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Peoples Choice Insurance Blog: insurance

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Auto, home insurance clients look online but prefer buying from agent  While U.S. consumers are increasingly turning to digital sources for
quotes and other information, they still prefer personal contact with agents when purchasing insurance products – and are willing to pay extra for
 that personal contact – according to a recent survey.

A survey conducted by global management consulting firm Accenture of more than 4,000 U.S. automobile and home insurance customers found

 that most prefer setting up and paying for their coverage directly through an agent.

Major findings of the survey include:

Nearly three-quarters (76%) of consumers express a preference for setting up and paying for their auto and home insurance policies in

person with an agent, and more than half (58%) indicate a preference for doing so via the Web.

More than one-third (38%) of consumers are willing to pay for personalized advice about the insurance that is best for them – and, of that

 group, more than half (56%) are willing to pay at least 10% more.

When asked where they prefer to obtain quotes, 43% of respondents choose websites, while 26% choose over the phone and 26% in

person. A much smaller percentage (4%) chooses mobile applications.

Almost three-quarters (72%) of respondents also express a preference for getting information about products and prices from an insurer’s

 website. Exclusive insurance agents rank third with 56% of respondents, behind friends and family, cited by 61% of respondents. Search

engines and aggregators rank fourth and fifth at 55% and 54% with respondents, respectively.


“In defining their distribution strategies, insurers must recognize that consumers are becoming more diversified in their channel preferences at

different stages of the buying process,” said Erik J. Sandquist, a managing director at Accenture Property and Casualty Insurance Services.

“Direct insurers continue to gain share as consumers grow increasingly comfortable buying policies online. This means that insurers with an

agency distribution model must adapt to customers’ changing preferences and integrate their agent networks with digital, mobile, and social

 media capabilities.”

 Age is not a consistent predictor of channel preference

Also according to the survey:

Only 37% of respondents aged 18 to 24 say they prefer to obtain a quote via a website, compared to 53% aged 25 to 44 and 41% aged

 45 to 64. However, 10% of the respondents aged 18 to 24 say they prefer to obtain a quote via mobile applications, compared to 5%

aged 25 to 44 and 1% aged 45 to 64.

Nearly one-third (32%) of respondents aged 18 to 24 say they prefer to obtain a quote in person; only the oldest respondents

(aged 65 to 74) are more likely to prefer obtaining a quote in person (39%).

More than two-thirds (68%) of respondents aged 18 to 24 say they would be willing to pay more for personalized advice when purchasing

 auto or home insurance policy, compared to 27% of those aged 45 to 64 and just 16% of those aged 65 to 74.

“Much has been written about young consumers – with their strong propensity for Internet, social media and mobile – fundamentally changing

insurance distribution,” said Sandquist. “Our survey reveals that many young consumers desire personalized advice and are willing to pay more

 for it – and a significant percentage prefers to obtain their quotes face-to-face. There are many demographic, psychographic, lifestyle and other

 factors which can account for differences in how customers would like to be treated. Some customers make decisions almost exclusively on

price while others seek the best advice available, and this is not consistent by age groups. More sophisticated digital marketing, customer

segmentation and analytics are needed to attract customers and deliver more personalized and relevant products and experiences.”

Insurers have opportunity to build customer loyalty and establish differentiation

Among the survey’s other findings:

One-quarter (26%) of respondents either do not plan to renew their auto or home insurance policy with their current insurers or plan to

 look at other insurers’ offerings.

Nearly half (46%) of insurance customers think that the products and services offered by different insurers are essentially “all the same.”

More than one-third (38%) of consumers are willing to pay for personalized advice about the insurance that is best for them – and, of that

 group, more than half (56%) are willing to pay at least 10% more.

“Our survey research reveals a significant opportunity for insurers to grow market share as many customers plan to shop around when renewing

 their policies. Price remains the most important buying factor which will continue to put pressure on insurers to improve their cost structures. At

 the same time, our research reveals that a carrier’s distribution model can be a strong differentiator, given the relative importance of factors such

 as interaction channel, advice and speed,” said Sandquist.

One Response

A.Mohamed Ali Says:

 client and agent live…99% of the people who bought online will certainly regret several times…

1. No one will be there to take care of them during claims

2. Renewal notices may not reach them

3. Updation of product information and upgradation of products may not be possible when someone buys online.

4. There will be no personal touch in online purchases.

5. Online business is a pure selling process where as service of a professional agent will help prospects and clients buy insurance plans

best suited to him/her

So It is 100% true that informed customers will always prefer buying insurance products from a known, reliable and responsible agent.

Yes, Insurance Industry is based on Relationship…it is a relationship business. the relationship should last longer … as long as the

This is my personal experience:

3 decades of buying insurance products for a group of companies and

more than a decade providing Insurance Solutions and helping people buy insurance products.

I love all my customers and all my customers love me and send me love letters appreciating my Service with Smile.

A.Mohamed Ali



Leave a Comment

Eastern seaboard businesses continue their struggle to rebuild after Hurricane Sandy.  In terms of economic losses, the October 29, 2012 storm
 will be remembered as one of the largest natural disasters in U.S. history.

Many residents and businesses, particularly in the hardest hit coastal areas of New Jersey and New York, were caught off guard by the
late-season storm.  In addition to the property destruction caused by high winds and flooding, power outrages created big headaches and huge
financial losses for many small businesses.

Weather experts from the National Oceanic and Atmospheric Administration (NOAA) are predicting an “active” 2013 Atlantic hurricane season.
 The six-month season, which began June 1, typically peaks between August and October. Now is a good time to put a disaster preparedness
 plan in place to protect your employees and your business.

The SBA and Agility Recovery recently hosted a free webinar giving tips on how to prepare for Hurricane season.  But it doesn’t matter if you’re
 in the Gulf Coast or the Upper Midwest—all kinds of risks exist, and small businesses are particularly vulnerable.

Go to this link Download Adobe Reader to read this link content to download the slides from the recent “Protect Your Business This Hurricane Season” webinar.  You can also
view the recorded webinar at any time. You will need Windows Media Player 9 or higher.

Meanwhile, there are a few things you can do, at no cost, to jump-start your business continuity plan:

Determine your greatest risk potential.  It might come from wind damage or the inland flooding that typically follows the tropical storm’s

 heavy rains.  Meanwhile, your business could suffer financial losses due to road and bridge closings in the aftermath of a hurricane. 

Power outages are a major threat, especially to businesses in the food and hospitality industries. What would happen if you had to shut

 down your business for several days?  Look at the building where you do business—inside and out—and assess the risks. If you do this

 early enough, you’ll have time to do structural upgrades—like impact resistant doors and windows—that can prevent possible future

storm damage.

Calculate the cost of business interruptions for one week, one month and six months.  Once you’ve done that, you’ll be able

investigate insurance options or build a cash reserve that will allow your company to function during the post-disaster recovery phase.

It’s also a good idea to develop professional relationships with alternative vendors, in case your primary contractor can’t service your

needs.  Place occasional orders with them so they regard you as an active customer. 

Review your insurance coverage.  Contact your agent to find out if your policy is adequate for your needs. Consult with a business

 insurance expert to advise you on the right coverage for your situation. When buying insurance, ask “How much can I afford to lose?”

  It’s a good idea to know the value of your property.  You also may want to look into flood insurance.  According to the U.S. Geological

 Survey, floods are the leading cause of natural disaster losses. Most property insurance policies don’t cover basement flooding. 

Build a crisis communications plan so you’ll be able to make sure your employees, customers, vendors, and contractors know what’s

 going on.  Establish an e-mail alert system.  Make sure you have primary and secondary e-mail addresses for your employees, and

everyone you do business with.  Create a Facebook page, and use Twitter to let the community know you’re still in business, and in the

 process of recovering after the disaster.

Consider a Telework Policy.  Prepare for the possibility that employees won’t be able to get to work by developing an emergency

 telework policy. Read  “How To Make Telework Work for your Small Business” for more information.

Each month SBA and Agility Recovery hosts a free webinar providing business continuity strategies. The August 13th webinar will focus on
 useful tips for building your own disaster preparedness plan.   Space is limited so register now.

Related Resources

    I was just on a 4 hour webinar this week and was told changes are coming and for the better. In October. Monday, July 15, 2013
National Flood Insurance Program Community Rating System |

I thought this would answer a lot of question's I've been receiving about the Flood program. Peoples Choice is always staying on top of things that concern our area's of business Florida, Long Island. We go through training on a regular basis so we can keep our client's informed. If you have any questions or are interested in the program. You can call our office speak to Mike DiGennaro who has been through seminars and has helped the community. To overcome any questions they may have. Just as a last note in October there are going to be changes in the National Flood system. Pricing will be a major component. So if you had intention's to consider this do it forms are available on our website and we will keep you informed.

Insurance News - Home Insurance Companies Abandoning Long Islanders

Insurance News - Home Insurance Company WASHINGTON, June 24 -- The office of Sen. Charles E. Schumer , D-N.Y., issued the following
news release:

U.S. Senator Charles E. Schumer today stood with homeowners and the Long Island Housing Partnership (LIHP) to criticize insurance
companies for dropping Long Island homeowners' coverage after Superstorm Sandy, even on homes not damaged by the storm. Recently,
 Schumer's office has been receiving dozens of complaints from constituents saying that their homeowners' insurance policies have been
canceled by carriers; many of these constituents have had these policies for years with no claims, and many had no storm damage. Long
Islanders already have limited homeowners' insurance options: Allstate, State Farm and Liberty Mutual issue the vast majority of policies on
Long Island, and all three have been withdrawing from the Long Island market. Homeowners are now being forced to purchase policies from
the "excess lines" market which is often two- to three-times as costly as policies in the "standard market," and generally offer less favourable
terms. Schumer today urged these three insurance companies to reverse their decisions to cancel these homeowners' policies, and urged the
Federal Emergency Management Agency (FEMA) to penalize them if they don't by limiting or prohibiting their participation in the National
 Flood Insurance Program, which is operated by FEMA. All three companies participate in the lucrative National Flood Insurance Program,
 where they sell insurance policies for a fee and pass on the risk to the government. Schumer said that unless they change course and
continue to insure Long Islanders, FEMA should reduce their fees, limit their participation or prevent them from participating altogether.
Schumer will note that by denying homeowners coverage, the insurance companies are driving up the cost of insurance for homeowners, which
will lead many to drop coverage altogether, increasing the risk to the federal government when responding to the next disaster. "It's bad enough
 that homeowner insurance policies are limited on Long Island, but now - with precious little justification - policies are being dropped left and right
, even for those who paid all their bill on time and had little-to-no storm damage" said Schumer. "Many of these homeowners were not even
affected by Superstorm Sandy and now they're being forced into extremely expensive plans. These insurance companies should not leave
Long Island families and the federal government holding the bag and so today I am urging them to put a stop to these policy cancellations." "It is
important for homeowners on Long Island to have the ability to secure and maintain quality affordable homeowners insurance for their home,"
said Peter Elkowitz , President/CEO of the Long Island Housing Partnership, Inc.(LIHP). LIHP has seen an increase in standard companies
taking advantage of non-renewal rights, which means that homeowners must seek insurance policies in the excess market. This market is priced
+ two- to three-times higher than the standard markets. Insurance companies have been steadily withdrawing from Long Island for years
 (beginning in the aftermath of Hurricane Katrina), but the pace of the withdrawal had slowed in recent years. Evidence from the excess lines
 market, however, indicates that withdrawals are increasing again in the wake of Superstorm Sandy. In the first five months of this year alone,
homeowners have taken out over 3,700 new polices, well ahead of last year's pace. Schumer's office has received complaints from homeowners in areas including Oceanside, West Babylon and
Southold. One specific complaint came from Founders Village which is home to 92 senior units. The premiums at Founders Village have gone
 from approximately $32,000 to $86,000 even though they did not file claims after Hurricane Lee, Irene or Sandy. Schumer today wrote to FEMA
, urging the Agency to penalize the major insurance companies that have dropped policies on Long Island and other disaster-prone areas. In the
 case of insurance carriers who participate in FEMA's National Flood Insurance Program, FEMA should reduce their fees, or limit their
 participation on the program. In especially egregious cases, FEMA could prohibit their participation altogether, Schumer said. When insurance
carriers withdraw from disaster-prone areas like Long Island, they raise the cost of insurance to homeowners, forcing them into policies with
 less generous coverage and leading many to drop coverage altogether. The result for FEMA is that there will be greater uninsured losses in
 the next disaster, leaving greater costs to be borne by already-strained federal disaster aid funds. Accordingly, Schumer argued, it is in
FEMA's interest to discourage the withdrawal of major carriers from disaster-prone areas. Dear Administrator Fugate, I am writing to express my
 grave concern regarding the ongoing withdrawal of major insurance carriers from the Long Island market, and to urge the Federal Emergency
Management Agency to take prompt action to discourage this and similar withdrawals. It is within FEMA's authority, and in FEMA's interest, to
 discourage carriers from withdrawing from disaster-prone areas. As promptly as practicable, FEMA should prohibit carriers who withdraw
 from these markets from participating in FEMA's National Flood Insurance Program as "write your own" carriers. As resilient Long Islanders
 return to their homes to rebuild, their insurance carriers are running the other way. My office has been inundated with phone calls from Long
 Islanders whose insurance companies are turning their backs on them- in some cases, homeowners who have had policies with the same
 carrier for decades, and never had an insurance claim are being told their policies will not be renewed. The homeowners' insurance options on
Long Island are already extremely limited. The loss of insurance coverage is forcing homeowners into the "excess lines" market where middle
class homeowners are often paying double the premiums for less coverage. The three major carriers on Long Island, Allstate, State Farm and
Liberty Mutual, are refusing to write new polices and increasingly declining to renew existing policies. This trend started well before Superstorm
Sandy hit last year, but appears to have gained momentum in the aftermath of Sandy. Data from the "excess and surplus lines" segment of the
 market indicates that more and more homeowners are being forced to sign up for these policies, which are more expensive and provide less
 coverage than standard policies. The number of new policies in the excess lines market has sky rocketed over the last decade. In the first five
 months of this year alone, homeowners have taken out over 3,700 new polices, well ahead of last year's pace. The average premium on new
excess lines polices this year is over $2,500, with the most expensive premiums averaging over $20,000.

  Even homeowners not affected by Superstorm Sandy are seeing their carriers decline to renew their policies, forcing them into the excess lines
 market. This will lead many homeowners to conclude insurance is simply not worth the cost, and they will go without insurance altogether. In the
 event of another major disaster, FEMA would be faced with higher demands for disaster assistance, as would other federal responders.
 Accordingly, FEMA has a keen interest in persuading private insurers to maintain their share of the risk in these markets. The insurance
 industry has a responsibility to guarantee a financial cushion for those in a time of need, and plays a critical role in absorbing some of the risk of
 natural disasters so the entire burden is not covered by taxpayers. Yet, insurance companies are walking away from those responsibilities.
Therefore, I respectfully urge you to review the withdrawal of major insurance carriers from Long Island and other disaster-prone areas.
Because these withdrawals can increase the risk to the federal government in the event of a natural disaster, FEMA should restrict of prohibit
insurers engaged in such withdrawals from participating in the National Flood Insurance Program. Carriers who participate in NFIP's "write
 your own" program receive generous fees from FEMA in exchange for merely selling the policies -- all of the risk is underwritten by the federal
 government. Insurers whose actions increase the risk borne by FEMA should have their fees for participating in the write your own program
reduced, have their participation in the program limited, or in severe cases even terminated altogether. Insurance companies should not abandon
 New Yorkers as they try to stabilize their neighborhoods in the wake of Superstorm Sandy, and FEMA should not make it easier for them to
 do so by allowing them to continue to profit from participation in the write your own program. I appreciate your prompt attention to this matter
and look forward to working with you to ensure Long Islanders and the federal government are not left holding the bag. Sincerely,
Charles Schumer TNS 30VitinMar-130625-4402209
Copyright: (c) 2013 Targeted News Service
Wordcount: 1439
ies Abandoning Long Islanders

Excerpt from Targeted New Service

Will my car be covered if My vehicle drowns.

Yes of course . People often wonder if I drive in a huge puddle will I be covered if my car drowns. Well of course it will say's mike at Peoples Choice Insurance Agency as long as you have the comprehensive on you vehicle . . Flash flood happens and the car can be in the middle of it. But remember this will count as an incident  with your carrier . The first thing to do after getting pictures, a camera phone will do. Do not drive the vehicle if the car is idling poorly. Have it towed get it to the nearest dealer and they will send out a adjuster. Remember there will be a deductible so weigh out your options. You need to protect your insurance company as best as you can. Today after Hurricane Sandy and all the claims in New York and Florida your insurance company should be your best friend and must be treated as though. Right now claims are not your best friend. Insurance is very hard to place in these prone area's. If you have a hard time placing insurance call us where in Long Island New York, Florida, and

Written by

Michael Francis Digennaro

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