Category: Insurance

Have you contemplated becoming an insurance agent? Looking to work with an insurance agent to find affordable insurance for your business, home, or vehicle? Whatever the case, understanding the qualities that define a good insurance agent is critical. Seeing as there are over 900,000 licensed insurance agents and brokers working in the U.S., it makes sense to differentiate between what is good and what is exemplary–(hint: recognizing the latter is the shortcut to affordable, comprehensive protection!)

A proficient insurance agent not only possesses extensive industry knowledge but also demonstrates strong communication skills, reliability, and a genuine commitment to their clients’ well-being. Let’s explore what are the qualities of a good insurance agent, for both aspiring professionals and clients alike.

Why work with an insurance agent?

Working with an insurance agent offers several noticeable advantages over shopping for insurance directly from providers. An insurance agent acts as a knowledgeable advocate who can navigate the complexities of insurance policies, ensuring that you receive the best coverage tailored to your specific needs. A good insurance agent offers personalized service, expert advice, and will support you throughout your insurance journey, making the process of buying a policy, making changes, and filing claims that much easier. After all, insurance can be confusing.

Here are some of the reasons why you might choose to work with an insurance agent:

• Their expertise and knowledge: Agents possess in-depth understanding of various insurance products and can explain complex terms and conditions.
• Personalized recommendations: They assess your unique situation and provide tailored policy options that best suit your needs.
• Time-savings: Agents handle the research, comparisons, and paperwork, saving you valuable time and effort.
• Access to numerous providers: Agents often have relationships with multiple insurance companies, giving you access to a wider range of options and competitive rates. They may even have access to companies not available on the general market.
• Claims assistance: Agents provide support throughout the claims process, ensuring smooth and efficient handling of any claims you need to file.
• Ongoing support: They offer continuous service, helping you adjust your coverage as your needs change over time.
• Advocacy: In case of disputes or issues with your policy, agents advocate on your behalf to resolve matters promptly and fairly.

Quality no. 1: Social skills

A good insurance agent excels in people skills, which are essential for building strong, trusting relationships with clients. This includes being an active listener, understanding and empathizing with clients’ needs, and effectively communicating complex information in a clear and understandable way. Strong people skills enable an insurance agent to connect with clients on a personal level, making them feel valued and understood.

Working in insurance is working with–and protecting–people, at its core. Whether that’s people’s businesses, their homes, their cars, etc. An insurance agent needs to have a personal touch when it comes to dealing with these matters, as it can be very personal–especially when it comes to assessing a client’s needs and concerns. An agent with good people skills can navigate possibly sensitive conversations with empathy, offer reassurance during stressful times, and maintain a positive, professional demeanor in every interaction they have.

Quality no. 2: Time management

Effective time management is a critical quality for a good insurance agent. Managing time efficiently allows an agent to balance multiple clients, meetings, and administrative tasks without compromising on the quality of service.

Let’s be real: time management is crucial in any profession, but it can be especially so when people’s livelihoods are left exposed. By being punctual and maintaining a structured schedule, an insurance agent can maximize productivity and minimize delays, which is crucial for timely policy renewals, claims processing, and client inquiries. Good time management also enables agents to stay on top of industry developments and continuously improve their knowledge and skills.

Quality no. 3: Product knowledge

A good insurance agent must have a deep understanding of the various types of insurance, coverage options, policy terms, and the specific benefits and limitations of each product. In addition, it helps (especially in today’s age) to have some tech skills; this is especially integral for agents nowadays.

An agent should be proficient in using modern tools and platforms for comparing policies, managing client information, and streamlining the application and claims processes. They should stay current with technological advancements and industry trends to provide clients with up-to-date information and efficient service.

Quality no. 4: Reliability

Reliability is a cornerstone quality of a good insurance agent, essential for building and maintaining client trust. A reliable insurance agent consistently follows through on promises, meets deadlines, and is available when clients need assistance or advice.

When you’re an insurance agent, you’re an advisor. People don’t have the knowledge you have, that’s why they look to you. If you can’t be there for them, you can’t be a good insurance agent. Reliable agents need to be transparent, maintain regular communication, and keep clients informed about important updates–ensuring that there are no surprises.

Work with AHI

At AHI Group, we’re staffed with nothing but the best insurance agents. Our agents understand the concerns of the individuals, families, and organizations in the regions we’re licensed in and can help address issues as they arise. We’ll find you affordable protection that checks every box. Give us a call today or request a free quote.

On January 1, 2024, U.S. property catastrophe reinsurance rates rose by as much as 50%. To the average onlooker, this may seem like unimportant news; in the grand scheme of this, it’s just another of many figures going up. However, the status of reinsurance, and its price points, have a direct influence on the rates you’ll pay for your property insurance. Home insurance is just one example of a product that’s being impacted by the jump in reinsurance costs.

How exactly does reinsurance costs rising impact your home insurance? Let’s dig in.

What is reinsurance?

Suppose insurance is an agreement between the insured and the insurer. In that case, reinsurance is an agreement between an insurance company and another insurance company, wherein the latter agrees to cover the former if the former is obligated to cover a catastrophic loss beyond what their premium pool can pay out for. Reinsurers, aka insurance companies for insurance companies, are companies that sell insurance to your typical P&C or commercial insurance companies.

Insurance companies manage their own risk by buying insurance. If an area an insurance company sells home insurance to experiences a massive wildfire, they may find that their premium pool is insufficient in managing all the claim payouts. In this instance, they’ll turn to their reinsurance provider, whose contract states they’re obligated to cover the remaining losses. Having reinsurance also means that insurance companies need to have less capital on hand, which means they don’t have to charge as high of premiums and can invest excess capital elsewhere. Reinsurance also ensures insurance companies can take on more policies and business, as their risk is less overall.

How does reinsurance impact my insurance?

But, like any business in the insurance industry, reinsurance is impacted by things like climate change and inflation. The more losses there are, the more payouts there are. The more payouts there are, the more reinsurance providers are having to dig into their own pool of funds, thereby requiring more capital. They raise their rates, so insurance companies raise the rates for their insured to offset the increased expense.

The result? Higher insurance premiums. Of course, this is nuanced and the impact depends on where you live. Some areas are more exposed to losses and natural disasters than others. Florida’s reinsurance dependency has increased over the last couple of years due to frequent and severe weather-related losses, inflation, and other effects. This has caused some insurance providers to altogether exit the state, and new, high-risk providers have entered.

What are the benefits of reinsurance for policyholders?

Despite the rate increases, reinsurance isn’t a bad thing for policyholders. Quite the opposite, really. For one, it allows insurance companies to offer business in areas that they might not ordinarily consider due to the decreased risk. You may have found your preferred insurance company due to this reason.

Reinsurance also guarantees you receive your true and fair settlement following a loss, even if your insurance provider’s funds run dry. This risk is sometimes higher for smaller insurance companies. Reinsurance comes in to serve as an additional layer of protection for both yourself and your insurer. Your insurer receives the assistance it needs, and you get the compensation you’re entitled to.

Reinsurance also keeps rates down, in a sense. Because the risk is more spread between your insurance company and the reinsurer, your insurance company needs to keep less capital “on-hand” and therefore doesn’t need to charge more in premiums.

How do we find affordable home insurance amid rate increases?

Assessing your insurance needs during a hard market, like the one the insurance industry is currently faced with, is no easy task. At AHI, our agents are here to help you through these difficult times. When it seems like the cost of everything is on an endless rise, it can be overwhelming to find the right starting point! While raised rates aren’t ideal, we can still help you find a good deal.

Here’s what we might suggest:

Review your insurance needs with an agent

Your insurance needs will change year-over-year. Schedule a review with an agent and go over your insurance needs to see where adjustments may need to be made. Who knows? An agent may even be able to identify eligible discounts or highlight potential coverage gaps and vulnerabilities. They can even help you “trim the fat,” so to speak, and remove excess, unnecessary coverage.

Raise your deductible

Your deductible is your percentage of the risk your insurance company takes on, so you’ll be responsible for it when the time comes to make a claim. Roof damage worth $3,500? If your deductible is $1,000, you’ll be required to pay $1,000 towards the repairs before your insurer covers the remaining $2,500. Raising your deductible can qualify you for lower insurance premiums, but talk with an agent before choosing this option. This isn’t ideal for those who might struggle to pay the new deductible amount.

Shop around with an agent

Maybe your current insurer is no longer the best option for you. Ask an agent to help you shop around and find a better rate. You may be able to find a provider who better suits your needs, or one who offers a deal that you qualify for that overall gives you a better rate than your previous provider.

Ask about discounts

Some insurance companies will discount your home insurance if you bundle it with your auto insurance. Many will discount your auto insurance policy if you have multiple vehicles insured through the same policy. There’s plenty of other discounts out there, too. Claims-free, retiree, green home, and more. Ask your agent what discounts your insurer offers and how to qualify!

An agent is your best resource in hard times. Give us a call at 913-839-1478 or request a quote.

To some, having insurance only as a last resort can sound a little odd. You’re paying for it, so why shouldn’t you be using it? In today’s struggle for financial security, it can seem like a slap in the face to keep paying for something you won’t end up using unless you need to.

Treating insurance as a universal safety net, even when it isn’t necessary, can lead to excessive premiums and even more money out of your pocket. Let’s dig into that.

What is insurance used for?

Insurance is a financial product that is designed to protect against specific types of risk. Car insurance, for example, is usually designed to protect against physical repair costs, liability claims, and temporary arrangements for a replacement vehicle. By paying your premiums, the insured transfers over their risk of a larger, more uncertain loss to an insurance company. This model works based on the pooling of risk across many policyholders, allowing the insurer to pay out claims from the accumulated premiums.

Insurance limitations

Insurance isn’t a catch-all. Not all insurance policies are considered the most cost-effective method of reducing risk, especially when considering the risk’s magnitude and likelihood. Policies also have exclusions and limits, so not all scenarios are covered.

Another thing to consider is reliance. Insurance creates a dependency culture, where over-reliance can discourage businesses from managing their risks proactively.

Filing too many claims can increase your premiums

The more claims you file, the more you’ll pay for your insurance. Here’s how that works:

Individuals, entities, and households that have made numerous claims are perceived as likelier to make future claims. This is because they’ve created a pattern of dependence on insurance and are statistically likelier to need to file a claim again. Making plenty of small, unnecessary claims is generally not recommended since this causes your insurance to pay out more, and your insurance company, as a way to combat the risk for themselves, may raise your rates.

You might be thinking, “then what’s the point of insurance?” Well, for one, in many situations, it’s required. Two, it’s meant to be used for losses that would otherwise be financially damaging—not the occasional block of hail breaking a window or two in your home. If your car was destroyed in a wreck when someone T-boned you while running a red light, your insurance would come into play.

The homeowner who filed multiple claims for the hail breaking their windows might end up paying hundreds of dollars more for their insurance down the line, which ultimately outweighs what they would have paid had they simply fixed the windows on their own.

What happens if you file too many claims?

Accidents happen. If you need to file a claim, you should file a claim. However, determining when it’s necessary to file a claim is also a good skill to have.

If you’ve experienced a loss, consult with your insurance agent. This doesn’t mean you’re necessarily starting the process of making a claim. Discuss the full implications with your agent, if the claim is necessary, the estimated damage cost, and how your insurance premiums could be impacted in the future. They’ll advise whether it’s worth filing or if you should pursue other options.

If you have a claims-free discount or accident waiver, you’ll lose those upon filing your first claim. Filing frequent claims will continually reset the clock on these discounts, which you’ll generally receive upon having 3+ years of being claims-free. Again, you should rely on your insurance if it’s a significant loss, but if you’re 50/50 on filing a smaller claim, then you may want to think twice about what it will cost you in the long haul.

Filing numerous claims also has the potential to impact your insurability. Since insurers will need to know your insurance history when buying a new policy, all your past claims in the last 3–6 years will be made known. Your insurer may assess your previous claims and decide to alter the terms of your coverage by reducing limits, increasing your deductible, or even excluding types of coverage that you were previously eligible for. This forces you to bear more of the risk yourself. This can also put you in a bad situation if, say, you were required to carry comprehensive and collision insurance per your dealership’s requirements but your insurer will no longer offer it to you as a result of your claims’ history.

Not sure whether to file a claim? Let’s talk

Experienced a loss but are unsure whether to file a claim? Talk with an agent. They should be able to give you the advice you need on whether it’s worth it to file a claim through your insurer, or if it’s better that you handle the damages yourself to avoid a potential premium increase. It’s always good to know you have insurance to fall back on, but knowing when and where to file a claim is key to keeping your premiums low!

In the face of an unexpected disaster, it’s good to know you have insurance. Say you got into a fender-bender at the grocery store and now you’re having to submit a claim to your insurance company. Big deal, right? We pay premiums for times like these.

Unfortunately, it’s not so cut and dry. Before you receive your settlement, your insurance company may need to conduct a thorough investigation into the accident to determine your percentage of fault and potential liability. Other factors can contribute to a longer wait time for claim payouts. Here’s why.

The insurance claims process, step-by-step

The process of filing an insurance claim can be pretty complicated by itself. There are several steps, but it all begins with getting in touch with your insurance company (or agent) and letting them know about the accident. Policyholders living in no-fault insurance states will always be in contact with their own insurance company, but policyholders in tort (at-fault) states may need to contact the responsible party’s insurance company to file a claim for their injuries or damages.

First contact

The claims process begins as soon as you get in touch with your insurance company, agent (and have them notify your insurer), or in at-fault states, the responsible party’s insurer. This step acts as the first notice of loss, where you inform your/the insurer of your intention to file a claim.

Claim investigation

The grunt work begins. Insurance companies will sent out their individual agents to investigate the accident and fully determine liability. At this point, providing as much information about the incident as possible is critical. Dashcam footage, images, witness statements, receipts, and any other evidence you can conjure is absolutely critical and can expedite the process. The process proceeds when a claim is deemed valid and liability is more or less determined.

Policy review

At this stage, coverage is evaluated to see if each claimant has applicable insurance and which coverage the claim falls under. If coverage exists and can be identified, the claim can proceed. Policies can be complex, however, so reviewing policies can take time.

Damage evaluation

Adjusters and appraisers will need to analyze the extent of the damages done to either your property or vehicle (whichever you’re making a claim for). In extreme cases with auto claims, this can involve a teardown of the vehicle to investigate internal damages. If the claim is for an injury, numerous medical experts may be involved. Either way, this process can take some time.

Arrangement of payment

Once damages have been fully evaluated, you may begin to have your payment arranged. Payment can come from a few different places, so while this step sounds fairly straightforward, it can also take a fair bit of time to process.

If your insurer disputes the claim, this can delay the process of receiving your settlement even more. You may need to hire a lawyer to provide additional proof or go back and forth with your agent (who will advocate for you during this time).

Insurance claims can be complicated, especially if there is more than one party involved

Filing a claim for a rollover or collision with a highway barrier is pretty straightforward, but things get messier every time there’s an additional party. If you’re the only person involved in the claim, it’s easier to investigate than if there are multiple parties.

With multiple parties, insurance companies need to determine liability or may even need to handle multiple claims at once. This can extend the process even more. But other factors are at play as well, which may be increasing the time it takes to receive your settlement without you even knowing.

There’s a lack of labor in the insurance industry

Appraisers, adjusters, and claims investigators are far and few right now in the insurance industry, making the overall process for claims all the more difficult. It can take longer for these workers to make it out to investigate damaged property and even longer for them to come to a final decision.

According to Insurance Business Magazine, the insurance industry is estimated to lose around 400,000 workers by 2026. This is in part as a result of a huge percentage of workers nearing retirement age, but the labor shortage could also be yet another impact of the COVID-19 pandemic.

Insurance fraud calls for more thorough investigations

The more insurance fraud there is, the more insurance companies will need to strengthen their resolve to catch potential fraudsters. So, even if you’re not intending to commit fraud or have committed in the past, your insurance company may likely want to perform a thorough investigation of your accident to ensure all their bases are covered. This isn’t because they don’t trust you in particular – it’s just become procedure as a result of rising fraud incidents.

Unfortunately for all the honest policyholders, this means that claims can take longer, even if they’ve been a trusted policyholder and always paid their premiums on time. It can seem like you’re getting the short end of the stick despite always doing your part, but it’s unfortunately the price we’re all having to pay.

The insurance claims process can be a confusing time, and it can be especially difficult if you feel like your claim is taking a long time, but until there are major shifts in the insurance industry, this may be the way it is for some time. Claims take, on average, between 30-45 days to settle completely, barring extreme circumstances. If you’re unsure about what next steps to take when processing your claim or want the advocacy of your agent, give us a call.