As most countries effected to current world economic crisis, i think insurance company should play their social responsibility to public. This is what i found on Insurance in America currently.
The most recent Consumer Price Index makes a compelling case for the fact that state regulators may not be keeping up with car insurance rates, especially at a time when many Americans are least able to pay their bills.
Earlier this week the U.S. Department of Labor released figures showing that while the CPI, which measures the cost of much of what we buy and use, declined by 0.2 percent from a year ago this October, automobile insurance premiums rose 4.6 percent.
That’s good news for car insurers such as Allstate, Farmers, GEICO, Liberty Mutual, Nationwide, Progressive, State Farm and Travelers since they’ll probably show a profit on auto premiums for 2009.
But these statistics could raise a red flag for any state regulator who wants to ensure that insurers don’t make excess profits. California Insurance Commissioner Steve Poizner, who is running for governor of the state, already has a reputation for doing this with homeowners’ insurance.
Car insurance is mandatory in most states, and it has to be regulated. But states often give car insurers the privilege of “flex rating,” allowing them to raise rates by anything less than 5 percent in a given year without regulatory approval, thereby helping the bottom line. But at a time when inflation is virtually nil and other products and services cost less, at some point regulators are likely to ask, “Is this really fair?”
In most instances, the amount insurers pay policyholders when a car is involved in an accident is rising more slowly than the rates they charge, according to recent figures kept by the Insurance Information Institute. The cost of motor vehicle body work rose just 2.1 percent, total medical care 3.5 percent, physicians’ services 2.8 percent, and legal services 3.5 percent - well below the increases insurers are reaping.
Hospital services, at 6.9 percent, is the only cost above what insurers made, and even that increase is half a percentage point lower than in 2008. If the fear of the national health care plan is helping to bring that number down, then perhaps a little more regulation couldn’t hurt.
Saturday, November 21, 2009
Saturday, November 14, 2009
Why We Should Take an Insurance?
Thousands of Vets Die Because They Lack Health Insurance
More than 2,266 veterans died in 2008 because they lacked health insurance, according to a new study, New America Media reports.
For the study, Steffie Woolhandler of Harvard Medical School and colleagues examined data from the Census Bureau's March 2009 Current Population Survey.
The researchers found that in 2008, 1,461,615 veterans ages 18 to 64 were uninsured. The Department of Veterans Affairs extends health care services only to veterans who become disabled as a result of military service.
In prior research, the study authors found that people without health insurance have a 40% greater risk of death compared with those who have coverage. The researchers used this formula to determine that 2,266 veterans died in 2008 because they lacked insurance coverage.
Woolhandler said most uninsured veterans are working people who cannot afford private coverage but who also do not qualify for Medicaid or VA care.
David Himmelstein, co-author of the study, noted that current health care reform proposals do not adequately expand health care coverage for veterans (Sundaram, New America Media, 11/10).
More than 2,266 veterans died in 2008 because they lacked health insurance, according to a new study, New America Media reports.
For the study, Steffie Woolhandler of Harvard Medical School and colleagues examined data from the Census Bureau's March 2009 Current Population Survey.
The researchers found that in 2008, 1,461,615 veterans ages 18 to 64 were uninsured. The Department of Veterans Affairs extends health care services only to veterans who become disabled as a result of military service.
In prior research, the study authors found that people without health insurance have a 40% greater risk of death compared with those who have coverage. The researchers used this formula to determine that 2,266 veterans died in 2008 because they lacked insurance coverage.
Woolhandler said most uninsured veterans are working people who cannot afford private coverage but who also do not qualify for Medicaid or VA care.
David Himmelstein, co-author of the study, noted that current health care reform proposals do not adequately expand health care coverage for veterans (Sundaram, New America Media, 11/10).
Friday, November 13, 2009
Why Some People Always Make Money with Insuranc
How do you define agent? The dictionary has three definitions I’d like to share with you and then explain the difference those definitions reflect in your mindset. Those differences in mindset have a dramatic impact on your outcomes.
The first definition describes an agent as a person who officially represents another in business. This is the classic unpaid sales force definition. You work for commission and only get paid after you produce the goods, in your case a policy holder.
A second definition describes an agent as a person who provides a particular service for another. Now that’s getting a little better. Another way to state this definition would be to say you act as a client advocate.
The final definition describes an agent as the means by which a result is produced. This definition moves you into a power position. This definition places you in a position where you have far greater control over your destiny than the first definition.
Now let’s uncover the subtle differences in mindset between these three definitions. If being an agent means you’re a commission only sales person then you are a victim. You have to depend on the company, and their actions for your success. The company has the power, and the only way you gain power is through the company. This is equivalent to an employee mindset.
The second definition reflects your role as a client advocate. As a client advocate you’re developing long-term relationships with your clients. You have a responsibility to those clients to act on their behalf, and place their best interests ahead of your own. Attorneys and accountants are among the most respected client advocates. You can place yourself in a similar position when your actions demonstrate your intentions.
The final definition reflects the mindset of a business owner. As a business owner you hold yourself accountable. You lead yourself. You are never a victim. The power to success is entirely within you. You are fully responsible for you and your actions.
When your mindset is the mindset of a business owner you realize even though you may “represent” one or more companies those companies are nothing more than vendors for you. Your success is determined by your ability to:
* attract highly qualified prospects
* gain the attention and interest of those prospects helping them to enter your sales funnel
* help those prospects to buy thus moving them through your sales funnel and out as clients
* build life-long relationships leading to repeat business and referrals
* get the most value from your time allowing you to enjoy a life beyond the business
As the business owner with full control over your success you have the power to make your future a reality. As you look at your business where do you see the gaps? What actions will you take to close those gaps? How would it impact you and your business if you closed the gaps? What, if anything, is keeping you from taking action and closing those gaps now?
Are you beginning to understand why those who think of their insurance business as a business, and themselves as business owners almost always make money with insurance when others don’t? Ditch the employee mindset and develop a business owner mindset and notice the impact on your results.
The first definition describes an agent as a person who officially represents another in business. This is the classic unpaid sales force definition. You work for commission and only get paid after you produce the goods, in your case a policy holder.
A second definition describes an agent as a person who provides a particular service for another. Now that’s getting a little better. Another way to state this definition would be to say you act as a client advocate.
The final definition describes an agent as the means by which a result is produced. This definition moves you into a power position. This definition places you in a position where you have far greater control over your destiny than the first definition.
Now let’s uncover the subtle differences in mindset between these three definitions. If being an agent means you’re a commission only sales person then you are a victim. You have to depend on the company, and their actions for your success. The company has the power, and the only way you gain power is through the company. This is equivalent to an employee mindset.
The second definition reflects your role as a client advocate. As a client advocate you’re developing long-term relationships with your clients. You have a responsibility to those clients to act on their behalf, and place their best interests ahead of your own. Attorneys and accountants are among the most respected client advocates. You can place yourself in a similar position when your actions demonstrate your intentions.
The final definition reflects the mindset of a business owner. As a business owner you hold yourself accountable. You lead yourself. You are never a victim. The power to success is entirely within you. You are fully responsible for you and your actions.
When your mindset is the mindset of a business owner you realize even though you may “represent” one or more companies those companies are nothing more than vendors for you. Your success is determined by your ability to:
* attract highly qualified prospects
* gain the attention and interest of those prospects helping them to enter your sales funnel
* help those prospects to buy thus moving them through your sales funnel and out as clients
* build life-long relationships leading to repeat business and referrals
* get the most value from your time allowing you to enjoy a life beyond the business
As the business owner with full control over your success you have the power to make your future a reality. As you look at your business where do you see the gaps? What actions will you take to close those gaps? How would it impact you and your business if you closed the gaps? What, if anything, is keeping you from taking action and closing those gaps now?
Are you beginning to understand why those who think of their insurance business as a business, and themselves as business owners almost always make money with insurance when others don’t? Ditch the employee mindset and develop a business owner mindset and notice the impact on your results.
How do insurance companies make money?
Insurance companies collect small, certain amounts of money (premiums) from policyholders who want to avoid the possibility of a large, uncertain financial loss. The insurance allows the dollars of many to pay for the losses of a few. Insurance companies use historical data to figure the probability of losses and charge premiums accordingly, building in profit for themselves.
For example, there are 100 houses, each worth $10,000, in the neighborhood ($1,000,000 total value). Given the history of the neighborhood, 5 houses can be expected to burn during a typical year. If they didn't have insurance, all 100 homeowners would have to keep $10,000 in the bank to "self-insure" their home for the cost of rebuilding.
With insurance, each homeowner must only pay $500 into the insurance pool each year to cover the five houses that will likely burn:
* 5 houses burn x $10,000 = $50,000 needed for rebuilding homes
* $50,000 needed for rebuilding divided by 100 homeowners = $500 premium
The $500 premium covers the property each year. Of course, it will then be adjusted upward somewhat to build in whatever profit the market will bear for the company. It is important to shop around, because premiums are not the same from company to company.
For example, there are 100 houses, each worth $10,000, in the neighborhood ($1,000,000 total value). Given the history of the neighborhood, 5 houses can be expected to burn during a typical year. If they didn't have insurance, all 100 homeowners would have to keep $10,000 in the bank to "self-insure" their home for the cost of rebuilding.
With insurance, each homeowner must only pay $500 into the insurance pool each year to cover the five houses that will likely burn:
* 5 houses burn x $10,000 = $50,000 needed for rebuilding homes
* $50,000 needed for rebuilding divided by 100 homeowners = $500 premium
The $500 premium covers the property each year. Of course, it will then be adjusted upward somewhat to build in whatever profit the market will bear for the company. It is important to shop around, because premiums are not the same from company to company.
Facts You Should Know About Making Money In Insurance
Here is my finding about making money thru insurance;
To increase sales insurance agents should: "Put themselves in their prospective client's shoes." More and more consumers are shopping online for insurance. Thousands of insurance prospects go online to find local insurance agents everyday. The solution to contact these insurance prospects is an online lead service QuotesAuction.com available to insurance agents by subscription.
A number of things make QuotesAuction.com unique in the lead generation niche:
1. Quality of the lead, which is the result of a thorough multiple question form that consumers complete when seeking quotes.
2. Filters are available for certain lines of insurance such as auto, health, life, & etc.
3. Ability to segment a territory by state, county, or zip code.
4. The speed with which QuotesAuction.com gets the leads to agents.
5. Pricing of the leads and other financial considerations related to subscribing to the QuotesAuction.com service.
QuotesAuction.com focus is two-fold. First: to provide subscribing agents with quality leads. Second: to provide a quality experience to the consumer by providing enough quotes to make an informed buying decision. Insurance agents have a good experience with QuotesAuction.com, because of the quality of the leads and the ability to filter the leads to meet their underwriting criteria. At the end of the day, insurance agent is going to look at how much it has spent for leads and how many of those leads have converted to the sale of a product.
DOING THE NUMBERS
Here is an example of an equation you can use to help calculate how you make money on your QuotesAuction.com leads. This is based off a scenario of an agent that receives 100 health insurance leads a month with an average close rate of 5%.
100 Leads Purchases x $7.00 Cost per health lead = $700.00 Total Cost of Leads Purchased
100 Total Leads Received
x 99% Quoted
x 50% Connected with the Consumer
x 10% Close Rate on Consumers Spoken with
= 5 # of Policies Written
x $450 Approximate Present Value of Commissions received over the life of one policy
=$2,250 Total Commission Revenue Value Created
- $700 Total Cost of Leads
=$1,550 Revenue available to cover operating and fixed costs
/ 5 new policies
= $310 Revenue per Policy to cover operating and fixed costs
Plug in your personal numbers to the equation above to calculate how much you make on your leads!
To register for this program, agents simply sign up at https://www.quotesauction.com/sign-up.htm Once registered, they will be able to select desired geographical area, number of leads per day, wide variety of filters, large leads selection - health, life, home, auto, renters, long term care, disability, final expense, cancer, annuity, business benefits, business P/C and others. QuotesAuction.com is committed to helping insurance agents succeed. QuotesAuction.com offers $200 worth of free insurance leads to agents that sign up for its Real Time Leads Generation Program. So get the free leads now, while the promotion lasts.
To increase sales insurance agents should: "Put themselves in their prospective client's shoes." More and more consumers are shopping online for insurance. Thousands of insurance prospects go online to find local insurance agents everyday. The solution to contact these insurance prospects is an online lead service QuotesAuction.com available to insurance agents by subscription.
A number of things make QuotesAuction.com unique in the lead generation niche:
1. Quality of the lead, which is the result of a thorough multiple question form that consumers complete when seeking quotes.
2. Filters are available for certain lines of insurance such as auto, health, life, & etc.
3. Ability to segment a territory by state, county, or zip code.
4. The speed with which QuotesAuction.com gets the leads to agents.
5. Pricing of the leads and other financial considerations related to subscribing to the QuotesAuction.com service.
QuotesAuction.com focus is two-fold. First: to provide subscribing agents with quality leads. Second: to provide a quality experience to the consumer by providing enough quotes to make an informed buying decision. Insurance agents have a good experience with QuotesAuction.com, because of the quality of the leads and the ability to filter the leads to meet their underwriting criteria. At the end of the day, insurance agent is going to look at how much it has spent for leads and how many of those leads have converted to the sale of a product.
DOING THE NUMBERS
Here is an example of an equation you can use to help calculate how you make money on your QuotesAuction.com leads. This is based off a scenario of an agent that receives 100 health insurance leads a month with an average close rate of 5%.
100 Leads Purchases x $7.00 Cost per health lead = $700.00 Total Cost of Leads Purchased
100 Total Leads Received
x 99% Quoted
x 50% Connected with the Consumer
x 10% Close Rate on Consumers Spoken with
= 5 # of Policies Written
x $450 Approximate Present Value of Commissions received over the life of one policy
=$2,250 Total Commission Revenue Value Created
- $700 Total Cost of Leads
=$1,550 Revenue available to cover operating and fixed costs
/ 5 new policies
= $310 Revenue per Policy to cover operating and fixed costs
Plug in your personal numbers to the equation above to calculate how much you make on your leads!
To register for this program, agents simply sign up at https://www.quotesauction.com/sign-up.htm Once registered, they will be able to select desired geographical area, number of leads per day, wide variety of filters, large leads selection - health, life, home, auto, renters, long term care, disability, final expense, cancer, annuity, business benefits, business P/C and others. QuotesAuction.com is committed to helping insurance agents succeed. QuotesAuction.com offers $200 worth of free insurance leads to agents that sign up for its Real Time Leads Generation Program. So get the free leads now, while the promotion lasts.
Subscribe to:
Posts (Atom)
