I often hear senior executives for leading insurance carriers lament the common public perception that insurance products are a “commodity”, to be differentiated only by price. I share the concern about this dangerous mis-perception, and work hard to help others realize the protection provided by policies as common as homeowners and automobile insurance can vary in many important ways.
Meanwhile, I believe the insurance industry contributes greatly to this problem, and often ask carrier executives why we in the industry — both carriers and brokers — are not doing more to fix it. Many in my industry are not pleased with this view, and often bristle at the question.
Carriers can help consumers better understand the protection they provide by revising the contract language used in their policies to be more easily understood, and sending the entire policy each year upon renewal. Agents and brokers can also be of greater assistance, as too many limit their client conversations to review only coverage limits and associated premiums. While coverage limits and cost are important, few agents expand their conversations to also explain how one carrier’s coverage may provide protection that is different from the next carrier.
If you or your clients are interested in learning what is NOT covered by your policy, call me to examine the “Fine Print Protection Audit” report I make available for my clients.
