In the good old days, people were trapped in their jobs. Lyrics of the classic song, “Sixteen Tons” says it all: “debt for another day older and deeper … I owe my soul to the company store.” The Company has paid, but the only place to buy food and other necessities of life is the company store. With a set of unaffordably high prices, one must go into debt to put food on their . In accounting terms, do not ever pay their debt. This is a strange reflection on those times – that employers do not feel their work would be willing to remain loyal. Today, people are more free to sell their labor power and, if work is not good for some reason, they can move to another place to try. So far, employers have to build relationships with their employees. Loyalty and trust must be encouraged on both sides. This is the same as sales of goods and services. There are a large number of potential customers “out there”. How do you change the “potential” to be”Actually,” and then retain loyal customers? Well, Toyota seems to have an answer for that question and then, slowly forgetting the need to maintain a good opinion of their customers, the loss of their brand image to the security and reliability. What price loyalty of customers from Toyota?
Moving to the insurance industry, we find the same thing “for profit” attitude that Toyota had just driven into the wall. Insurers must retain their customers, ensuring they always have a good experience, especially when making a claim. Instead, insurers have an outstanding reputation for trying to weasel out of paying full value of any claims made. Apparently the words, print the “small”, was created just to let them escape. Why, then, have a free market is not operating to drive them out of business? Ah, the magic of capitalism does not apply to the insurance industry. We are stuck in so many different ways. First, only three U.S. states make it mandatory for us to have auto insurance. Which forced us to find the product. Then we met the insurance exemption ‘from the antitrust laws. Unfortunately, in the year 1944, the federal government thought it would be better if the insurance does not have to compete with each other and the government has no political will to repeal the law. So we needed if you drive insurance, but must pay whatever premium the insurance company feel like asking. Life is not fair.
In a perfect world, insurance will automatically pay a loyalty bonus if you have one more year without any claims. This will encourage you to stay and not move to a competitor. But when you get your renewal notice, it comes with a toll increase. You see a car insurance quote on this site. Hey, there is a welcome bonus for good drivers. This encouraged the company to pay loyalty bonuses (usually small). The problem is that the rapid increase in the level of welcome as the years passed. After the new company hlike you, he wants his money back. Offering car insurance premiums cover only the beginning. There is no guarantee of improvement. Now all it takes to make real the second bonus for each person to move every year. This will make a mess like a real loyalty bonus will suddenly appear and offer incentives to stay. Except most people do not move. This is not loyalty. This inertia and we all lose as a result.