We've been hearing anecdotal evidence for awhile about how the economy is forcing your customers to cut back on their insurance coverage. Now, an Insurance Research Council study is suggesting a positive spin on that trend that casts agents and brokers in a key role as consultants (see the survey at www.irc.web).
According to the study:
28 percent of the respondents with auto insurance coverage reported shopping for lower rates when they normally would not have done so. Among those with auto or homeowners insurance, 15 percent said they had increased their insurance deductibles or reduced the amount of coverage in order to reduce premium costs.
The rest of the story suggests that consumers are giving up more that mere insurance: While 9 percent of survey respondents with at least one household vehicle reported canceling or not renewing vehicle coverage in response to the economic downturn, 31 percent of those canceling auto insurance coverage also reported selling a vehicle. Only 5 percent of homeowners and 14 percent of renters reported canceling homeowners or renters insurance coverage.
While this study clearly illustrates that the penny-pinching trend is now a way of life, the unwritten subtext involves the enhanced consultative role that agents and brokers should be playing in a tough economy.
