Comments on: The Insurance Annual Review Challange http://www.insuranceagentwebpower.com/2008/12/the-insurance-annual-review-challange/ Web services, insurance agents, and results. Mon, 30 Aug 2010 13:52:05 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Kevin McDonald http://www.insuranceagentwebpower.com/2008/12/the-insurance-annual-review-challange/comment-page-1/#comment-4 Kevin McDonald Tue, 20 Jan 2009 15:04:00 +0000 http://www.insuranceagentwebpower.com/?p=22#comment-4 Irrespective of the state of the economy, there are always big disparities in premiums between property and casualty insurers, even for identical coverage. Wide variation in price for similar products in service is a hallmark of an inefficient market (incomplete information for consumers, a high degree of regulation for providers, etc.). I'm not weighing in on the pros and cons of regulation, I'm just saying that's a reason for big price differences - in any economy.<br/><br/>The other side of the equation - what your blog might refer to as 'full coverage' is often overlooked. Coverage is easier to understand and comapare for personal auto insurance, but even there, decisions are made in the interests of saving money - up front premium - that can result in a much larger expense in the event of a big, uncovered claim. Ascertaining coverage needs and weighing options, especially for property and business insurance, is more complex and time consuming than most consumers are willing to undertake, hence the desire for reviews and the statistics quoted in the original post. Irrespective of the state of the economy, there are always big disparities in premiums between property and casualty insurers, even for identical coverage. Wide variation in price for similar products in service is a hallmark of an inefficient market (incomplete information for consumers, a high degree of regulation for providers, etc.). I’m not weighing in on the pros and cons of regulation, I’m just saying that’s a reason for big price differences – in any economy.

The other side of the equation – what your blog might refer to as ‘full coverage’ is often overlooked. Coverage is easier to understand and comapare for personal auto insurance, but even there, decisions are made in the interests of saving money – up front premium – that can result in a much larger expense in the event of a big, uncovered claim. Ascertaining coverage needs and weighing options, especially for property and business insurance, is more complex and time consuming than most consumers are willing to undertake, hence the desire for reviews and the statistics quoted in the original post.

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