I have recently been a little agitated at many things. As I turn on the t.v., I get blasted with all the political slinging, ads that you know are not the truth and I wonder is anyone one believing all this stuff? I don’t like most of the political arena and in many ways I am ignorant. Yes, it’s true – it has been a slow turn for me as it was just not something I grew up with so it took awhile before I really cared. Then, I dated someone who was the chief of staff for a senator and I saw so much waste of time and money in his work, it just made me sick. I watch it in my own industry and so my trust is very low. Here is my main agitation. Do we not use any common sense when we ponder something?
My industry is one of those that today that I find myself a bit perplexed. We contact businesses and try to give them an assessment of where they are in regards to the cost of their business insurance. We have actual rates from our client base for the last 14 + years and they are real figures.
We tip our prospects onto what they should be paying for insurance based on how much property they have, sales volume, industry, workers comp best pricing, etc. Now, do they call us and question us to how we arrived at those figures? No. What they do is they send this information to the agent who insures their account. Now, I ask you, what do you think that agent is going to say? Is it, “Yes, John we have been ripping you off for years?” “Oops, sorry about that, we will fix it now”. Or is it more likely they will say, “I don’t know how this person can say that without knowing your account” we do the best job we can at keeping your costs down.”
Quick Facts:
- 98% of our clients save money
- Our average savings is 35%, we have saved as high as 74%
- We don’t sell insurance – we don’t want to be your agent
- We only make money if we save you money – a one-time percentage of the savings
Why do you call the person that is possibly over-charging you? If they lower it, are you really happy? Did they serve you well?
This October we had one of our clients that we were working with and utilized our new calculator system – we predicted that they should be paying about $25,000 for their insurance. Their current cost was $61,000. The carrier they had was a good carrier and one that can be very competitive and yet, they were over-paying according to our data by over 50%. The client sent me an email from his agent and it said, “We have sent the renewal application to several carriers to check the market place for your insurance coverage renewal, most have indicated they can not compete with the current carrier.” I’ve got to tell you, I laughed when I saw it. I see this all the time, every month. Our client said, well good luck, and I know he didn’t believe we could come through, many of our clients don’t, it just sounds too good to be true and they keep hearing from their own agent that they can’t get a better deal and even other agents will tell them that same thing. It MUST be true!
Our calculator works because it is a base line on what is available as the BEST rates, and then all we have to do is find one or two carriers that want the business willing to offer coverage at that best price available. The agents are working in the wrong direction. They are working on the premise of “what are you willing to buy at” so as long as you don’t know what you should pay, and no one else brings it to the table, then they have you!
For this particular account, the end result was we had two offerings one at $37,000 and one at $31,000. The client had another agent bidding on it and he came in at $55,000 (with less coverage). His own agent then miraculously dropped his premium to $38,000. We did not get a quote at $25,000, but given the chance to work it again we could probably get it there in less than three years. If your premium is high, it can take a couple of years to get it to it’s lowest level because the carriers will have to if they want it, but when it is already high, they know they don’t have to max credits to obtain the account. We don’t have to know everything about your account to give you a pretty accurate prediction – just a few, simple basics.
Back to the original question, why do prospective clients call their agents to check us out? What are you expecting to hear from them? If we had taken this approach with the computer when it was introduced who would we have called, the person who sold us the typewriter? “Hey, typewriter guy, this other bloke says he has this gizmo that will store all my data I type into it so I can use it again, save it, forward it, etc.” “Do you think I should try it? Typewriter guy, “hell no, our product is the state of the art gizmo”. How many of us still have typewriters?
Who should you call? Call some of our clients, most of them were all skeptical until we delivered. All you need to do is ask.
The fact is, if your agent has done the best job available, then they shouldn’t fear us working on your account, since we couldn’t possible find anything better, right? So why don’t they encourage it? I think you know the answer.