By Lori J Meagher, MBA, CIC, CISR
I am not writing this to cause debate or offend anyone. I am merely sharing two very painful experiences my office had in recent weeks. The names were omitted to protect the innocent and the offenders.
I am going to start with— I love insurance. I love the industry and always thought of it as my way of helping others. That is how I am made. I want to make things better for people. When I started in insurance, I realized this was my calling.
I have always said insurance is a people business. Unfortunately, the last few weeks have made me question that statement. Honestly, it breaks my heart to think the industry that I have dedicated my life to no longer cares about the clients, but only their bottom line. I understand business. I understand the need to be profitable, but I just cannot accept it has to be done at the expense of the people.
Here is what happened:
Client A was purchasing a used wheelchair accessible van. She has MS and needs a wheelchair. Her family was finally able to find a van they could afford. When we attempted to add it to their auto policy, it referred to underwriting for review. No problem, these things happen all the time. We attempted to speak to underwriting but could not get past customer service. Customer service told us it would be 48-72 hours before we would hear back. The insured was purchasing the vehicle the next day. We tried to explain to the customer service representative this was time sensitive, could we please speak to an underwriter? We were told: “It does not matter they have been a client of X company for 10 years. It will not be given priority over any other matter the underwriters are dealing with. And, no, you may not speak to an underwriter. You will have your answer in 48-72 hours.” We had to cancel the policy and write it with another carrier that was willing to insure this used handicap van.
Client B was non-renewed due to recs on their home. For a bit of background: in Connecticut we had a rash of homes built in the 1980s that are now suffering from crumbling foundations. The state has a program to help the homeowners get their homes repaired, but it is a process to get on the list and there is no guarantee you will be accepted. These folks have a crumbling foundation. They were not sure they were going to be able to keep their home—never mind worry about the front door needing painting. That was the sort of thing that needed to be done. They just received notice from the state that they are on the list so will be able to keep their home. They jumped right on the recs and got them all done before the non-renewal date. When Y company was informed the work was done, their answer amazed me. “We are not a maintenance policy. The non-renewal stands. Can we speak to our underwriter? No, you may not.” We did finally get through to our underwriter to be told something terrifying. Their words, “I agree with you. We should reinstate this policy. My instructions are clear. If I rescind a non-renewal our system generated, I will be fired.”
Is insurance still about people? Maybe it is time for decision makers to remember— at the other end of every decision there are people just trying to survive.
Lori J Meagher, MBA, CIC, CISR
RVP Region 1