No More Off-the-Shelf: Fashioning Insurance from the Customer’s Perspective

Henry Ford once famously said, as his revolutionary Model T automobile entered production for the first time, “Customers can have our car in any color they want – as long as it’s black.”  With a stranglehold on the market, Mr. Ford could dictate his offering however he saw fit.  Things, to say the least, have changed since then.

The market for insurance in all its forms and for all its purposes continues to expand.  The number of providers and the products they offer have done the same.  This increased selection and heightened environment of competition translates into better service – as long as insurers remember one thing.  In order to win customers in the modern marketplace, insurers must understand what customers want, rather than focus simply on what their own products can do.

Off-the-shelf solutions cannot be the answer to every – perhaps even most – customer needs.

While customer needs may seem simple and straightforward, providing advice is not.  In one example, this is particularly true given the complex and changing economic financial conditions facing younger people.  Millennials carry 300% more student debt than their parents, and earn 2.9% in average annual returns on 401(k) plans, compared with 6.3% returns for Baby Boomers.  Many younger workers will need to remain in the workforce longer, as well.  Federal data suggest that Millennials will need to work until age 75. *

Technological advances have made financial and insurance data more accessible to consumers, but achieving a true understanding of how to apply that information still suggests working with an experienced advisor.

These trends contribute to the approach taken at The Reschini Group, where we maintain relationship-driven interactions with clients.  Each situation has its own traits, needs, and demands, so we have staked our reputation on serving those distinct factors to protect our clients as effectively and economically as possible.

We have plenty of shelves, but your customized solution will not be taken from any one of them.  Contact The Reschini Group to learn more about putting together, or updating a current, insurance package to meet your unique situation.


Copyright 2018 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

* https://www.pwc.com/us/en/insurance/assets/pwc-insurance-top-issues-2018-financial-wellness.pdf

A Higher Purpose – Insurance as an Economic Engine

Most people view insurance as just that – a way to “make sure” they have protection against accident and injury.  While that is certainly an accurate and true description, insurance actually serves a larger purpose in supporting and driving the larger economy.

A study published by the Insurance Information Institute in June 2018 offers 10 major reasons why insurance is such an economic asset.  Here is that rundown:

  1. Financial first responders – Often arriving the same time as emergency officials, insurers make every effort to restore claimants and beneficiaries quickly and reliably. This lessens the costs of unexpected losses and benefits even among those not directly affected by a loss.
  2. Risk mitigators – Insurers sponsor and promote knowledge and activities that save lives and protect and preserve property.
  3. Capital protectors – Insurers are not as susceptible to short-term liquidity crunches as are other financial services firms. Reinsurers further stabilize insurer exposure to loss by spreading or diversifying transferred risk.
  4. Partners in social policy – By providing significant social benefits, such as compensation for injuries at work and rebuilding property after catastrophes, insurance contributes to the rebuilding of people’s livelihoods, as well as to the economy as a whole.
  5. Sustainers of the supply chain – Insurance protects economic interdependence among businesses by insuring vital supply chains.
  6. Capital infusers – Insurance reduces the need for “rainy day funds.” Consumers and businesses can buy insurance for a relatively small premium, thereby putting more working capital into the economy, producing and consuming more goods and services to create a higher standard of living.
  7. Community builders – Insurers are among the largest investors in the world, with more than $8 trillion in assets under management. Since these investments need to be available to pay long-term claims, investments often include private and municipal bonds that help communities grow and thrive.
  8. Infrastructure enablers – Insurance enables economy-boosting construction projects and events to take place.
  9. Innovation catalysts – Insurance allows innovators to take the risk that’s needed to spur modernization. For more than 300 years—including every industrial revolution—insurance has been a critical driving force, and thus is central to a developing economy.
  10. Credit facilitators – With insurance, lenders are more likely to provide funding for large purchases, consumer durables and to businesses, and charge lower interest rates for these loans.

We at the Reschini Group understand the vital role we play in spurring economic activity and growth in our region and among our clients.  It’s a role we take very seriously, and with great appreciation for the relationships we are privileged to maintain.


Copyright 2018 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

 

Source: https://www.iii.org/sites/default/files/docs/pdf/insurance-driver-econ-growth-053018.pdf

Reprise: C’mon Back – Establishing a Quality Return-to-Work Program

By The Reschini Group

Create a robust Return-to-Work Program to help employees get back into the swing of activity at the worksite.

College Homecomings.  Family Reunions.  These events remain popular because they bring people back.  When you share an experience together, you want to be around those people again.  It’s always good to come on back.

While perhaps not as sentimental as Homecomings and reunions, the same principle nonetheless applies to the workplace.  When an employee gets hurt on the job and loses time recuperating, it’s important to bring that person back into the organization as soon as practically possible.  This holds true for many reasons.  A recent poll cited by Zywave Inc. found that:

  • 70% of employees who return quickly to the workplace avoid letting their condition consume their thinking.
  • 76% of quick returners refuse to feel victimized by their injury.
  • 90% of quick returners report having a good relationship with their supervisor.
  • The longer an employee is away from work, the less likely he or she will return to gainful employment.
  • Employees who are off work for more than 16 consecutive weeks rarely return to work at all.

A robust Return-to-Work Program provides organizations with a defined set of rules and practices designed to help employees get back into the swing of activity at the worksite.  A solidly defined, easily implemented Return-to-Work Program identifies ways of helping employees who have been hurt to come back in either a temporary role, or to their regular job, but with modifications as appropriate.

Zywave lists four main components in the development of a Return-to-Work Program:

  1. Identify a coordinator to oversee all aspects of the program.
  2. Develop a formal policy, approved by management and agreed to in writing by employees.
  3. Designate medical providers who understand your business and its physical demands on employees.*
  4. Be consistent in the administration and expectations of the program across all locations, and among all supervisors and employees.

A Return-to-Work Program helps to ensure that meaningful work activity is provided as quickly as possible to employees who may be temporarily unable to perform all or portions of their regular work duties.  Studies show that a well-constructed Return-to-Work Program reduces lost-time days, allows workers to recover more quickly, creates a more positive work environment, and can even help minimize the financial ramifications of lost-time events, such as increases in the Experience Modifier score, which can raise insurance premiums by as much as 25 percent in one year due to lost-time accidents.

Let the team at The Reschini Group help guide you regarding establishment of a Return-to-Work Program and its effect on insurance coverage options.  Coming back to work means coming back to a positive feeling of productivity, which ultimately helps everyone.

* Injured workers are required to be seen by a provider that is on the “Panel of Physicians” for the first 90 days after their initial visit.  Insured’s work with their carrier to provide a panel at the beginning of the policy period based on the carriers pricing structure with that provider, the doctors willingness to work with companies on things such as RTW, and other aspects that they feel important, (ability to see patients on short notice, location, etc).  After 90 days, the injured employee may see whomever they would like.


Copyright 2018 The Reschini Group

The Reschini Group provides these updates for information only.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.