“Twas the day after Christmas… Bob Cratchit, independent agent,arrives a bit late at the Tiny Tim Agency, having made merry theday before with his family and friends. To his surprise, he noticesthrough the window the familiar form of Ebeneezer Scrooge, vicepresident of market performance for Dickens Insurance Group, amajor international carrier. The carrier's slogan, “When at risk,give oem the Dickens!' was reported to have made Dickens one of themost recognized brand names in the world.

While Bob has enjoyed a long association with the carrier, hethinks it has declined in the personal service he once foundadmirable. For the last few years, Dickens has operated more like adistant conglomerate than the customer-focused mutual protectionsociety from which it grew. Commissions slowly eroded, underwritingbecame automated, and cash flow became king. Seeing Scrooge alreadywaiting for him, Bob only can assume the news will get worse:cutting his commissions further, announcing creative reserving toeliminate his contingency again, and restricting his propertycoverage availability to pig iron under water within five blocks ofthe agency.
Much to Bob's shock and awe, Scrooge leaps to his feet, envelopsBob in an energetic bear hug, and beams joyously.
“Bob Cratchit, my fine fellow! Merry Christmas and a Happy NewYear!obCrLf
“Er, Mr. Scrooge, umoyou seem in a good mood,obCrLf Bobstammered.
“More like a shocking mood, judging by the look on yourface.obCrLf
“Quite a shock-considering our last conversations prior to theholidaysoobCrLf
“Oh, you mean when I told you your growth was unacceptable, yourprospecting a humbug and your contract was hanging by a thread?That conversation?obCrLf
“Yes, that would be the one.obCrLf
“Please accept my apologies, Bob. It was my accusations that were ahumbug. I didn't know that then, but I know it now.obCrLf
“What changed your mind?obCrLf
“Bob, let me share with you an amazing experience I had onChristmas Eve.
“As usual, I went by the club on my way home for a few libationsand then straight home. After turning off SportsCenter, I wasreadying for bed when an apparition appeared in my den. Naturally,I thought it was just a burned-in image on my plasma TV, but itspoke to me! Claimed it was the ghost of American States and hadbeen sent to warn me I was risking my company's future if I didn'tchange our path. I assumed I was drunk. There was more Grey Goosethan grave about him. But he howled and shook these incrediblechains until I listened. Seems if I wanted to avoid some horriblefate, I had to agree to meet with three other ghosts that night.I'd have agreed to anything to stop his howling and clanking, so Isaid oBring it on!'
“At the stroke of one, up pops this glowing visage who announcesshe is the Ghost of Insurance Company Past. oLong past?' Iasked-quite reasonably, I thought. oNo, your past!' she snapped.Great, an apparition with an attitude. But you know me. Like a softmarket, best just to ride it out. So off we go. She showed me ourold offices where I apprenticed as an underwriter. And there wasold Fezziwig, my first supervisor! Gosh, it was great to see him.It was like I was young again, with him showing me the ropes ofproperty underwriting. I'd forgotten how we actually took time toinspect properties, sometimes right alongside the agents! Gosh,when was the last time you and I checked out some of yourprospective property risks? Not that long ago, right?obCrLf
“Somewhere in the mid-o70s, I think.obCrLf
“Whatever. But you know what, Bob? I'd forgotten how much fun itwas to get into those buildings and crawl around. To actually seethe difference between masonry and masonry veneer. To talk withprospects and see firsthand the attitudes that create moral ormorale hazards. I felt energized, with that same burst ofenthusiasm and sense of making a difference through real hands-onapplications of my studies. Just hanging out with Fezziwig was likea master's degree program in underwriting! And it reminded me ofhis core belief-that any property risk, given the proper insuredattitudes toward hazard and housekeeping, could be profitablyunderwritten by an experienced, trained professional who knew howto properly adjust coverages and rates to meet the carrier's needs.It felt great to be one of those underwriters, thanks to Fezziwigtaking me under his wing.
“Just as I realized those were the happiest days of my life, thespirit left me! I was beginning to wonder if she had been a dreaminduced by libations when a giant of a man appeared, dressed inroyal robes and carrying a torch! He announced that he was theGhost of Insurance Company Present and off we went.
“Bob, I gotta tell you. All he did was show me what I see everyday-automated class underwriting, direct bill escrow, coverageapprovals based on reinsurance treaties, the whim of the day fromhome office, and a nearly total focus on cash flow to createinvestment returns. I always thought those were fine things andgrowth at any cost was the best of all worlds. Without growth,where would we gain the cash to invest in more intricate andcomplex instruments that are created to goose our returns andimprove our profits, driving our stock prices through the roof sowe can all cash in on our options? Underwriting an individualproperty risk is well and good, but it's too inefficient if you aregoing to play with the big boys! That's why we have to keep pushingyou agents into either giving us more revenue or we cut you off!It's not about the profitability of your accounts. Heck, some ofthe smaller agents write the most profitable, loss-free business!But that cash flow monster is a hungry beast, and once we startedtrying to fatten him up, his appetite seemed to expand like BuzzLightyear-to infinity and beyond!
“But after being reminded by the Ghost of Insurance Company Past ofwhat I had left behind in haste to grow the beast, all of what wedo today seemed so cold and lifeless. So here I was, strugglingwith why everything I had been so sure was an improvement nowseemed almost a travesty, and this ghost disappears!
“Well, Bob, as you might guess, there was one more ghost toappear.
“The third ghost, the Ghost of Insurance Company Yet to Come, was anightmare. I'll spare you the details, but his point was if Dickensdoesn't change its ways, we are going to end up like a supernova:growing into a burst of brilliance, only to implode and collapse,creating a black financial hole so deep even a government bailoutconsisting of billions of taxpayer dollars will disappear like araindrop into a deep well.obCrLf
“Oh, come on, Ebeneezer. No way would the government be stupidenough to do that once it was obvious you were in too deep, and allof it due to greed.obCrLf
“I know, it sounds crazy. But I know what the spirit showed me.Because the first two were right, I have to assume this future heshowed me is credible. It literally scared the stock shorts offme.
“Well, Bob, I awoke Christmas morning changed. I swore to thespirits I had learned their lessons and I would change my ways. Sohere I am. And I promise you. We will have stable markets again,with reasonable underwriting and rates. We will strive to have bothsoft and hard markets blend into one, not continue this randomlurching from one into the other. And Bob, I am going to doubleyour commission! Yes, Bob, and the Tiny Tim Agency will not die forlack of markets but thrive, I swear! Florida will have windstormand property markets again! Ditto for Texas, Louisiana,Mississippi, Alabama, Georgia, the Carolinas and LongIsland!obCrLf
“And you'll quit over-reserving to gut mycontingencies?obCrLf
“Don't push it, Bob. I think stable markets, restored underwritingprowess and adequate commissions are doing pretty well for onenight, so cut me some slack.obCrLf
“You're right, Ebeneezer. You are a changed company, and Iappreciate it.obCrLf
“Well, we can discuss the particulars over a Christmas latte atStarbucks. Merry Christmas, Bob!obCrLf
“Merry Christmas, Ebeneezer!obCrLf
Could this tale become true? Dare to dream-it's the season formiracles! Merry Christmas to all! As the Tiny Tim Agency said, “AndGod bless our true partners, every one.obCrLf
Chris Amrhein is an insurance educator and speaker with morethan 30 years in the industry. He is also chief fun officer ofwww.insuranceisfun.comand author of “Yes, Virginia, There is Insurance.obCrLf ContactAmrhein at [email protected].