Private Risk Advisor

Albert Einstein on the topic of problem solving: “If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes.”

As it concerns the problem of deciding which insurance product to buy, I remind the clients and advisors I serve to approach the decision by first asking the right question. Consider which of these two questions is likely to provide the best solution should you ever actually need the insurance you are selecting to  protect your assets from a loss (the reason to buy insurance in the first place):

1. Which insurance product costs less?  

2. Which insurance product best protects me from the risks that can cause me the greatest harm? 

Can we agree asking the second question will provide consumers a far better chance of selecting insurance coverage that will not disappoint them after a loss? Why is it then that so many consumers approach the “which-insurance-to-buy-problem” by focusing instead on the first question?

Remarkably, we need only look to the insurance industry itself (and their advertising allies) for the answer. Marketers know when the product is confusing, interest level low, and benefits are intangible, consumers make buying decisions by focusing on the one factor we can all most easily distinguish — cost. While there are a few exceptions, the prevailing advertising theme “save X % in Y minutes” tricks consumers into asking the wrong question to select a product they may one day need to protect their assets from a possibly life changing loss.

While the image of a carnival shell game as a metaphor for insurance marketing is harsh, it is sadly fitting. The loss protection provided by insurance products varies widely, in important ways that are much more hard to discern than cost. Providing consumers with thoughtful and strategic answers to the second question is my commitment to the clients and advisors I serve.

Why not follow Albert Einstein’s advice before simply accepting the renewal offer on your next insurance policy?

Read Full Post »

A total of 86 current and former members of a fraternity at Yale University are being personally sued in connection with a deadly tailgating crash at the annual Yale-Harvard football game in New Haven in 2011.  How is it that the 86 local fraternity members are being sued personally?

It seems the insurance carrier of the national chapter of the fraternity has disavowed coverage, indicating the national chapter was not responsible for the Yale chapter’s actions, didn’t sanction the tailgating event at the game and its insurance company doesn’t cover non-fraternity events. Yet another reminder why it is extra important for parents of college students to re-examine their personal liability insurance  protection. To learn more:  http://www.claimsjournal.com/news/east/2014/01/17/243069.htm

Read Full Post »

It is well documented that residential fires increase each year during the Holiday Season. I have had two different friends who lost their homes to fire on Christmas day.. Candles are a big culprit, as well as Christmas tree lights. This was never an issue in the O’Brien household growing up —- my father was adamant our tree lights could only be “on” for a few short hours.

With advances in modern technology, wouldn’t you think the risk of Christmas tree lights causing house fires was in the past?  Well, enter the Twinkling Pine artificial tree sold under the brand name Enchanted Forest.  Care to guess where it was manufactured and imported from?

For news of the recall of 1,800 pre lit artificial trees: http://www.claimsjournal.com/news/midwest/2013/12/19/241839.htm

Read Full Post »

These three words exclaim a bold new marketing theme for PURE High Net Worth Insurance.  They depict PURE’s deep organizational commitment to deliver insurance not as a commodity, but as an invaluable service to their member policyholders.  The words also dare to redefine the expectations consumers should have of their insurance company.  Finally, this bold theme also helps to remind the employees and Independent Agents serving those insured by PURE that the mission is to constantly strive to exceed the highest expectations.

Imagine ….. loving your insurance!  To review PURE’s bold new objective, check this link: https://www.pureinsurance.com/campaign/index  If you are not aware of who PURE is and how they are different from other carriers, I’d be happy to offer you an impartial assessment.

Read Full Post »

News reports on the effects of the flood insurance reforms being implemented have overly focused on those who are experiencing extremely high increases in their flood insurance premiums. Meanwhile, be aware the implementation of the BW12 Reforms will take place over many years, and knowing for certain the final cost impact and just how many will be effected is not yet fully understood. 

For a complete perspective on how tangled this web really is, we offer this insightful report from Insurance Journal http://www.insurancejournal.com/blogs/right-street/2013/11/04/310235.htm

Read Full Post »

The beginning or end of daylight savings time each year marks a real rise in the risk of DWD —- Driving While Drowsy. With the end of daylight savings time arriving this weekend, it will be extra important to “watch out for the other guy“ while on the road in the weeks ahead.  He / she may be half asleep…..

How big a risk is Driving While Drowsy? According to the National Highway Traffic Safety Administration, driver fatigue is considered a factor in more than 100,000 crashes, approximately 1,500 deaths, 71,000 injuries and amounts to $12.5 billion in losses each year.  Big enough?

Many who would never drive while intoxicated have admitted to driving while drowsy. I regret that I have “nodded off” while driving overly tired a few times. After one particularly close call (thank heaven for rumble strips) I now take precautions to eliminate this risk.

Following is a link to a great article that may benefit someone you know who needs to be reminded of the dangers of DWD. Why not forward this to someone you know: http://www.claimsjournal.com/news/national/2013/10/30/239152.htm

Read Full Post »

The Biggert Waters Flood Reform Act of 2012 has created a harsh new normal for those requiring flood insurance in high risk flood zones. Beginning this past Oct. 1, flood insurance premiums for more than 1 million homeowners are increasing in compliance with legislation passed by the U.S. Congress last year to remedy the massive deficits plaguing the National Flood Insurance Program administered by FEMA.

As a result, the re-sale prices for many homes located in high risk flood zones around the country are declining as potential buyers balk at the new, considerably higher flood insurance premiums. The impact has been especially challenging for those connected to the real estate industry, as many buyers and seller have been caught by surprise, as documented by this story:  http://www.insurancejournal.com/news/national/2013/10/24/309110.htm

To learn more about the Biggert Waters Flood Reform Act of 2012, check these FAQ’s provided by this link:  http://hamptonsfloodprotection.com/2013/08/20/faqs-on-bw12-the-new-flood-reform-act/ or call me for more information.

Read Full Post »