Insurance isn't easy right now. There are a variety of reasons.
First, inflation has a trickle-down effect. Everything costs more now, with insurance being responsible for bringing us back whole, inflation directly impacts the pricing of insurance. Second, supply chains continue to have disruption and labor shortages exasperate the problem. Combined, these factors cause delays and therefore more expensive claim payouts. Third, we continue to see an increase in natural disasters. Prior to the year 2020 the 40 years combined averaged 6.6 billion in payouts due to natural disasters. Insurance companies use this data to help determine insurance rates. In reading an article I noticed a statistic by the National Oceanic and Atmospheric Administration that announced in 2023 we have already seen a record number of billion-dollar climate disasters. Although 2023 is not over yet we have seen 23 natural disasters which have exceeded 57.6 billion in payouts so far. Similar increases were in 2021 and 2022 as well. Insurance companies have to file with the state and gain approval to increase rates, a lot of the states are not granting increases in a timely manner (or at all), this exacerbates the problem. The above factors (and others not mentioned) have caused many insurance companies to be unprofitable for a couple years now. We are seeing carriers make decisions that in my 23 years in insurance I've never seen before. Record insurance rate increases (MN was #1 in premium increases nationwide in 2022), companies freezing new business, companies closing down departments, company layoffs, an increased struggle with claims, and restrictions that seem to change by the day... this just touches the tip of the iceberg. While this article is not about insurance, it is about the character that is revealed during hard times. Right now I hear a lot of complaining, venting, and overall wallowing in the condition of the market. This being said, at Aspire, our number one priority is the care of our clients. This is an opportunity to show our value, and to take great care of our clients. This is a time where our proactive service and superior operations shine through. This is a time where clients NEED sound advice from a professional. Challenge accepted! This is also a time where our attitudes reveal if we have grit and are willing to face a challenge or if we shrink in the face of difficulty. Last week was a tough week for my team, we had a variety of meetings addressing difficult accounts, difficult companies, and situations that stretched us. Over and over last week I heard my team say to each other “we got this” and I watched as they pulled together as a team to support each other. We met our challenges with a great attitude and finished the week with wins and raving fans! We talk a lot about how the hard market can be looked at as an opportunity – to show our value, to help our clients, to educate, to show we care and so much more. We don’t have control over what companies do with their rates, but we can focus on the things we have in our control. I always say, be careful what comes out of your mouth, because your ears hear it! My takeaway is this – in hard times, look for the opportunity. I know that on the other side of this hard market, my team is going to be sharper than ever! Be mindful of entertaining too much venting, what you focus on is what you will see more of (and your ears are hearing)! What opportunities are at your fingertips? B.
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When I was going through Goldman Sachs 10,000 small businesses program, we were asked a question. "What sets you apart from your competition?" In the independent insurance agency space, most often we hear personalized service, or we hear we have many companies, and we shop for you. Here's the problem, if everyone says the same thing sets them apart it's not a differentiator anymore. Additionally, let's just say we use that we provide excellent service, most oftentimes it's our opinion. How does one measure if great service is truly being delivered? I would argue that our current clients are the ones who should be answering if excellent service is delivered. So then how do we measure our client satisfaction? At Aspire we have a variety of measurables, two of which I think give our clients a voice. The first is our retention, the second is our internal Net Promoter score. I'm going to take a moment to brag on my team. During a very difficult market in the insurance industry, we have managed as a team to look at difficulty as an opportunity, to be proactive with our clients, and to continue delivering excellent service despite the extra strain on our resources and our hearts too honestly. Last week when I pulled our internal Net Promoter score, I was so proud to see a 90.2% happiness score. When clients have contact with us, they are sent a survey, they are asked out of 1-10 stars where do you rank your experience (1 is not great and 10 is amazing)? The 8-10’s are raving fans! This means that our team is living up to one of our core values, to create raving fans. The beginning of October was our kickoff for fall planning. We spend all of quarter four reflecting and planning for the upcoming year. Spending time together is one of our favorite things, and to commemorate the crazy time in the insurance market I had sweatshirts created to surprise our team, I've attached a picture because I thought you'd get a kick out of them. In summary there are a few takeaways/ thoughts to reflect on as you start to plan for 2024. One, we are always greater and can go further as a team. Two, look at difficulty as opportunity, our mindset matters…this is my challenge to you. Three, are you the same kind of different, I used to be. Four, what are your measurables?
I hope you have started to reflect on 2023, the lessons, the wins and are dreaming of 2024 like we are! B. I often reflect on the significant impact that our relationships and associations have on our personal and professional growth. Did you know, we are the sum of the five people we spend the most time with. It's easy to fall into friendships, people we work with, people who have kids the same age, people who are involved in similar activities. Although I can say that I have many people I enjoy, and whom I’d readily call a friend, my inner circle is small and hand-picked. My inner circle consists of mentors, motivated peers, and those who are dedicated to moving in the same direction as I am – forward! I don’t want to sit around – stuck – having the same conversations I had 1 -3 -5 years ago. The conversations here are different, they challenge and give valuable insight because they want to see you succeed. They may challenge your thinking, offer constructive criticism, and inspire you to push – so trust and vulnerability is a non-negotiable all the way around. Connecting deeply with others who are driven and have ambition fuels me! Last week, I spent an impactful 3.5 days with a small mastermind I have been in for about 5 years now, we shared, challenged, connected, and collaborated. The conversations were uplifting and even though there was even 3 of us within a 40-minute area…we are all rooting for eachother. What I love even more, is that this group is full of people with varying belief systems…and somehow 3.5 days in a Vacation Rental together in close quarters – we were each other’s biggest cheer leaders. That speaks volumes about the character of those in the room. Growing up my youth group leader did this exercise where one person was standing on a chair, and another on the ground. They took turns trying to pull each other – one, up from the ground to on the chair, and the other from on the chair down to the ground. Which is easier? It’s easier to pull the person on the chair down to the ground. So, pick your people carefully, there is transformative power in meaningful relationships! Love your people, B PS - a little shout out to our token male, Tom! He was on his bike when the first picture was taken. |
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