An article in August 6 issue of The Standard about the coming competitive market in private passenger auto insurance featured comments from J. Bruce Cochrane, president of Renaissance Group. The article noted that between 55% and 60% of Bay State agents represent only one auto insurer.

"To compete effectively, Cochrane said, that will need to change, but therein lies a catch-22 - agents cannot attract new companies without the promise of new business, but cannot tempt new customers without a variety of coverage options. "You're sitting there with all your customers at risk," he told The Standard. "Your first course of action is to protect your book."

There are three points to competition, Cochrane observed - coverages, service and price. All 19 insurers that have long competed on service in Massachusetts should be expected to exercise their newfound right to compete on price, he said.

Agents have a "huge" opportunity to reconnect with their clients, but must understand the dynamics of the market have changed and they need to bring the sales skill back to the auto insurance market, Cochrane explained, They need to be able to explain all options, quote every single company for all clients and be ready to go out and drum up new business to replace the natural losses that will occur.

"Out of every crisis comes both chaos and opportunity," said Cochrane."

Posted by Renaissance Group at 11:37 AM | Permalink