 Posted: Sun Mar 01, 2009 1:29 pm Post subject: |
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| Quote: | | I think it could and makes perfect sense to me for an ins carrier to marry this type of plan to their p&c sales...but then again, carriers are in the buisness of making more not less premium (higher deductible=less premium)...maybe that was the problem with your other employer? |
Lori, I get that question a lot. It is true that carriers are in the business of earning more premium, but one of the keys to doing this is to add enough value so that they can mult-line people and increase their retention. That is why counseling someone to raise their deductible can result in more premium in the long run ... because you have added value, and they are more likely to stay with you longer.
At that time, I was responsible for nonstandard auto product management. It is notoriously difficult to multi-line nonstandard policyholders, but the reward is high: Adding a single extra line can increase your retention by twenty percentage points. I liked the idea of setting them up with a savings account at a bank owned by the company, because it would also serve to multi-line them. Since no other carrier offered something seamless like this, it would make it more difficult for them to switch. The bank was too new to have any statistics on the increase in retention due to multilining with the bank, however. We had it on the project list, but there were far more pressing systems issues--like getting new states live on the new processing system, which we were rolling out countrywide. It was on the list, but farther down in the priorities, when I left.
Now that I am an agent, I have NO chance of getting it done in the seamless single-bill fashion. I think I will try putting together a flyer to market the two together, however--the company-branded bank account to go with the company's auto policy--but they will have to be paid separately.
The question is whether people will see the value in having it laid out more explicitly for them, with a savings deposit schedule into a specific account, instead of just telling them, "You need to save the difference." I wonder if they will actually do it instead of just saying they will.[/quote]
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ChristyP
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| Posted: Sun Mar 01, 2009 2:17 pm Post subject: |
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| Quote: | | That is why counseling someone to raise their deductible can result in more premium in the long run ... because you have added value, and they are more likely to stay with you longer. |
"I" totally agree, was just wondering if perhaps that wasn't the reason your prior employer didn't go for it....I understand it's 'all' about retention.. 
I don't think there is any question in the 'value' that your customers would see...once it is explained to them the amount of premium reduction they will/would get from increasing their comp and coll deductibles and even HO deducts...it's finding a way to market it...hey, maybe we should go into business? ha ha, just kidding, i think this would be a terrific opportunity for the carriers themselves to handle as you said..
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