What is Going on? Part 3 of 3
If you’ve read parts 1 & 2, you’ll see that I have been speaking about the pressures that are causing insurance premiums to rise significantly. And, that while insurance is a product we would prefer not to ever use, when and if the time comes, it’s an extremely valuable product to have.
I can make a strong argument that the insurance industry is one of the most important industries in our economy. Those of us who have worked in the industry understand the magnitude of the dollars that are quickly allocated to people in need. No, the industry is not perfect, but it’s pretty darn effective and efficient. JD Power annual Insurance Claim Study is a good indication of our effectiveness. Insurance companies constantly earn pretty high marks for their claim service by comparison to other transactions JD Power measures.
I shared parts 1 and 2 to set up part 3. What’s going on with our industry? Why are insurance company commercials still sophomoric attempts at humor at best, or utterly stupid at worst? Why is such an important product that provides such an import service, consistently depicted by clowns?
At a time where we are seeing rate and premium hikes that leave consumers questioning why they even have insurance; we should be educating customers and potential customers on the value of proper insurance coverage(s).
Due to a challenging economy, many people have opted to not have insurance as they struggle to pay other bills, such as, heat, electricity, groceries and gasoline for their cars. I understand that, however, the exposure they face could cripple them permanently if the unexpected occurs. And it will - to some. I have seen them, met them, in some cases sued them. Many decisions adults make have an impact that haunt them for years and even decades into their futures. Being uninsured when a loss occurs can be one of them.
As the number of uninsured motorists increases on American roads, why are the largest insurers not advertising the risks being without coverages and the true value of being insured? Not only does sending that message appear to be a public service announcement, but it’s also a way to attract more policyholders and generate more premium.
I don’t expect state departments of insurance to take up the banner for insures. Too many of them have been corrupted, see themselves as consumer advocates and insurance companies are their enemy. So, I am asking the larger insurance carriers to look at your advertising critically. Are you instilling in the consumer with the confidence that they need for your product? Are you properly characterizing the value of the products and services you offer? Are you wondering why consumers are cynical of insurance carriers and mad that you take more and more of their money with no perceived return? I am not sure that extremely high-priced athletes, actors and animated characters are the best representation for such an important product. Let’s leave the goofy commercials to Dr. Pepper!
In my current role, I love training insurance professionals, particularly claim professionals to respect the industry and perform their duties professionally, honestly and with utmost good faith. Our industry is THAT important. I would like to see the advertising reflect how important our industry really is.
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Thank you and I would appreciate your feedback!
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End of part 3
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