PrepTalks: Sean Kevelighan “Understanding the Value of Insurance” Q&A

[PrepTalks Theme Playing] One of the number one ways to
expedite the process is inventory and most of the insurance companies have,
in fact we just got rid of our own application because we realized all of
our member companies already have it. We had an app called “Know Your Stuff” and it was just something that electronically allowed you to know what
stuff you have, so in case you need to make that claim it comes very quickly.
Unfortunately, not enough people do that. You know we don’t as humans, not just
Americans, we don’t want something bad to happen and we don’t believe it’s gonna
happen to us, so we don’t take that time to prepare. But if you do you’re gonna be
in a lot quicker, faster place in terms of claims management. You’re looking at it, right? Well, I mean it’s a shameless plug for the Triple I, but this is what the industry at least is doing. We’re trying to have organizations like ourselves, that are getting out and and talking
about this. Educating people about what it means, preparing them. You know this
this is a very important issue and and it is, insurance again, because
humans don’t want something bad to happen, they don’t believe something bad
will happen, they don’t want to think about it. And so even in some cases right
we actually have to mandate it so that the behavior can change. We saw there that workers comp insurance is now mandated in all 50 states, auto
insurance is very similar. That’s what we have. And we’re looking at this and I
know we want to work with FEMA actually to really dig into this behavioral issue,
because I think that’s really what drives it. And that’s what’s gonna, we
need to know what drives the behavior so that literacy can be more action-oriented. So I think you know again we have
organizations to come, we still have a problem, and ways to go but we’re working at it. And I think, I’m really excited about some of the messaging that is
coming out of FEMA right now that’s talking about insurance and how that can
bridge the gap, how that promotes resilience, because it’s true.
You will mitigate your risks, you will be more resilient, if you have that
insurance. You just got to get it though. Yeah, it’s a great question actually and all
the companies that you mentioned are supporting members of us. They’re also supporting members of, you heard on the video, IBHS the Institute
for Building and Home Safety, right? This is an organization designed, they
actually have a facility that can recreate hurricane-strength winds. And you saw in that video they put houses in there to actually
show what’s going to happen in a hurricane if you don’t have your roof
tied down, or if you don’t have the right parts. The Insurance Institute for Highway and Safety that organization has
fundamentally changed what our roads look like today, verses 50 or 60 years
ago. This is the organization that crashes the cars
everybody knows that, right? You see those crashed cars and things like that. That
is an insurance based organization. Those are all the members that you talked
about. Those are companies that are investing in those organizations to do
it. Ours is meant to promote it. But what you also talked about which I think is
really interesting, and neat, and I think the future of insurance, is resilience
and risk mitigation. You know people right now are looking for the
best deal on insurance, right? And that’s a good way to shop. Why not get
something that stretches your dollar in the best way. But also insurers are more
and more dedicated to helping you mitigate that risk. Helping make sure,
again, you don’t want the claim to happen, right that means something bad happened that means you’re going to have to rebuild and restart. Even though the
claim is there, the money will be there for you when you have insurance, it’s
still a lot to go through. So more and more insurers and the customers want to
figure out how do I mitigate this risk? How do I become more resilient in my life in my business in other ways? Yeah, well let me just break down the price is so high, because I do think oftentimes everybody thinks it’s the
insurers that want the prices to go up. And let’s let’s just go to a
different issue on automobile insurance, because that’s one part of the
industry that’s had to increase rates, right? And it’s not a part of a natural
disaster but it is a man-made one. But you break down what’s going on in the
roads, again I mentioned we’ve got more people driving than ever before in
history, we’ve got distraction. How many people have rented a car and tried to navigate their navigation system on the
new rental car? I have to sit there for 10 minutes and do it. And this, there’s actually study out from the Triple A that shows that the
manufacturers aren’t really testing that technology like they probably should be
and making sure that it’s safe. So you’ve got a distraction in your hand,
oftentimes right, with the phone that’s another area and even in the car itself.
The cost of a bumper in the last three years to fix and the labor behind it has
doubled You know you not only have more sensors
to put in there, you gotta have somebody that knows how to calibrate all of this,
right? You’ve got legalized drugs, you’ve got an opioid crisis, so all of those as
an actuary as an underwriter you have to take those into account, because it’s
getting more expensive when you get into an accident. Not you personally, but whoever we got a lot of accidents happening. So that’s
what’s behind rate increases and similarly Americans, people love to live near water and as we well know the flooding frequency and
severity is increasing, so we have more risk you’re living in riskier areas. And
you made a very important point you know some people can’t afford, oftentimes the
flooding you gotta elevate or you got to move, and that is not feasible for some
people. But I would argue not all people, right? And so we do have to figure that
out how do we make sure that for those that it’s not feasible for, how do we
make sure that they’re getting the support that they need? I can tell you
it’s not repaying an insurance claim twenty times over and getting them back into
the same house. Well I would argue that the write your own is a fraction of the industry, right and the profitability issue is still a question, right? Some of the largest insurers, you know household names
insurers, have had to withdraw from the market because there is no profitability
associated with it. So again when you have a disaster of this impact, so I can’t speak specifically for individual marketings, but most of those
that you see, that you hear about, that you see on network television are not
those companies that we’re talking about and probably don’t have the marketing
budgets at hand. And that means that we need we need to figure out how to bridge that gap too, right? How do we bridge that gap for those that can
market that those that want to get engaged in this issue, that those that
want to provide insurance in this area, can get more engaged. [Music Playing]

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