I’ve been in the insurance business for 27 years and I hate it too! Let me tell you why, and why there’s hope. I hope!
What do people hate about insurance? Insurance is expensive. It’s a big purchase that doesn’t come with much gratification. You spend $1500 on insurance you get a piece of paper. You spend $1500 at Costco, you get a very big screen TV and a steak to eat while you watch it.
There’s more. People hate insurance because it takes so much of your time to deal with it. Filling out applications, calling around for quotes, dealing with countless different people, being put on hold, its just a long tedious process with no reward at the end. People also hate that they don’t understand it. Its complicated. Policies are long small print documents that are difficult for even lawyers to interpret. People hate that there doesn’t seem to be any logic to what they pay. They don’t understand how premiums are calculated and why they have to pay so much for their kids, or why one car costs way more than another. People hate insurance sales people hounding them, and no one telling them how the process works.
Perhaps the biggest thing people hate about insurance is dealing with claims. What are some things covered and some not? Why does it take so long to get paid or repaired? Why doesn’t anyone communicate with you about what’s going on and explain it to you? Insurance is always needed at stressful and difficult times. You only need it when you have a loss. You or someone you love has been hurt, you’ve lost or damaged something you ‘ve worked hard for, or some unforeseen situation has fallen out of the sky and disrupted your life.
Having been on all sides of insurance (I can’t seem to hold down a job), claims adjuster, seller, buyer, loss prevention, risk management, big companies, small companies, public sector, private sector, I could go on… I have a pretty rare perspective. I hate all the same things you hate, and more. But, because I have seen all sides I also see the importance and need for insurance.
Without insurance you couldn’t get a car loan or lease. You couldn’t get a mortgage. You couldn’t enter business contracts or start a business. You could lose everything you have and be financially ruined at any time. Frankly, without insurance you wouldn’t sleep at night, and you probably wouldn’t leave the house.
Ok, so we need it, but we hate it, can’t there be a happy medium? I believe so. It all comes down to a few basic principles: respect, information, and communication.
Respect because everyone deserves it. You pay a lot of money for insurance, you deserve to be treated professionally, fairly, decently. Information because you deserve to have all the information and options to make your decisions. You are a thinking person with the right to be informed and given all the relevant information and what it means so you can make an informed decision. Communication because you deserve to know what’s going on. You shouldn’t be kept waiting or wondering, you should be in the loop and in the know.
I have been writing for years that the insurance model is broken. I started Optimized Insurance to practice what I have been preaching for so many years. We aren’t perfect, we make mistakes, but we will always treat our customers with respect, we will always give them full and honest information, and we will always communicate with them often and openly.