The Facts:

A good metric of an insurance company’s health is their “Combined Loss Ratio”. This figure provides a snapshot of a company’s underwriting profit; i.e., how much they’re paying in losses and expenses compared to the premiums they’re collecting.

Combined Loss Ratio = (Claims Paid + Expenses)/Premiums

A healthy company will have a combined ratio somewhere around 90%. That is, for every $1.00 they collect, they pay around $0.90 in claims and expenses. This gives the company an underwriting profit of 10%, which is healthy but not greedy. A Combined Ratio of, say, 75% would indicate that the company has priced their product too high. They would find it impossible to compete in the crowded marketplace of insurance. It’s hard to turn on the television without seeing geckos, cavemen, Mayhem, or major sports figures like LeBron James and Aaron Rodgers shilling for insurers. Many insurance carriers are reporting Combined Loss Ratios of 110% or more. This means they’re losing money. Ten cents on every dollar. (Of course this ignores the carrier’s investment income, which is also depressed due to record low interest rates. But I’ll save that for another blog post.)

Why?

Climate change is real. The storms we’re seeing are unprecedented. Wind and hail damage is destroying roofs and vehicles alike.  This video which was taken in Knoxville, TN and posted on youtube by username: allstokhonda is a perfect example.

Hurricane Irene tore through the east coast of the United States in late August of 2011.  One insurance carrier that I spoke with reported that they received 55,000 claims the day afterwards.  Just the administrative cost of taking the calls, documenting the claims, sending the claims adjusters on-site, etc. is an enormous expense.  The insurance companies aren’t built to absorb these spikes in claims volume, which means the have to outsource the process.  That, in turn, increases their costs and typically degrades the service to the customer.

What Actions Should We Take?

If you receive a significant rate increase then call your agent.  There are a few courses of action that may be appropriate:

1) Bundle your policies.  Shop your home and auto insurance as a package deal.  Many carriers are offering as much as a 25% discount on both policies if you place them together.  An umbrella and jewelry schedule will add to the discount.

2) Increase your deductible.  Small claims cost as much administratively for the insurance company as large claims.  Most carriers are trying to get their customers to at least a $1000 deductible.  As a general rule a higher deductible makes you a more attractive of a customer for the insurance company.  This will yield better rates.

3) Shop around.  Every insurance company has a defined “risk appetite”; i.e., a customer they’re trying to target.  That target is often subject to change.  In general, longevity with a carrier is a good thing.  However, it may be the case that at one point you fit squarely within your insurance company’s risk appetite and now that is no longer true.  Their risk appetite may have changed.  Or perhaps they’ve stayed exactly the same and you’re the one who changed – you got married, bought a bigger home, a boat, etc.  Now your risk profile is a better fit for a different company.  Talk to your independent agent about what carrier may be the best fit.   

The Delta Demons

Our holiday service project was to send a gift box to each member of US Army 2nd Platoon Delta Company 2-5, the Delta Demons pictured here. They are near and dear to our hearts as they give up time being with their families during this holiday season. We had a ball doing this for them and hope they know how proud we are of them! We appreciate their gift of service to us and this country and hope they appreciate this small token from all of us at Robins Insurance.

According to the study:

• 80% of drivers admitted to sending and reading text messages while stopped at red lights while two-thirds of drivers say they make phone calls.
• 50% of the drivers in the study say they make phone calls “while driving on an open highway” or while driving in “slow traffic.”
• 15% of drivers from the study admitted to sending and reading texts while driving.
• 3% of drivers say they use their smart phones to take pictures and some are even updating their Twitter and Facebook pages.
• 10% of drivers admitted to using other smart phone applications while driving
• 80% of drivers say it is never safe to text, email or use their smart phones while driving.

These alarming results show people are still using their phones for calling and text messaging while operating their vehicles, it is important to remember the importance of driving safe. While technology has made it easier to connect with friends and family, safer driving should remain top priority for all drivers.

To better serve you, we’re available on:

Want to discuss your insurance needs? Call us anytime!
615.665.9200

30 BURTON HILLS BLVD • SUITE 300 • NASHVILLE, TN 37215 p) 615.665.9200 www.robinsins.com Robins Insurance Agency, Inc. is ready to meet all your personal and business insurance needs.

We’ve spruced up our address on the web, and we’d love to have you over for a visit. Consider this your standing invitation to drop by anytime! We’ve certainly made it worth your visit.

Not only did we update the overall look of the site, but we’ve freshened and expanded the content, as well. Whether you’re a longtime client or are just getting to know Robins, you’ll learn something new about us when you stop by. The site is an easy-to-navigate, one-stop resource for coverage options, requests for quotes and details about our company.

If you’re a smartphone user, you can easily view the site on your mobile device to keep up with Robins Insurance even while on the go. Whenever and wherever you need to connect, we’re there!

To better serve you, we’re available on:

We’re also just a phone call away, so dial us anytime! ph: 615.665.9200

Edward Dinker : Account Executive

Edward has roots in Nashville and is a graduate of Father Ryan High School. While completing his studies at the College of Charleston, with B.A. and B.S. degrees in Business Administration

and History, he participated in the Collegiate Entrepreneurs Organization and was a sales representative for Aflac.

In his academic and professional endeavors, Edward has a proven track record of exemplary performance and service. His readiness to serve our clients makes him a great addition to our team – and yours.

CONTACT EDWARD TODAY
TO DISCUSS YOUR COVERAGE NEEDS!

EDWARD DINKER
Account Executive

edinker@robinsins.com

p) 615.665.3257
c) 615.426.7224

Jud Goldman : Account Executive

Jud is a native Nashvillian and graduate of Father Ryan High School. He holds a B.S. degree in Enterprise Management from the University of Tennessee Business School. Jud previously was an intern in 2009/2010 with Loventhal Insurance & Financial Services, Inc., an affiliate of Robins Insurance Agency. Jud joins his father, Charles J. Goldman, President, and will be responsible for all lines of insurance including the Property & Casualty, Group and Individual Life and Health Insurance.

CONTACT JUD TODAY
TO DISCUSS YOUR COVERAGE NEEDS!

JUD GOLDMAN
Account Executive

jgoldman@robinsins.com

p) 615.665.8530
c) 615.714.2876

If there’s one thing this past year has taught all of us, it’s the importance of looking ahead.

Even in industries with seemingly long-standing ways of doing business, there’s little “status quo” left to rely upon. You’ve got to keep watch on what’s coming to stay grounded in the here and now.

That’s why we at Robins Insurance Agency continue to stake our position at the forefront of our industry. Not only is the view into the future much better from the frontline, we’re able to really lead insurance needs – for your business and your family.

We are in tune with the most current insurance issues and solutions for startups, small businesses and families. Through extensive industry involvement and knowledge acquisition, we are able to evaluate your present insurance needs and help you prepare for what the future might hold.

Forward thinking as we are, we’ll never let go of our deeply rooted commitment to traditional customer service.

MAKE SURE YOUR NEST EGG
IS WELL PROTECTED!

Many of you, our good friends and clients, may have experienced damage to your home, car, or business over these last few days. Our sympathy goes to all those that suffered damages or great inconvenience. These potential claims need to be reported to your respective carrier as soon as possible.

Many flood claims will not be covered, which is defined as the rising of surface waters. This requires the purchase of a separate flood insurance policy, and these are generally purchased by those property owners in a designated flood zone by FEMA.

Automobile damage from flooding is generally covered under the comprehensive portion of the auto insurance policy.

Once the claim is reported, you will receive a phone call within 24 to 48 hours. Regardless of coverage, we encourage you to make emergency repairs to prevent further damage and save all receipts for work performed.

We have names of available contractors to extract water and perform emergency repairs. If your claim is covered, these charges will be included in the ultimate settlement.

Please contact us about any potential damage as soon as possible. We are prepared to meet your needs very promptly.

Thank you for your business.