Policy Issues: Let's thaw relations between agents, policyholders

Ah, April! Spring is in the air and the world is renewed! Sure, we had to get through summer, fall and winter to get here. But on a clear, fresh morning, hope springs eternal once again!

Wouldn’t it be great if the insurance world had such a season? We need one. True, we have our good days and bad, but for quite a few years now–at least in relationships with our clients-winter has been seriously eating into spring. And judging from a recent CNBC Business Nation article (originally posted on March 3, 2008 and located at press time at www.msnbc.msn.com/id/23409995), the chill is only settling deeper into our bones.Please understand I’m not assuming CNBC has no bias, or that every opinion expressed has the ring of biblical truth. What we should focus on is the consumers’ tone of voice, contrasted with the responses from industry spokespersons.For example, one homeowner quoted in the article is clearly upset about the settlement her insurance company offered her after a loss. Her comments appear in the context of how frequently the issue of underinsurance arises following catastrophes. I’ve written about this repeatedly over the years. Whether the cause was Hurricanes Andrew and Katrina, California wildfires and earthquakes, or Midwest tornadoes and hailstorms-you name the catastrophe, homeowners (and commercial risks) are underinsured.The quote begins with an assertion from Robert Hunter, insurance director for the Consumer Federation of America:

Full disclosure: Regular readers know that I’ve ranted over the years that agents and carriers need to get out of the valuation business, that we aren’t that good at it despite all our fancy software programs and checklists, that it’s misleading for insureds to think they can rely on our accuracy, and it can only kick back on us at the worst possible time–when an insured suffers a loss. To those who have consistently told me we have no choice, or that such valuations offer a real service to our clients, I simply submit Ms. Reimus as Exhibit A in my favor.