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How AI Might Turn the Insurance Agent-Customer Connection into a Dark Comedy

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In the swirling chaos of artificial intelligence (AI) infiltrating the insurance industry, there’s a subplot emerging. As AI takes its place on the stage, promising efficiency and innovation, there’s a risk that the once-harmonious relationship between insurance agents, insurance companies, and customers may be in for a twist and not necessarily the good kind.

We have always thought and promoted the idea that insurance is about relationships, building trust and educating clients on their risk. But changes are coming and we believe it is important to protect this trusted relationship, now more than ever, However, We thought it might be fun to see where AI might take us in the near future.  Enjoy the ride.

If AI Became Movie Titles

Lost in Translation

Picture this: a customer asks an AI-driven chatbot about coverage for three rental properties in three different states, and suddenly, they find themselves tangled in a web of algorithmic confusion. It’s like trying to teach your grandma how to use Snapchat – confusing, frustrating, and a little bit hilarious. Who knew insurance policies could be the punchline of a cosmic joke? An experienced agent can guide you through the process of making sure you get the coverage that is right for you.

The AI Apocalypse

While AI is making strides in understanding emotions, it still struggles with the subtleties of human feelings. It’s a bit like watching a robot attempt stand-up comedy – you appreciate the effort, but the delivery might be a tad mechanical. Customers facing tough situations may find themselves yearning for the soothing, empathetic tones of a real-life insurance advisor, not the calculated responses of a digital comedian. When you call a local agent you get a real person who lives and works in your community.

The Insurer Bot Uprising

Imagine being dumped by an insurance algorithm because you’re deemed too “risky” – it’s like being ghosted by a machine. The cold, algorithmic decisions might leave customers feeling like they’re stuck in a bad breakup movie. Agents can help you when there are issues involving, payments, claims or general service issues. 

Privacy Predicament

If George Orwell were writing about insurance in the age of AI, he might call it “1984.0: Big Data’s Revenge.” The fear of constant surveillance by algorithms could turn the insurance game into a paranoid comedy thriller. Cue the dramatic music as customers wonder, “Who’s watching me now?”. Insurance relationships should be built on trust.

The Liability Labyrinth

Who’s responsible when the AI-driven insurance messes up? It’s the insurance industry’s very own mystery thriller – “Whodunit: The Case of the Rogue Algorithm.” Picture insurance agents donning detective hats and customers playing the role of amateur sleuths. Spoiler alert: the butler did it, or was it the algorithm? Insurance agents are the first line of defense, we are on your side.

In this dark comedy, the insurance industry is navigating uncharted territory. While AI brings its own set of challenges, it also adds a touch of absurdity to the insurance game. As agents and customers waltz through this AI-driven circus, one thing is for sure – the insurance industry is gearing up for a blockbuster, and it’s leaving us all wondering if we’re starring in a comedy, a drama, or a tragicomedy of errors. Striking the right balance between technological innovation and the human touch is crucial to ensuring that the insurance industry’s evolution doesn’t come at the cost of a deteriorating relationship with its customers.

We hope you enjoyed the ride.

 

 

 

 

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What Kind of Businesses Need Professional Liability Insurance?

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If you’re a business owner, you spend most of your time thinking about how to grow your business. But it’s easy to remember one of the fundamental building blocks: professional liability insurance. What is it? Why do you need it? And what does it cover?

Why Does Your Business Professional Liability Insurance?

  • You may be sued.
  • You may be held responsible for your actions or the actions of someone who works for you.
  • If you give advice to customers, you might be sued.
  • You may be held responsible for the actions of other people on your property or in your building/office space.

What Does Professional Liability Insurance Cover?

Professional Liability Insurance can help protect you against claims of negligence. It covers legal costs in the event that a lawsuit is brought against you and can even cover damages or injury to third parties. It also helps pay for legal fees, and it will pay for your defense if you are found not guilty of any charges. Professional liability insurance can cover the costs of lawsuits over:

  • Work errors or oversights
  • Undelivered services
  • Missed deadlines
  • Budget overruns
  • Incomplete work
  • Breach of contract
  • Accusations of negligence

Who Needs Professional Liability Insurance?

Professional Liability Insurance protects professionals from claims and lawsuits. If your advice or work injures someone, or if they believe their property has been damaged by something you did, a claim can be made against you. Professional liability insurance helps protect you from these claims and ensures that your business stays protected. Firms like these should have professional liability insurance.

  • Accountants
  • Lawyers
  • Contractors
  • Consulting agencies
  • Real estate firms
  • Architects, designers, and engineers
  • Real estate brokers
  • Financial consultants
  • Accountants and bookkeepers
  • IT professionals and programmers
  • Marketing and advertising professionals

Conclusion

When you’re starting a business or running a current business it can be tempting to focus on marketing and sales. However, there are many other aspects of the business that you should be equally concerned about. Professional liability insurance is one of those aspects that need careful consideration because it will protect your business against lawsuits and negligence claims.

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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Prepare Your Business For The Future

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If your business survived 2020 and 2021, there is hope for the future. Having survived the past is a good indication that your business is strong and prepared for the future. But it is essential to understand that the risks of the past change and the risk your business faces will be different. It will be important to understand your future risk to have a strategic plan on how to analyze, manage and insure these new risks.

Trends That Are Not So Good

It is becoming more frequent for non-insurers to establish insurance firms. Some automakers now provide or even design their auto insurance packages to sell alongside the vehicles they produce.

Insurers rely on data to determine their coverage and price. This takes the relationship and uniqueness out of the process.

We believe it is vital to understand the uniqueness of each business, not lump them together.

More insurers are offering online insurance. So now, business owners will have to determine what coverage they need without any professional help. This will also allow insurers to limit coverage and even deny claims without the business having proper representation.

Future Risk Trends

Environmental, social and governmental activism

Businesses are becoming a target for many new areas of social and governmental influences. Make sure your insurance can address these issues.

Cyber liability

Did you know that the average business has a greater chance of having a cyber breach than it does of having a fire? It is true, and your business insurance policy most likely will not cover cyber liability losses. This new world of connected devices promises insights on which companies can base strategic decisions.

Economic uncertainty

The next few years will be a special time for most businesses. It will be important to understand how to design an insurance and risk plan that can respond to losses that allow your business to continue.

Supply Chain

Today’s complex business environment does not occur in a vacuum. Companies are interconnected networks with several internal and external stakeholders. As the business world grows more interconnected and dynamic, it’s critical that you have a thorough grasp of the risks to your day-to-day operations and are prepared to handle them. Business interruption losses can range from decreased sales to increased operating costs because of the loss of a crucial supplier to the loss of future revenue streams as a result of a disruptive incident.

New Work Environment

Agents and insurers may increase their relevance by providing specialized protections for remote workers and small home-based enterprises that reflect how people live and work today.

Final Thoughts

Businesses’ needs are not the same, and the insurance and risk solutions they are provided should match their individual risks. In order to ensure that the program that is tailored to each and every customer, agents should develop relationships and insurer analytics to better understand their customers’ risk exposures. Understanding the business’s needs and risks leads to a framework for providing better solutions to their customers.

 

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Is Insurance Your Only Option?

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We will be the first to say that certain types of personal insurance may not always be best for your needs. We believe each client is unique and therefore requires unique insurance solutions. But there is more to the process.

First, you and your agent need to talk about what your risks and goals are regarding the issues. Your agent should be able to help you identify all the risks and, only then, provide solutions.

Here is a good example

We recently had a client buy an older used car for one of their kids. After we reviewed the ACV value for the client, we recommended that he not purchase collision coverage. We told him to use the savings to put into an auto replacement fund. This will save the client hundreds of dollars over time.

Here are other kinds of insurance you may not need

  1. Universal life – Typically, term life insurance is going to be a better fit for you. Term life costs less, and you can take the premium difference and invest it yourself.
  2. Extended warranty plans – These are never a good idea. The warranty premiums are mostly commissions paid to the salesperson. Some credit card companies offer this protection if you make the purchase with their cards.
  3. Pet Insurance – Pet insurance usually is very limited in coverage and very costly.
  4. Insurance on outstanding credit card balances – This type of insurance can be costly, and there are a lot of loopholes to go through before any benefits are paid.
  5. Mini Storage Insurance – As long as you have homeowners or renters insurance, you don’t need to buy special insurance. Most policies have automatic coverage for property away from your primary premises. Call us for details and limitations.
  6. Rental car collision insurance – If you already have collision insurance from your personal auto insurance, you don’t need to buy additional insurance from the rental company.  However, opting for additional coverage could be worth the price if you don’t have collision insurance. But if you’re charging the rental to your credit card, it’s also possible to get coverage through them.
  7. Mortgage life insurance – This protects the bank, not you. If you were to die, the payout goes to the bank, not your family. You are better off buying term life insurance.
  8. Flight Insurance – This is completely unnecessary, as airline accidents are rare, and your life insurance policy should already provide coverage in the event of a catastrophe.
  9. 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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How Insurance Agents Can Deliver Wow Customer Service

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To ensure that your customers feel valued and appreciated, you need to provide wow customer service. Excellent customer service entails a number of traits. Today’s business climate is highly competitive. In terms of features, products agencies generally compete head-to-head. When things are too identical, the customer service and the agent’s ability to create a real relationship make the difference.

Here is what agent should do to build strong relationships

Place your clients’ needs above selling a policy.

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.

Educate don’t sell.

Your goal is to educate you so you can make informed decisions. The more they know, the better decisions they will make. It gives you better value out of your insurance.

Know your product or service.

You must know what you’re offering inside and out to deliver excellent customer service. Make sure you and your front-line employees understand how your products or services work. Be aware of the most often asked queries by consumers and know how to respond in a way that will satisfy them. Understand that there are not one size fits all insurance products.

Listen to your clients.

One of the most basic techniques of customer service is to listen. It entails listening to both what your consumers say and what they are communicating nonverbally. Keep an eye out for signals of dissatisfaction and pay attention to what they say directly to you.

Ask for feedback and receive it.

To make the feedback you receive from clients helpful in your customer care process, you must do something with it. Take the time to examine feedback regularly, find areas for development, and implement specific changes in your company.

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What’s Trending In Insurance For 2022?

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Changing consumer expectations, employment issues, supply chain issues, political unrest, and remote working will all have an impact on the insurance landscape in the coming year. Let’s look at some of our predictions for the most interesting trends that will emerge in the insurance industry in 2022.

2022 Predictions

  • When it comes to where and how to buy insurance, consumers will have more options than ever before.
  • Cyber-attacks will increase for both individuals and businesses in 2022.
  • Remote work will continue to grow in 2022.
  • More people will start home businesses, requiring a review of personal insurance coverage.
  • Advanced Driver Assistance Systems (ADAS) and linked vehicle technologies are on the rise.
  • 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.

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.

 

Which Insurance Agent Is Right For You?

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Selecting an insurance agent may be one of the most important things you do.  Every family needs a good accountant, financial planner, and insurance agent to be looking out after their interests.  However, in today’s world, it may be hard to move your thinking away from the idea that the lowest price is the best, to getting the best value for your dollar.

We want to offer you a fun way to learn why your agent is more important than your policy.  We do this in the “Dear Abby” format—except it is “Dear Perk.”

Dear Perk: What does an insurance agent do?  In addition, is one really needed?  From – Wondering Will.

Dear Will:  A good insurance agent will help you understand what kind of insurance you need, first by educating you, and then offering solutions specifically designed for your family.  An agent asks you questions like, “What keeps you up at night,” or “Tell me about your lifestyle?”  Without an agent, there is no one looking out after your needs. Your agent will be there for you in the event of a claim and can provide valuable advice to make sure you get the full value of your policy.

Dear Perk: Aren’t all insurance agents the same?  From – All The Same Sam.

Dear Sam: No, insurance agents come in many different forms.  I recommend independent agents who represent many different insurance companies.  They are familiar with all types of policies from different carriers in the marketplace, and will create a better value by selecting what is best for their clients and not just selling you what products they have on hand.

Dear Perk: Our family has been blessed with great jobs that have allowed us to afford many luxury items.  Do I need any special kinds of insurance?  From – Very Blessed Brian.

Dear Brian: There are some very specific kinds of insurance we might recommend to people who have a high net worth.  Of course, we would want to meet with you to ask a series of questions in order to educate you and create a personal insurance portfolio just for you. However, here are a few ideas to get you thinking about your insurance needs.

Have you considered:

  1. A personal umbrella policy. This coverage offers higher limits for people who desire to protect their wealth in the event of a serious claim.
  2. Insurance for collections. Many people have wine collections, art, jewelry,and other high-end items that need to be insured.
  3. Insurance for a second home. If you own a vacation or rental home it is important to have that insured.
  4. Loss of use coverage. In the event your home is damaged, and you need to move out during restoration, you need coverage for a hotel, food, and other expenses. These can be covered under your homeowner’s insurance.

These are just a few thoughts we have regarding the importance of your insurance agent. “We believe insurance is not a product, it’s a promise and a trusted relationship”.  Please make time to hire the right agent with whom you can build a trusted relationship.  Then follow their advice and direction.

 

 

What Is Your Value Proposition?

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Most business owners can see an insurance agent coming a mile away. Agents, that is not a good thing. Insurance buyers have created a defense mechanism that makes it hard for agents get through. The primary reason for this is agents are far too often just interested in selling a product, not providing a solution.  Business owners don’t want to feel like they are a number or that the agent is only there to make a sale. Business owners want to be understood, they want to be educated, supported, and they want a trusted advisor.

Here is what has become the “industries” value proposition

  • Save 10 percent 15 minute or less
  • It is so easy, even a caveman can do it
  • You name your price
  • It is so simple a lizard can guide you
  • We have a special gun, and it knows how to save you money

A value proposition is what makes your agency unique and explains why someone would want to do business with you.

One way an agent can help is to develop a value proposition. Your value proposition should go beyond the product pitch and go deeper into the why and how you are an agent. When you build your unique value proposition, you need to start with answering a few questions

  1. Who are your clients?
  2. How do you help your clients?
  3. What problems do you solve?
  4. Why are you different than other agents?
  5. What services other than insurance do you offer?
  6. Why would anyone do business with you?

These are not value propositions

  • We have been in business for 50 years
  • We are a third generation agency
  • We have more markets
  • We are local

Here is our value proposition

  • We listen to your needs
  • We place people before policies
  • Insurance is a promise, not a product
  • We would rather educate you than sell you
  • There is no one size fits all insurance product

The benefits of redefining your value proposition are that clients will see it and it will enable you to build longer more valued relationships.

Reichley insurance believes insurance is more than a transaction. Insurance involves a trusted relationship built on a promise to put people before policies. Our promise is to listen to you, identify your risks and provide solutions. Every employee has the heart of a teacher. Connect with us to experience The Reichley difference.

Perk Reichley and Bob Lilly

#insurance #riskmanagement #customerservice #busienssinsurance #selling #educating