Just Don’t Do It – Avoiding Angry Clients

Back in September, 2015, Chris shared his epiphany of late that selling the "cheapest" possible plan is not always in the client's long term best interest. Today, we're shown another example. When you sell plans that are very small, and even those that are too small to be rated by AM BEST, at all, you set yourself (and your clients) up for BIG rate increases. This is because new companies entering the market, especially the little ones, literally buy the business in their first, and sometimes second, year. This means that their rates do not support the amount of claims they expect on that business. They know they are losing money on the front end, but it is a gamble that they can make up for it with the market share they'll be getting and the increases they can impose on that insured group in future years. Heartland 10% Rate Increase This is yet another example of that happening. This is an announcement about Heartland National's 10%, across-the-board rate increase. I believe there will be many more BIG ones like this in the near future. See Chris' original post on selling quality vs. cheap here.

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