Standing Out From The Crowd

Every now and then, our worlds change to the point that nothing is ever the same again. It may be for the better. It may not be. But one thing is for sure, we all have to be prepared to adapt.
It seems the insurance market is witnessing one of these moments in the wake of California’s new auto rate rules that became effective last August.
 
As a Customer Experience professional, I watched the events unfold and observed curiously as insurance companies reacted. Of course, everyone’s first step was to fight the change, but after this mandatory - and let’s say inefficient - move, things started to get really interesting.
 
It was akin to a remake of an old Rocky movie. Most companies kept fighting only to be knocked to the ground again and again. What’s unfortunate is that nobody in the crowd was cheering for them, and every punch left a new scar on each company’s image.
 
Maybe the companies that continue this fight think they are going up against the government or the status quo. They don’t get it. In reality, they are exchanging punches with their own customers. Customers may know that every company protects its own interests, but that doesn’t mean they accept it, or that they won’t hold a grudge.
 
The right analogy for what’s happening is a road not a boxing match. Insurance companies should ride the changes out, not fight them. So far, only 8 have decided to ride the first wave: State Farm, Auto Club of Southern California, AAA of Northern California, Infinity Insurance, Wawanesa, Progressive, GEICO, and USAA. Together they are already providing $20 Million in auto rate reductions.
 
They are the first ones, but surely not the last. It is still early in the game. There is opportunity to turn what may seem like surrender into a competitive advantage. My advice is embrace the change. Take pride in it. Show your customers that you will jump at the chance to make their lives easier. Give them a reason to stay with you.
 
Great rewards come when change is viewed as an opportunity.
To the companies who aren’t on the bandwagon, I must say that the moment of truth has come and gone.

What will you do now?

**See original article at Vox website or download the PDF Version.