Business Insurance Policy Renewals

There are only four choices when you are anticipating the renewal of your insurance.  Each approach, from the insurance buyer’s perspective, has advantages and disadvantages:

Renew-As-Is – Renew with the current agent who renews with current insurer

  • Easy – agent has info he needs
  • No competitive pressures to push better coverage or price
  • Nobody checks the agent’s work
  • Little recourse if premium increases

Current Agent Obtains Quotes From Multiple Insurers

  • Easy – agent has info he needs
  • Competition among insurers
  • No competitive pressures to push agent
  • Nobody checks the agent’s work
  • Agent may miss quotes from viable insurers
  • Insured’s relationship with insurer may suffer

Bid Process With Multiple Agents – Current agent and others compete

  • Ultimate competitive pressures exerted
  • Will result in lowest price and broadest coverage
  • Overseeing the process involves effort and knowledge
  • Great investment in buyer’s time working with other agents
  • Comparisons of plans is difficult for the buyer without help
  • Relationship with your current agent may suffer
  • Relationship with your insurer may suffer
  • May have to start new relationships

Agent Selection Process – Interview multiple insurance agents, select one

  • Buyer is exposed to multiple agents
  • Competition among insurers
  • Overseeing the process involves effort and knowledge
  • Buyer will invest time working with multiple agents
  • May miss quotes from viable insurers as the a single agent quotes
  • Relationship with your current agent may suffer
  • Relationship with your insurer may suffer
  • May have to start new relationships

I am working on a system that will help insurance buyers decide which option is the best, based on their unique situation.

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