A Significant, Positive Difference

The economy might be tight now, but that doesn’t mean it’s not a great time to reassure customers that you’re concerned about their welfare.

No one will argue that operating an insurance business today is challenging. The recession has put pressure on consumers’ wallets, causing them to consider reducing coverages; credit is difficult to come by, meaning businesses are feeling financial pressures; and the insurance industry itself has been muddling through the soft market for some time.

With increasing job instability and the value of paychecks and investments going down, consumers may be tempted to cut corners on insurance, according to the Insurance Information Institute (I.I.I.).

Additionally, consumer liaison representatives to the National Association of Insurance Commissioners warn that consumers may become increasingly disgruntled with their insurance providers if they perceive insurers are acting solely in their own best interests in this down economy without regard to the needs and concerns of their customers. The economic “crisis presents the industry with a very important choice: Will it choose to act in the best interests of its customers, rather than its bottom lines, by embracing fair practices that don’t unfairly penalize policyholders, or will it be business as usual?” asks Pamela J. Bolton, a NAIC consumer liaison and director of policy and research for Texas Watch, a consumer advocacy organization based in Austin, Texas. (See “Liaisons Keep Consumers’ Insurance Concerns at the Forefront” on page 54.)

While there are smart ways to save money on insurance, the I.I.I. is alerting the industry and consumers that there are also mistakes that could result in being underinsured. “This could result in a financial disaster if there is a fire, hurricane, severe winter weather or other catastrophe,” said Jeanne M. Salvatore, senior vice president and consumer spokeswoman for the I.I.I.

Independent insurance agents, of course, play an important role and can make a significant, positive difference in consumers’ insurance transactions. Above all, when it comes to insurance, customers want an insurance agent, as well as an insurance company, that can answer questions and handle claims fairly and efficiently if a mishap occurs.

The economy might be tight now, but that doesn’t mean it’s not a great time to reassure customers that you’re concerned about their welfare. Because unless you’re in touch with your customers, you won’t know when the next opportunity will come knocking.