Do you want “fries” with your insurance?
Companies are causing disruption in all fields of commerce, why would Insurance be any different. Well it’s not and in many cases the said Insurance disruptors are probably one and the same that you will be accessing via your Insurance Broker, maybe they will have a different name for their direct market shop front.
So what the hell is a disruptor then? In the business world a disruptor can be defined in many ways as it all depends on what side of the fence you’re sitting on. In essence though, I suppose you can summarise that a disruptor is a business that enters a market with a new idea that challenges the way that things have been done historically.
So when McDonalds entered the Fast food market with the concept of making and selling burgers constructed using the same ingredients over and over again and prepared exactly the same way over and over again, they were a disruptor to the local burger shop. So, McDonalds was a disruptor.
Another example and perhaps not as clearly evident is the Australian Surfboard Manufacturing industry. An industry where surfboard shapers toil in factories creating individually hand crafted products for their customers based entirely on discussing what the individual wanted and what sport experience, personal weight and height plus fitness they possessed. All of this came at a cost. However, in came the Disruptors and flooded the market with much cheaper versions which were made overseas to a one size fits all basis.
In both scenarios, the norm has been challenged and with a healthy dose of specifically pinpointed advertising, enough hype was created to ensure a shift of buying habits of the consumer. So if the idea of mass churned out products is so appealing then why is the burger giant now proclaiming that the best way to buy a burger is come in to the store and create your own? Right down to selecting the type of bun through to the cheese and condiments. Also why is the same online distributor of Surfboards that I looked at the other night replaced their one page of purchasable surfboards with now 3 pages of surfboards of various sizes and shapes along with a 4th page which invites you to submit your details to them so they can make you a custom surfboard that takes into account your height, weight, surfing experience and fitness?
..........................I am seeing a pattern emerge here and I think it is called everything that was old is new again!
Distribution of insurance products is no different to burger chains or the surfboard manufacturing industry. Direct insurers as they are called, attempt to grab your insurance premium dollar with tales of parachuting monkeys, singing horses and dirt cheap premiums. You can purchase your weekly groceries and pick up your Home & Contents Insurance from the same place, will we get to the stage of a teenager’s voice scratching through the speaker at the local Drive Thru “do you want an Insurance Policy with your fries and burger.”
But as with all of these examples, these businesses are NOT about you and making your life easier, more affordable or less stressful, it is purely about corporations rapidly increasing profit margins and increasing their market share. There is little or no consideration as to what your individual circumstances, wants or needs are presently or how these will evolve in the short or long term. What also is certain, as with the two examples illustrated above, eventually they will change the way they do things and whatever benefits you have made today will be lost tomorrow.
I want you to ask yourself these three questions;
- Are you being protected or are you just being sold an insurance policy?
- Does your insurance company or current insurance adviser care where you will be in 10 years’ time
- Do you know what Insurance Advice is?
If you answered NO to any of the above, you need to talk to someone who clearly has the information and advice that you are seeking.
At Agile Insurance Advice we are a boutique insurance advisory firm with a focus on learning what you do, where you and your business have come from and where you aspire to be in the future. We craft an advice package which helps protect you along the journey to where you want to be in 5 years, 10 years or 20 years’ time.
Why do we do it this way? Because somethings were always meant to be about you.
So, when you next look at your insurance policies, do you want some fries, I mean "advice" with that!