies can offer cheaper rates is by offering lower coverage limits. Coverage limits are the maximum amount of money an insurance company will pay out for a claim. If you opt for cheaper insurance, you may be getting lower coverage limits, which means you may not be fully covered in the event of a major accident or unexpected event. This can leave you with significant out-of-pocket expenses that you may not be able to afford.

Higher Deductibles

Another way insurance companies can offer cheaper rates is by increasing the deductible – the amount of money you must pay out of pocket before your insurance coverage kicks in. While a higher deductible can lower your monthly premium, it also means you’ll have to pay more out of pocket before your insurance company starts covering the cost of damages. This can be a burden, especially if you’re already struggling to make ends meet.

Exclusions and Limitations

Cheaper insurance policies may also come with exclusions and limitations that can limit your coverage. For example, some health insurance policies may exclude coverage for pre-existing conditions or limit coverage for certain medical treatments. Car insurance policies may exclude coverage for certain types of accidents or limit coverage for damages to your vehicle. These exclusions and limitations can leave you with significant gaps in coverage that can leave you vulnerable to financial loss.

Poor Customer Service

Cheaper insurance policies may also come with poor customer service. Insurance companies that offer cheap rates often need more resources to invest in customer service, which can lead to long wait times, unhelpful representatives, and delayed claims processing. This can be frustrating and stressful, especially if you need to file a claim in a hurry.

In conclusion, while it may be tempting to opt for the cheapest insurance policy available, it’s important to consider the potential drawbacks of doing so. Cheaper insurance policies may offer lower coverage limits, higher deductibles, exclusions and limitations, poor customer service, and less comprehensive coverage. Instead, it’s important to shop around for insurance policies that offer the right balance of coverage and affordability. By doing so, you can ensure that you’re fully protected in the event of an accident or unexpected event without breaking the bank.

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

/in , , ,

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.

Three Ways Agents Add Value To The Insurance Relationship

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Insurance agents came in al different sizes and shapes. We have learned over the years that insurance is not a product but a relationship. In order for your agent to help educate you and find the best solution these three communication techniques must be in place.

  1. Active listening: Active listening is an essential customer service skill. It involves listening to the customer’s concerns and needs attentively and demonstrating empathy towards their situation. This helps in building trust and rapport with the customer, and they are more likely to be satisfied with the interaction.
  2. Prompt response: Customers expect prompt responses to their queries and complaints. It is essential to respond to customer inquiries quickly and efficiently. This can be done by providing multiple channels of communication, such as phone, email, live chat, and social media, to ensure that customers can reach out to you in their preferred mode of communication.
  3. Personalization: Personalization involves understanding the customer’s preferences, needs, and history with the company. This helps in creating a customized experience for the customer, which makes them feel valued and appreciated. Personalization can be done by addressing the customer by their name, offering personalized recommendations, and tailoring the communication to suit the customer’s preferences.

By implementing these three top customer service methods, businesses can create a positive customer experience, leading to customer loyalty and repeat business.

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.

Insurance Mistakes

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There are a number of common mistakes some businesses make when it comes to purchasing commercial insurance. Insurance is the product you buy in case the unexpected happens. Unfortunately, by the time you need it, it’s too late to make sure you have the right type and amount of insurance coverage. Make sure you don’t make the following mistakes while buying insurance.

Mistake One

Having two agents is better because they keep each other competitive.

Having two agents duplicates effort and can create coverage gaps. For example, there are certain coverage’s that can be included under a liability policy and auto policy. One agent is better able to manage your entire insurance program.

Mistake Two

The lower the premium, the better.

Premiums are determined by a combination of exposures and coverage. If you get a lower premium you may be missing needed coverage. For example, does the lower premium include replacement cost coverage on buildings and equipment?

Mistake

Buying from a national company is always better.

Don’t listen to the entertaining advertising on TV. Most national agents only represent one insurance company. They can’t shop your account to determine the best combination of price and coverage.

Mistake

The internet is a great place to get good insurance deals.

Low cost internet insurance usually allows you to select the coverage and limits you want. But in most cases you end up with a limited and inadequate program. You find this out after you have an uninsured claim.

Mistake

Umbrella insurance is only high net worth companies or individuals.

A small electrical contractor was at fault for the total loss of a historic property, a loss that exceeded his general liability policy. The contractor’s umbrella paid the loss in excess of $7,000,000. Umbrella or excess coverage is some of the least costly insurance you can buy. Don’t risk a loss for a little expense.

Mistake

I don’t need employement liability insurance; I only have five employees, and they are like family.

This is the fastest-growing area of litigation for small businesses. The average claim cost in 2022 was $95,000.

Mistake

Not knowing what is in your policy.

Consumers’ biggest mistake is not knowing what’s in the fine print of their policies. Take time to read the policy. Ask your agent to meet with you at least annually to review your coverage.

Mistake

Flood insurance is only for businesses in high-risk areas.

Big mistake; we recommend you ask for a flood quote to at least review the cost-benefit of the coverage.

Mistake

There isn’t anything I can do to manage my insurance costs except shop price.

There are many things you can do to reduce your premiums; here are a few:

  • Consider increasing your deductibles.
  • Consider the vehicle model when making a purchase; some are more expensive to insure.
  • Add smoke and security alarms.

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.

 

 

 

risk

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.