Custom insurance policies
One of the most recent insurance trends is to provide custom insurance policies. What if I told you insurance companies and agents have been doing this for 40+ years. So what’s the deal?
In years past when you purchased an insurance policy, it was just that, no customization, zero, all policies were the same. Those policies had it all, everything from guaranteed replacement cost coverage, identity theft, building code, water back up, mechanical breakdown, all of it.
Yet, the market continued to demand less expensive insurance policies, all while the world got more expensive. In order to keep clients on the books, insurance companies changed to meet that demand. Insurance companies who stuck to their guns and provided amazing coverage and service suffered premium loss, and companies like Allstate, or Geico selling on price thrived.
Companies started to chop away at their base policy, then sell different levels of those packages, then finally allowed the policies to be customized by the agent, and now to the customer level.
Customized policies = less cost, so what’s the rub?
I love it. Good agents have already been doing this for their clients. It requires continuing education, discussion, and review of claims, and it helps that yours truly spent a few years in the field applying these coverages to real claims.
The rub comes when poorly educated agents, agents who are compensated on the number of policies sold vs metrics that take care of the client, or when customers who do not understand insurance shop direct with the focus on price.
While we might assume this scenario is far and few between, I am here to bust bubbles. Insurance companies are able to leverage the ignorance of their client base to sell less coverage and maintain their original price. ((Let me be clear, this is not some evil profit-seeking strategy, customers are demanding and switching insurance companies based on price, and what gets rewarded gets repeated)
What is the solution?
Not to tute our own horn but….Partnering with reputable, well-educated, and passionate insurance agents would be ideal. Of course, finding them can be difficult as massive direct-to-client insurance companies own the insurance space when it comes to Google and Facebook advertising. Yet if you are lucky enough to stumble upon one like TWG, developing a risk management relationship with our agents is an excellent start.
So long as we understand your concerns, risk tolerance, and needs, we are able to better customize these policies so that you are paying for what you need with the coverage you are looking for!