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Posts Tagged ‘large insurance carriers’

 In an attempt to speak with a local attorney about the importance of un / underinsured motorists coverage, I clumsily asked how he felt about the topic. My awkward phrasing provided the perfect fodder for this attorney to display his oh-so-sharp wit, and he mockingly replied to my question “Why, I’m 100% against uninsured motorists!”  

Once he was done laughing at his own joke (it took awhile), I explained that what I intended to ask was whether he ever felt it worth his while to recommend to his clients the importance of structuring their automobile insurance to better protect themselves from the costs of injuries caused by a driver with either no insurance, or very low limits of liability coverage.  As I recall, he wasn’t so against uninsured drivers that he felt it important enough to makes his clients aware of the need to protect themselves and their families. According to this news report, neither is Geico.

A large part of Geico’s ability to help consumers “save 15% in 15 minutes” stems from the fact they feature a “select your own coverage” business model. One of the outcomes of DIY insurance: according to this report (check the link above), Geico is not complying with state laws designed to help consumers make informed coverage decisions. Why not?  They are not complying because it is more profitable for Geico to allow consumers to select less protection from un and underinsured motorists

Call me @ 631-329-7246 if you want to understand WHY Geico and several LARGE insurance carriers encourage consumers to “save money” by skimping on important un/underinsured motorists coverage, and to learn what you can do to actually protect your family and your clients from the many drivers who have little or no liability coverage.

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I cringe each time I see major insurance carriers advertising their coverage using “save ___% in __ minutes” or “name your own price” deceptive sales pitches. Most sophisticated consumers understand that in order to significantly lower insurance costs, certain sacrifices in protection (known or unknown) lurk somewhere in the fine print.

Meanwhile —- there IS a way to purchase high limit personal excess liability (often referred to as “umbrella” coverage) at costs between 30 and 50% below the prevailing market costs. Often, coverage enhancements can be included that even expand the protection normally available with such policies. More coverage at a lower cost —– but how?

As always, there is a “catch”: more protection for less money can be arranged only when carriers are presented with a large enough group of applicants who comprise an eligible “Group”. “Group Personal Excess Liability” (GPEL) is a concept that has been around for decades, and is regarded as a valuable voluntary benefit at many large corporations.

The leading underwriters for this product are Chubb, CNA, Chartis, Fireman’s Fund and Ace. The differences in eligibility, costs, and coverage features offered by each carrier are subtle, yet important. Generally, the program is most successful in a workplace with a group of 10 or more participants seeking liability limits of $5 million or more. For larger groups, the coverage enhancements, ease of enrollment and cost discounts can become very meaningful. I’d be happy to have a conversation to help you examine whether this program can benefit you and others you know, or clients you advise.

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McKinsey & Co., the giant consulting firm, has helped several major insurance carriers to increase their profits by devising alarming claims strategies that all consumers should be aware of.  Check this link  to access video of a CNN investigative report that is essential viewing for all insurance consumers.

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