Streamline the deal cycle for insurance industry

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so the insurance industry is essentially on fire there's essentially a crisis all over the place I honestly don't think you can look around if you're in our industry and not see some sort of Crisis that's happening State Farm just paused all of California and technically they actually paused them two months ago a lot of people just got wind of it and it's a huge deal what we didn't realize is that farmers also put a huge restriction on California and so did chub and so did like a whole bunch of companies now I think Travelers as filing rate increases in that state and there's all of these companies that are essentially going crazy in different states it's not just California in our state I just noticed that there's a company essentially pausing all over the business or at least they filed to pause all of their business going forward that's almost impossible for them not to get guaranteed that that's going to happen because they just have to show that they're losing money and I think this company which is a major brand I'm not going to announce them but they're 1.7 plus loss ratio percent like the 170 percent they've taken a dollar they pay out a dollar seventy something it's not profit affordable for them to succeed or even go forward that way so what they'll do is they'll pause for a year wait the year out reevaluate if the market has gotten easier if they notice that they've skipped through all of the wildfires and claims in any state that has tornadoes and hurricanes and all of those pieces they can kind of skip or reset and come back into the market when that ends so now they start scooping up the business from the back end and then they start getting good business going forward it's essentially a strategy so what is going to happen with insurance in general whether it's Home Auto Life Health any of those types of policies is you're noticing that because there is a huge fraud going on and because there is a huge thing on fraud right now there's an article that I just recently read that mentioned that the average younger generation so if you're under 40 they typically are okay and don't see fraud on an insurance policy as illegal and that tells you that a huge majority of our our industry is willing to file claims is willing to replace their roof when they know there's no damage when they think there's little damage and they're willing to essentially lie on those applications to get them to file those claims some agents won't actually even step in so they'll just let the fraud claim go through and now what happens if you don't give the right advice to a customer now they're kind of Sol especially if they get caught now they've got fraud on their history they're almost essentially blacklisted from most insurance companies or if they're not and they're required to offer it they're going to offer them five times the price they would normally would pay so it's really huge that we educate people and help them understand that it's not just yeah can you get away with it sometimes sure maybe even 50 of the time but if you don't there is a high risk that you're taking and it is illegal to do so now illegal yes but does the law actually get involved not usually that's where a lot of people don't see it as wrong to file those claims now that same article said for older Generations so 40 and up I think it was only like 20 or 30 percent said it was okay but once you kind of get into that 50s and 60s it was like 90 some odd percent said no it's illegal it's fraud it's not possible it's because they were a little more educated or had the experience and have seen those scenarios where they have been denied or caught for those situations so what's essentially happening in the industry is it's not just wildfires and claims and all of those things what has happened is a lot of these big companies will use State Farm as an example because they are the largest in the U.S as far as personal lines insurance insurance and one of the things that they've done is they've held strong I think too long and they didn't want to have those rate increases what happened was essentially four years ago before covet happened they had these claims that started to happen but they kept strong they're like we're not going to change it we'll let everyone else raise their rates we'll keep strong in getting all their customers Cove it happened everyone noticed that no one's driving the prices should have went down they didn't lower them because they're like oh we're good we evened out our losses you don't realize that they had the losses before it happened some companies made out well because they did raise the rates and they made extra money governments cracked down on them and said nope give the money back the bigger companies had to give more money back and so they ended up losing a little bit extra even though they netted a profit right that was a positive for the insurance industry as far as money making the negative part that kicked in was the fact that these insurance companies had to give money back and those that held strong lost money here they did decent they made a little bit back but not enough and then they tried to hold strong past that because they thought were out of the clear the stay-at-home stuff is done everyone's driving let's just keep where we're at then all of these major these major economic things changed the Texas had floods the Hurricanes got worse in Florida the wildfires in California got worse and there's a 20 percent increase on top of that the economy went out crazy and the homes went up 20 the cars are hard to find parts it's taking four times as long to get a car repaired as it was four years ago so all of these pieces essentially added up and they thought right to hold strong because it's worked in the past but not understanding of what was to happen ahead they lost more than they expected which caused them to have to essentially just stop running business in certain States the other piece that a lot of people don't understand is there's another thing called reinsurance and reinsurance is a major piece of the industry let's say I was to insure your cell phone and I'll insure a thousand dollars worth of your cell phone if you lose it break it crack it whatever of the cases I'll pay for a new one give me ten dollars a month great I'm happy what I'm going to do is I'm going to go over to this person over here and say if I lose 500 on the cell phone I want you to reinsure me for 500 so I only lose half of it so I could take all this money in I'm not taking on as much risk because I'm paying them a small portion and they're kind of essentially going into business with me on the side what happened was a lot of these reinsurance companies lost because they're losing all of these pieces some disappeared you go to Florida if you look at home insurance 7 8 9 12 of them have completely gone and solve it so they're no longer doing business other states like California they went up 20 and now those states are causing problems because the state of California doesn't allow you to calculate reinsurance into the cost of insurance so now these companies are taking on 20 percent more rate they can't raise the rate because of the laws in certain States and they're essentially just sitting there watching their money burn it's go going out to people but it's going out to the people that aren't supposed to get it not the consumer it's going out to the home builders and the repair shops and the other places and companies and businesses not because they don't deserve it but because the way the economy has delayed everything and the way the disasters have caused all these issues that were not seen as good of an impact as we hoped we would if you're in the PNC industry if you're selling home Auto umbrella that type of stuff I know it didn't go over super heavy into like life and health and medical honestly they're having those similar problems to where a lot of those things you gotta Imagine The People's age they're coming up due for those Health checkups and all of those pieces and people are trying to cut back so the easiest way is to take loans out to take money out to borrow to stop and all those pieces are affecting that market as well well for home and auto and those types of clients or those types of businesses if you're in the business you're noticing that this company's raising rates that company's raising rates this companies stopping business altogether unfortunately for those of you that are with one company where you're just in all state you're just a State Farm you're just a American Family you're just one of those major lines you're going to struggle the worst if the state does what they've done to some of these states and I believe our state in Michigan just got one of those companies I'm not going to name them because I haven't confirmed it but I just understand they have a seven or eight day pause so you can't buy into policy it's a pre-bind pause so if you submit it you have to wait eight days before the policy goes in force well for those of us that know clients that buy cars don't like to wait eight days they're buying it in two days in three days and they're calling you now and now you can't insure them they have to go elsewhere can you get them back I hope so but we don't know you may lose that customer that you normally would have gotten so that Revenue doesn't come into your business for those of us that are independent we are still struggling a little bit because you have those rate increases we're the ones seeing it because all of the little guys that have tried to go wide are starting to feel the pain more so than the big guys and those companies even though they're usually strong and okay to stand they're a lot quicker to make the move and to change the prices up to match what they can get as a profit so if they need to make 18 profit they're going to put the price no matter what you do above that there's always going to be someone paying more and that's the case where they get that customer is they're only going to focus on the type of business that they want you're going to notice companies like Nationwide they're putting extra restriction if you're not doing certain types of business you're paying half of that policy seventy percent of that policy down you don't seem Progressive their rates are going up in almost every other state I see constantly so there's a lot of changes in a lot of pieces happening the question is how do you get through this market and get to that next step for consumers honestly it's shopping I don't have a link for it because this is not the think Insurance Channel if you found this channel by accident go to think Insurance I'll teach you all about car insurance for business people this is more of my business Channel honestly the first pivot that most people are going to make there's two things that may happen well three so the first scenario is you're going to tighten up and you're not going to Market and advertise and you're going to stop buying leads if you're buying leads that makes it better for me because we're buying leads other people are going to do the opposite and buy more leads which is probably what we'll do we figure or feel that if we can afford to get through this time the harder we go the harder we we push and get the right type of business our agencies built off of that type of client that's our struggles because those tightening up are going to force the ones that write all of the monoline auto so the single renter the not that they're bad people they're just not the type of business that most companies want you're going to have to write the business that we're writing which is Home Auto umbrella multiple cars things like that and so those pieces you're going to have to play in our world you might be able to compete and you may even be better than us but it's going to cause all of us to have to fight for the business that much more the third answer and what I think a lot of people might do is to Pivot away from home and auto and pivot more towards commercial it's a harder game it's a lot more difficult there's a lot more moving Parts but they're not the ones feeling the pressure as much their loss ratio there is way lower than normal so companies even though they pause home and all and all that stuff will see more of an uptick on the businesses it's a whole new world if you're going there you've got to pick the niche figure out what you're going to be good at go down that road whether it's restaurants or factory workers or factories or construction workers and whatnot each company has a different appetite and you're gonna have to figure that out just like you were brand new if you're in Michigan and you're selling your agency hey hit your boy up definitely look at it we're always looking to get a loan and move up the chain but let me know what your guys's thoughts are is this something that you guys are shifting or making a move is there ideas that you have into play are you looking to do more strategic pieces one thing I'm going to start doing on this channel is to start showing you some automation tools that we're using that might benefit you so I think I'm going to dive a little bit deeper into that and show you kind of the stuff that we do or that I do or that I would do maybe we'll use chat gbt to help us design one that'll be kind of fun and go that route I'd love to know your thoughts are I'm Mark W Flockhart I'll see you soon