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Grass Isn't Always Greener on the Other Side

May 13, 2019

Buyer's remorse. It happens with small purchases, like when you thought you picked the best item on the menu and then your spouse's entree arrives. It happens with big purchases too, such as when you're buying appliances or furniture for your home. And it also happens when you're purchasing an insurance policy. With the latter, you know it's a bad sign if you're feeling stuck, early on, in a policy that's not in your company's best interest - especially considering it's such a large expense.

Last quarter, Synergy saw several previous policyholders return to Synergy for their workers' compensation insurance coverage for this very reason - buyer's remorse. The policyholders canceled their Synergy policies because they were able to find a lower premium. However, the old saying comes to mind, "You get what you pay for."

The policyholders returned to Synergy because they were dissatisfied with their claims management, with one returning just three months after they had moved coverage. In another example, the policyholder returned to Synergy with an increased Experience Modification Rate, 30 points higher than when they left. And we all know that Experience Modification Rate can affect an Insured's premium for the following three years.

The grass isn't always greener on the other side. When you focus on price, you make a sacrifice in other unknown areas (which seem to surface when it's too late). It's important not to rationalize the big purchases - do your research and make an informed decision that will be in your company's best interest.

Do you want an insurance company that's on your side or one that offers a better price (which may come back to hurt or deter your company's success for several years later)?

What accounts would you like to transform from mediocre performance into magnificent?