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

While Bob has enjoyed a long association with the carrier, he thinks it has declined in the personal service he once found admirable. For the last few years, Dickens has operated more like a distant conglomerate than the customer-focused mutual protection society from which it grew. Commissions slowly eroded, underwriting became automated, and cash flow became king. Seeing Scrooge already waiting for him, Bob only can assume the news will get worse: cutting his commissions further, announcing creative reserving to eliminate his contingency again, and restricting his property coverage availability to pig iron under water within five blocks of the agency.
Much to Bob's shock and awe, Scrooge leaps to his feet, envelops Bob in an energetic bear hug, and beams joyously.
“Bob Cratchit, my fine fellow! Merry Christmas and a Happy New Year!obCrLf
“Er, Mr. Scrooge, umoyou seem in a good mood,obCrLf Bob stammered.
“More like a shocking mood, judging by the look on your face.obCrLf
“Quite a shock-considering our last conversations prior to the holidaysoobCrLf
“Oh, you mean when I told you your growth was unacceptable, your prospecting 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 a humbug. 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 on Christmas Eve.
“As usual, I went by the club on my way home for a few libations and then straight home. After turning off SportsCenter, I was readying for bed when an apparition appeared in my den. Naturally, I thought it was just a burned-in image on my plasma TV, but it spoke to me! Claimed it was the ghost of American States and had been sent to warn me I was risking my company's future if I didn't change our path. I assumed I was drunk. There was more Grey Goose than grave about him. But he howled and shook these incredible chains until I listened. Seems if I wanted to avoid some horrible fate, 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 I said oBring it on!'
“At the stroke of one, up pops this glowing visage who announces she is the Ghost of Insurance Company Past. oLong past?' I asked-quite reasonably, I thought. oNo, your past!' she snapped. Great, an apparition with an attitude. But you know me. Like a soft market, best just to ride it out. So off we go. She showed me our old offices where I apprenticed as an underwriter. And there was old Fezziwig, my first supervisor! Gosh, it was great to see him. It was like I was young again, with him showing me the ropes of property underwriting. I'd forgotten how we actually took time to inspect properties, sometimes right alongside the agents! Gosh, when was the last time you and I checked out some of your prospective 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 it was to get into those buildings and crawl around. To actually see the difference between masonry and masonry veneer. To talk with prospects and see firsthand the attitudes that create moral or morale hazards. I felt energized, with that same burst of enthusiasm and sense of making a difference through real hands-on applications of my studies. Just hanging out with Fezziwig was like a master's degree program in underwriting! And it reminded me of his core belief-that any property risk, given the proper insured attitudes toward hazard and housekeeping, could be profitably underwritten by an experienced, trained professional who knew how to properly adjust coverages and rates to meet the carrier's needs. It felt great to be one of those underwriters, thanks to Fezziwig taking me under his wing.
“Just as I realized those were the happiest days of my life, the spirit left me! I was beginning to wonder if she had been a dream induced by libations when a giant of a man appeared, dressed in royal robes and carrying a torch! He announced that he was the Ghost of Insurance Company Present and off we went.
“Bob, I gotta tell you. All he did was show me what I see every day-automated class underwriting, direct bill escrow, coverage approvals based on reinsurance treaties, the whim of the day from home office, and a nearly total focus on cash flow to create investment returns. I always thought those were fine things and growth at any cost was the best of all worlds. Without growth, where would we gain the cash to invest in more intricate and complex instruments that are created to goose our returns and improve our profits, driving our stock prices through the roof so we can all cash in on our options? Underwriting an individual property risk is well and good, but it's too inefficient if you are going to play with the big boys! That's why we have to keep pushing you agents into either giving us more revenue or we cut you off! It's not about the profitability of your accounts. Heck, some of the smaller agents write the most profitable, loss-free business! But that cash flow monster is a hungry beast, and once we started trying to fatten him up, his appetite seemed to expand like Buzz Lightyear-to infinity and beyond!
“But after being reminded by the Ghost of Insurance Company Past of what I had left behind in haste to grow the beast, all of what we do today seemed so cold and lifeless. So here I was, struggling with why everything I had been so sure was an improvement now seemed almost a travesty, and this ghost disappears!
“Well, Bob, as you might guess, there was one more ghost to appear.
“The third ghost, the Ghost of Insurance Company Yet to Come, was a nightmare. I'll spare you the details, but his point was if Dickens doesn'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 bailout consisting of billions of taxpayer dollars will disappear like a raindrop into a deep well.obCrLf
“Oh, come on, Ebeneezer. No way would the government be stupid enough to do that once it was obvious you were in too deep, and all of 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 he showed me is credible. It literally scared the stock shorts off me.
“Well, Bob, I awoke Christmas morning changed. I swore to the spirits I had learned their lessons and I would change my ways. So here I am. And I promise you. We will have stable markets again, with reasonable underwriting and rates. We will strive to have both soft and hard markets blend into one, not continue this random lurching from one into the other. And Bob, I am going to double your commission! Yes, Bob, and the Tiny Tim Agency will not die for lack of markets but thrive, I swear! Florida will have windstorm and property markets again! Ditto for Texas, Louisiana, Mississippi, Alabama, Georgia, the Carolinas and Long Island!obCrLf
“And you'll quit over-reserving to gut my contingencies?obCrLf
“Don't push it, Bob. I think stable markets, restored underwriting prowess and adequate commissions are doing pretty well for one night, so cut me some slack.obCrLf
“You're right, Ebeneezer. You are a changed company, and I appreciate it.obCrLf
“Well, we can discuss the particulars over a Christmas latte at Starbucks. Merry Christmas, Bob!obCrLf
“Merry Christmas, Ebeneezer!obCrLf
Could this tale become true? Dare to dream-it's the season for miracles! Merry Christmas to all! As the Tiny Tim Agency said, “And God bless our true partners, every one.obCrLf
Chris Amrhein is an insurance educator and speaker with more than 30 years in the industry. He is also chief fun officer of www.insuranceisfun.com and author of “Yes, Virginia, There is Insurance.obCrLf Contact Amrhein at chris@insuranceisfun.com.

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