Confie Seguros believes that this acquisition broadens its presence throughout California and places it on track to become the leading national insurance distribution company primarily focused on the needs of Hispanic consumers.
With the acquisition of West Coast, Confie Seguros said that it now has an annual run-rate of $75 million in revenues, well over 300,000 customers, $250 million in annual written premiums, and over 80 retail brokerage stores throughout California.
Mordy Rothberg, president of Confie Seguros, said: "We expect to integrate West Coast into our operations quickly so we can leverage our existing infrastructure to introduce complementary insurance products - such as life and homeowner's insurance - to serve all of our consumers' needs."
Source
Wednesday, October 29, 2008
Wednesday, October 22, 2008
Do away with work-based insurance
THE editorial criticizing John McCain's healthcare plan for moving the country away from work-based insurance is misplaced. There is little logic to basing the cost of medical insurance premiums on employment status. Workplace insurance arose during World War II because wage controls allowed employers to compete for workers on the basis of benefits only.
Basing premiums on group affiliation makes sense only when there is a statistical relation between the composition of the group and the financial risk to the insurer. For example, older people pay more for life insurance because their heirs are more likely to make a claim in the coming year, and novice drivers pay more for auto insurance because they have more accidents. Unless you work in a hazardous environment, the number or average age of your co-workers has little bearing on your likely healthcare requirements.
Administrative cost advantages associated with group affiliation could be achieved by establishing healthcare purchasing groups independent of employment, benefiting the unemployed and self-employed as well as the company employee. The time for work-based insurance has long since come and gone.
Source
Basing premiums on group affiliation makes sense only when there is a statistical relation between the composition of the group and the financial risk to the insurer. For example, older people pay more for life insurance because their heirs are more likely to make a claim in the coming year, and novice drivers pay more for auto insurance because they have more accidents. Unless you work in a hazardous environment, the number or average age of your co-workers has little bearing on your likely healthcare requirements.
Administrative cost advantages associated with group affiliation could be achieved by establishing healthcare purchasing groups independent of employment, benefiting the unemployed and self-employed as well as the company employee. The time for work-based insurance has long since come and gone.
Source
Wednesday, October 15, 2008
Drivers Could Get Discounted Insurance by Gaming
Insurance company Allstate is exploring a new program that would reward the players of specialized video games with lower auto insurance rates.
The company will soon begin testing the effectiveness of the games in accident prevention through a study of 100,000 Pennsylvania drivers between the ages of 50 and 75. The likelihood of an auto accident is said to climb when drivers reach their mid-60s.
Developed by Posit Science, the computer games are "designed to reverse age-related cognitive decline and improve visual alertness," according to the report. In-game activities go beyond driving activities, with one, Jewel Diver, requiring players to follow the movement of a jewel and deduce where it is hidden after fish fill the screen.
With the help of Posit, Allstate will track the total amount of hours played and then compare the accident rates of gamers to non-gamers. Allstate suggests drivers play for at least 10 hours, and will decide next year if the program goes nationwide.
Source
The company will soon begin testing the effectiveness of the games in accident prevention through a study of 100,000 Pennsylvania drivers between the ages of 50 and 75. The likelihood of an auto accident is said to climb when drivers reach their mid-60s.
Developed by Posit Science, the computer games are "designed to reverse age-related cognitive decline and improve visual alertness," according to the report. In-game activities go beyond driving activities, with one, Jewel Diver, requiring players to follow the movement of a jewel and deduce where it is hidden after fish fill the screen.
With the help of Posit, Allstate will track the total amount of hours played and then compare the accident rates of gamers to non-gamers. Allstate suggests drivers play for at least 10 hours, and will decide next year if the program goes nationwide.
Source
Wednesday, October 8, 2008
Insurance chief cuts car rates
State insurance Commissioner Jim Long is leaving office with a bang, ordering a whopping 16.1 percent decrease in auto insurance premiums, The News & Observer's David Ranii reported .
Insurance companies in the state have asked for a 12.9 percent increase -- the largest jump they have sought since 1994. But Long ruled that amount wasn't justified by the data they submitted.
The order by Long, who isn't seeking re-election after 24 years in office, came after a monthlong hearing in which his staff squared off against the N.C. Rate Bureau, which represents insurers.
The Rate Bureau has not decided whether to appeal the order to the courts.
If Long's order stands, the Insurance Department estimates the savings for the state's motorists will exceed $1 billion.
Source
Insurance companies in the state have asked for a 12.9 percent increase -- the largest jump they have sought since 1994. But Long ruled that amount wasn't justified by the data they submitted.
The order by Long, who isn't seeking re-election after 24 years in office, came after a monthlong hearing in which his staff squared off against the N.C. Rate Bureau, which represents insurers.
The Rate Bureau has not decided whether to appeal the order to the courts.
If Long's order stands, the Insurance Department estimates the savings for the state's motorists will exceed $1 billion.
Source
Wednesday, October 1, 2008
So Many Potential Customers, So Little Follow-Up
For all the hundreds of millions of dollars companies spend on advertising their car insurance policies, they're not getting a very high conversion rate.
According to a new study from J.D. Power and Associates, auto insurance companies on average are successfully signing only 2% of all shoppers. For the most part, the companies lose prospective customers before even offering them a quote, says Jeremy Bowler, senior director of the insurance practice.
"It's a good thing the industry has a phenomenal policy retention rate," Bowler says.
The reasons that many people don't request a quote are varied, Bowler says. Some consumers are put off by a company's lack of bundling options (i.e., the ability to have home and auto insurance through one company), while others have received negative word of mouth about a company from friends or family. Or the process involved to get a quote may be too cumbersome. "Some companies are rooted to traditional sales processes," Bowler says. "That's sort of an inhibitor; you're making it hard to get a quote."
According to the survey of nearly 8,500 people, 36% of auto insurance customers have actively shopped for a new insurer in the past year. When asked about various companies, 38% of those shoppers did not recognize many of the country's 26 largest auto insurers, and an additional 39% don't care about the brands.
"What's left is a group of people who have strong feelings about certain companies, and some of those are negative," Bowler says. After eliminating the 6% of shoppers who said they would avoid certain insurance companies, the pool of prospective customers is down to 18% of auto insurance shoppers, he says.
Of those 18% who might be willing to switch, only 10% ask for a quote (and only half of them make the switch), Bowler says. With many insurance companies gathering most of their personal data through the quote process, insurance companies are leaving a lot of leads that are not followed up on, Bowler says. "[Insurance companies] spend all this money advertising to get people to come to the door, and they only follow up if the customer has filled out an application," he says. "Insurance companies have no way to measure how many more prospects escaped earlier in the shopping process--whether they were driven away by a cumbersome quote process, a non-responsive agency or misconceptions about price or service quality."
Source
According to a new study from J.D. Power and Associates, auto insurance companies on average are successfully signing only 2% of all shoppers. For the most part, the companies lose prospective customers before even offering them a quote, says Jeremy Bowler, senior director of the insurance practice.
"It's a good thing the industry has a phenomenal policy retention rate," Bowler says.
The reasons that many people don't request a quote are varied, Bowler says. Some consumers are put off by a company's lack of bundling options (i.e., the ability to have home and auto insurance through one company), while others have received negative word of mouth about a company from friends or family. Or the process involved to get a quote may be too cumbersome. "Some companies are rooted to traditional sales processes," Bowler says. "That's sort of an inhibitor; you're making it hard to get a quote."
According to the survey of nearly 8,500 people, 36% of auto insurance customers have actively shopped for a new insurer in the past year. When asked about various companies, 38% of those shoppers did not recognize many of the country's 26 largest auto insurers, and an additional 39% don't care about the brands.
"What's left is a group of people who have strong feelings about certain companies, and some of those are negative," Bowler says. After eliminating the 6% of shoppers who said they would avoid certain insurance companies, the pool of prospective customers is down to 18% of auto insurance shoppers, he says.
Of those 18% who might be willing to switch, only 10% ask for a quote (and only half of them make the switch), Bowler says. With many insurance companies gathering most of their personal data through the quote process, insurance companies are leaving a lot of leads that are not followed up on, Bowler says. "[Insurance companies] spend all this money advertising to get people to come to the door, and they only follow up if the customer has filled out an application," he says. "Insurance companies have no way to measure how many more prospects escaped earlier in the shopping process--whether they were driven away by a cumbersome quote process, a non-responsive agency or misconceptions about price or service quality."
Source
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