Since we started this company, insurance premiums for cars keeps going down the allowable rate set by the Insurance Commission. Besides the fact that it is a cut throat industry, it has so many more factors why the rates are still down sloping.
Assured are misguided and mislead. My companies vision is to re-educate the insuring public; i have written this and said this since we started. Pinoys don’t understand insurance! Pinoys have many wrong informations about insurance, be it Life and non-Life. Why? because Pinoys loves tsismis, they hate to educate themselves with facts. They buy because its cheap, they buy because its their cousin or sibling who sells them insurance, they buy because the bank says so. Pinoys don’t understand the logic and the context of insurance. Once we start to learn more about insurance, we will know the value of it, why it should’t be bargained. The sad truth about this is that Insurance might be the last priority our government that is why we have poor insurance law. This is also one of the reason why lots of people suffered when their insurance companies shut down or the insurance firm is a fraud itself.
2. Unlicensed Call Center Agents. Because of its cut throat nature, big insurance brokerage and car dealerships go in to the call center method. They hire unlicensed ( doesn’t know anything about insurance) call center agent to call prospects and give the lowest possible rate without even determining if their prospect is high risk or not. Shot gun approach so to speak. They just fax and call and rely on the lowest rate that they gave. Try calling them and ask question, for sure they will answer you nothing! Nothing related to insurance.
3. Bank Managers got insurance quota. Since insurance is a pre-requisite for a loan, bank managers are given insurance quotas and so the branch
manager doesn’t care of the insurance underwriting code and drops the rate. The sad thing here is that you thought you got a good deal, unfortunately the bank just used your insurance premium payment to earn more money for themselves. And try calling your branch manager while your house is burning or if you got into an accident, they might not know what they sold you worst they might not answer your call!
4. Mediocre Insurance firms. Why would a legitimate insurance company sell low insurance premiums and pay huge amount in claims? If the answer is to serve the public, then it is not an insurance firm, it is a charitable institution. They should partner with PCSO and not IC. There is no such thing, there is always a catch why they sell below the market rate! it is either you have been fooled by the sales agent or the mediocre insurance firm has other agenda. Its either they need cash flow to pay their debts or they are just plain stupid.
5. Car Dealerships extra income. I used to be a car salesman and during that time, selling insurance is my 2nd source of income. Nowadays, most car dealerships can’t share insurance commissions to their agents already. Why? because it is a cut throat industry. So they have no option but to compete with the market and drop their rates.
6. Volume means Power. In this industry, if you sell volume then the insurance company is at your mercy. Sad to say but most NON-LIFE insurance companies in the Philippines has no pride at all. Imagine BDO, the largest bank in the country today, sells for an insurance company, just a prerequisite for a loan whether its a business loan, housing loan or car loan, imagine the volume that they can produce with all their branches. Millions, hundred of Millions worth of insurance premiums! In this case, whatever rate they ask they will receive because the genie is in the bottle. Insurance company will kneel to them and kiss their asses because that’s a lot of money. But then again, Insurance has principles, warranties and clauses…but was already bought by money.
Read all 6 factors again, all i mentioned their was selling, none was about service. Insurance is not only about selling but after sales service. Those who sold cheap insurance to you will not show up when you need them the most, guaranteed! Why? they did not earn from you so why would they waste time? With responsible insurance agencies like us, your insurance experts, we might not be able to beat their prices but we guarantee our after sales service. I personally trained my people to talk with sense; to advise our clients their options, we take time and we analyze what is best for them when they need us the most! Then, our clients reap the best savings from their insurance. I really wish that our government will soon look into the insurance industry and implement strict laws and regulations that will protect the public in general because i dont want it to be ironic.
Always trust your legit and responsible insurance agents and brokers. Di bale na mas mahal ng konti, for sure mas maasahan mo sila when you need them the most. Kung malaki ang difference, think again…you can always choose the cheaper one but don’t give me chance to say this: ” I told you so!”