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consumer awareness about flood insurance. Still, we discover, most haven't gotten the message. The vast majority of Katrina victims did not have federal flood insurance. They were living on the coast, at or even below sea level-and no flood insurance.
Who's to blame?
Who is to blame? Clients? Carriers? Agents? The Feds? The lawyers? The press? The economy? Not the banks or reputable mortgage companies-they are making a reasonably aggressive effort to require flood insurance on their deals. So, who's the bad guy? None of the above. There are actually two bad guys at fault and they are things, not people. They are selling methods and buying habits .
Yes indeed, these evil twins have created more chaos and misunderstandings in the market than any other segment of the industry possibly could. They have done so by patiently and shrewdly depersonalizing our connection with the market and commoditizing not just our products and services, but the entire insurance buying experience. In the name of advancement and efficiency, they have cut The People out of the profession and replaced them with processes, policies, and price. Needs-based selling, client consultation, and ongoing client education have steadily disappeared as a business practice while client, agent, and carrier apathy, ignorance, and mistrust have skyrocketed.
Are we to give up and give in, or can we fix this mess? Yes we can fix it. Can one person-a producer, an underwriter, a CSR- make a difference? Can you? Yes they can and yes you can. In fact, the only fix that can be had-will be had-one person and one client at a time. The fix? Become a chicken.
Selecting an insurance program
Here's how: According to Carolyn Gorman, vice president of the Insurance Information Institute, there are three common mistakes that home owners (and, I submit, small business owners) make when selecting an insurance program. The first one is not buying flood insurance. The second one is not insuring a home to its full replacement cost value. And third is not having a home inventory. (You can get free home inventory software for your clients through the Insurance Information Institute; www.iii.org.) I suggest adding a fourth mistake: failing to buy umbrella coverage. We can safely assume that the major reasons for these failures fall into three categories:
1. The client can't afford it.
2. The client doesn't want it.
3. The client is ignorant or apathetic.
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