What is price? What does it cost? How much is it? What is it worth? What will you pay for it? Are all factors of a consideration for services rendered and items purchased and the perceived value received for the money paid. The insurance purchase is an interesting one because it’s an intangible product that you can’t touch, see or feel...it’s like we are selling air! So, the question is what’s it worth?
What it’s worth is the cost of a claim. A $400,000 fire, a $25,000 water damage, a $15,000 auto accident or a payment of life insurance proceeds for $1m!
So, what is price? Over the years I have come to learn that price is an investment in something that you purchase weather short or long term, a consumable or a service. Ultimately, over time the investment gets better and better as you refine your investments or it gets worse. If, it gets worse a lesson is learned and you become wiser.
Then there is the consideration for the person on the other side of the transaction. Is that person, company or manufacturer worthy of a small profit, commission or fee? We would like to believe that we are all here to help each other and keep the money moving so that all can benefit and contribute to a productive lifestyle for all and continue to fuel the wheels of commerce for generations to come.
I have attached a report memorandum from the President of Dominion of Canada, one of Canada’s premier insurance company and one that IBMG is proud to represent in their response to the Thunder Bay Flood just this past June 2012. That is the value proposition of price in our industry as compared to other carriers that have to bring adjusters from the USA to manage their claims because they do not have the internal support system to respond in times of calamity. I would rather invest the extra to have our own people handle our own claims any day of the week. That is good value!
IBMG Canada is extremely proud of our counsel and insurance offerings to our clients. The magnificent insurance companies we represent and I will admit that it’s not perfect but the undercurrent is to restore, protect and make whole time and time again. And for the most part we do just that but the ultimate judge is you the consumer. May I encourage you to reconsider a shift in the focus on price and its relationship to the value received in the transaction. And truly, when was the last time you purchased the cheapest thing out there!
Normand G. Haas, CIP
President & CEO
IBMG Canada Inc.
Attached: Report Memorandum