In all my work with insurance, brokers and insurers, we always bang against the same gnarly and intractable problem:
The customer experience is abysmal.
Buying insurance is like undergoing a colonoscopy. Or paying property taxes.
The agent or broker or insurance company that can improve this experience even a smidgen will get rich.
No matter how eloquent your story, no one actually wants insurance, loves it, or looks forward to shopping for it. It’s just because your leasing or mortgage company requires it. Or you’re afraid of being scolded for not buying it.
Worse still, owning insurance is mostly about writing checks, which constitutes 89% of your interaction with the insurance company.
For your car payment, you get a car. For your credit card payment, you got that steakhouse dinner, the HD TV, the new suit, the dishwasher.
For your insurance check you get. . . well, you get papers filled with bullet points and legalese, which you throw in a drawer. The warm “peace of mind” lasts maybe two weeks. After that it’s about writing checks.
In the past twenty years, I have written 240 checks to my auto insurer. In return they sent me three checks and some swell key fobs.
And only a certain percentage of clients get to use the insurance at all, and only when something nasty happens. A tree falls on a house. A grandmother breaks a hip in a restaurant. A bus backs into your car.
Even then, there’s a 50% chance you won’t be delighted with the outcome. (A deductible of $2500 applies. Seepage or water back-up is not covered.)
No, I don’t have any breakthrough solutions yet.
My clients and I are on working on bits and pieces of the issue, trying to remove the pain and nuisance a little at a time. Such as new ways to illustrate what you get for those checks, in a visual, graphic format like you receive from an investment house.
Or in trying to show what those ‘coverage declarations’ actually mean in real life.
With another client, we’re acknowledging that yep, insurance is a nuisance. But we can make that irritation go away.
The opportunity is huge.