The key to success for any tool is acceptance by the industry it targets. When I published Hide Here Comes the Insurance Guy, I knew it had to be accepted by the insurance industry if it was going to be taken seriously. The overwhelmingly positive response has both validated the book and humbled me as an author.
Below is a review from David Dankwa, associate editor of BestWeek, which is a publication of AM Best, the financial rating company. The article appears in the November 13, 2006 edition, along with a podcast interview available at bestdayaudio.com.
In New Book, Risk Manager Explains 'Commercial Insurance' in Plain Language
OLDWICK, N.J. November 13 (BestWire) — "If I had grown up in Wisconsin, I would know cheese; Georgia, peaches; Florida, AARP," writes risk manager and author Rick Vassar.
As fate would have it, Vassar was raised in a suburb of Hartford, Conn., the insurance capital of the world, where "folks gather at the local diner in the center of town and discuss such compelling subjects as the necessity of waiver of subrogation and additional insured status or the effects the new insurance commissioner would have on the local economy.
"This is where "the insurance curse began in my family," he writes.In his book, "Hide Here Comes the Insurance Guy," described as a practical guide to understanding business insurance and risk management, Vassar shares the wealth of information he's gathered over several decades in what he calls "plain speaking" insurance language.
There aren't any books available that address the needs of the business insurance consumer, and second, many business professionals refuse to enlighten themselves on the nuances of the insurance trade, he says. As such, "the insurance guy" Vassar describes in his book is a lonely person, something of a corporate outcast. He is the type of co-worker people steer away from in the hallways, afraid that he'd work insurance into a conversation.
Using humor, Vassar, also founder and president of Virginia-based Vassar Group, provides insight into the commercial insurance industry from a risk manager's perspective, offering practical advice on the insurance purchasing process. As he describes how terrorism insurance works, how to value one's property when considering property coverage, and workers' compensation strategies, he also picks on attorneys in a section called "The Skinny on Attorneys" and on adjusters in "Anatomy of an Insurance Adjuster."
Vassar discusses in depth the selection of an insurance broker and argues that bigger isn't always better. The difference between a big, national broker and a local or regional broker is like Advil and Ibuprofen, he writes. "You're only paying extra for the name."Vassar says if a company is in tune with what's going on in the marketplace, it can get the same pricing from a small local broker that would from a midsize, regional broker or Marsh & McLennan.
Also, from a service standpoint, Vassar says he prefers a midsize broker to handle his company's midsize account. "Currently, we have a good bit of premium but it wouldn't be a big number for a national broker, like Marsh. For a midsize broker, it's a significant portion of their overall book of business. So, we're more of a big fish in a small pond, whereas with a bigger national firm, we wouldn't get the same level of service," he says.
He frowns on the practice of corporate insureds assigning brokers to shop specific markets, often at the urging of the incumbent broker who insists that "the underwriter only wants to work with one broker per account." Vassar writes that assigning markets defeats the purpose of a free-market system.
He writes also about the role of lawyers in claims processing. "If you're an organization, especially in a self-insured or self-funding situation and you're going to make a decision that's going to have a financial impact on your company, then it needs to be the company that is making the decision as to the financial viability of either settling the case or taking it to trial. Many companies just hand it off to lawyers as soon as they get a lawsuit."
Vassar cites the McDonald's hot coffee case, "where there was an opportunity to settle the case as a medical claim, and they ignored it. Well, the issues in that case were that there was a legitimate injury, a legitimate burn, and eventually they did work to improve the cups and they lowered the temperature of the coffee that they were serving. They also later settled the claim for a much higher amount."
While the book targets buyers of insurance, Vassar says the insurance community also can learn a lot from it. "I believe the book will give valuable insight to the insurance community as to how risk managers and businesses process their information concerning risk and insurance. If a broker or insurer has a better understanding of the needs and concerns of the insured, they will be better able to market products that will meet these needs."
And what do businesses need? Vassar says it is: "The best price and the comfort of knowing that what they are buying will cover an event that creates a financial uncertainty which could prevent them from opening their doors tomorrow, or could close their doors forever."
(Listen to an audio conversation with author Rick Vassar at bestdayaudio.com)(By David Dankwa, associate editor, BestWeek: David.Dankwa@ambest.com) BN-NJ-11-13-2006 1032
Tell Me Your "Insurance Guy" Story
You know what I'm talking about-- dealing with a car accident, your neighbor's tree falls on your house or perhaps you added a teenager to your auto policy.
Tell me your insurance nightmare story. And, as impossible as it may sound, please edit out the profanity. I get it...
When you mention the term "insurance guy" or "insurance gal", many different images come to mind.
You may think of these well tailored, professional types who stroll through those beautiful downtown insurance company offices, off to wherever those people go to do whatever it is they do.
Or perhaps you envision the slightly harried insurance adjuster or appraiser who comes out to look at your car when it gets smashed up.
You know the one I’m talking about-he comes out with a camera around his neck, a clipboard in his hand and at least one pen in his shirt pocket.
It doesn’t matter how much damage is on the vehicle; he always looks at you and says "Where was it hit?" He feels around, takes a couple of pictures. For some reason, he always rubs a mark of the roof with his thumb.
He then gives you an estimate, and disappears, calling out "any questions, call your adjuster". As you leave, you hear faintly in the background: "Where was it hit?"
Maybe you think of your insurance agent, whom you call when you add another car to your auto policy, and she says she needs the check today, so if you could meet her at her son’s cello recital at the elementary school at 3:15.
If you work in the insurance industry, it doesn’t matter what you tell folks. All of them think one thing-he works in insurance; he does insurance; he must SELL insurance.
I am a member of a lesser known community of professionals that choose to interact with the insurance community on a full time basis. I’m that guy in your organization who always seems a little disheveled, slightly distracted and just a tad odd.
I am a risk manager.
"Hey," you might ask "What does that guy do?"
I am a risk manager. I work for a company, trying to make sure that all the risks and loss exposures a company has can be afforded, and for those exposures that cannot be afforded without a negative financial impact on the organization, I purchase insurance.
I lead a kind of lonely professional life. When I walk the halls, people know that if they talk to me, I may try to work insurance into the conversation. So they duck around a corner or dive under a desk. Some will even get on the phone to other departments:
"Joe? Hi. Hide! Here comes the insurance guy!"
Thus, Hide! Here Comes the Insurance Guy was conceived. In 1986, I was in an operations position at a regional car rental company. My boss got mad at me and decided to punish me by putting me in charge of claims.
Nope. It was because I couldn't understand a single word they were saying!!
For every insurance professional who takes a position as a risk manager, there are nine or ten of us who fall into the job because a need develops as the organizations grow. That need may be filled by someone who has interacted with insurance companies, or like me, due to a short term anger episode.
All of the information on business insurance comes from the insurance industry. In fact, most companies rely on their insurance broker for insurance expertise.
But wait, aren’t they the ones who are selling you the insurance?
I am an anomaly in the insurance industry. I currently hold four insurance designations, including the Chartered Property Casualty Underwriting (CPCU) designation, which is considered the highest and most prestigious designation conveyed in the property/casualty insurance industry. Yet, less than 2% of CPCUs are risk managers and less than 1% work outside the insurance industry.
I am a risk manager, and although I am considered an insurance professional by the insurance industry, I have never worked in the insurance industry.
Hide! Here Comes the Insurance Guy is an approachable text on how to manage your insurance program to protect the assets of your company in a cost-effective manner. The book de-mystifies the process, and educates as well as entertains.
If you are a risk manager, you will identify. If you are an executive, a business owner or just someone totally baffled by insurance (and you're not alone), it’s a must read.
Rick Vassar CPCU, ARM, AIS, ARM-P is the principal in The Vassar Group, LLC, in Sterling, VA, specializing in risk management and insurance consulting.
Tell me your insurance nightmare story. And, as impossible as it may sound, please edit out the profanity. I get it...
Yes, It's True - I Am An Insurance Guy on Purpose
Why I Wrote a Humorous Book On Insurance
When you mention the term "insurance guy" or "insurance gal", many different images come to mind.
You may think of these well tailored, professional types who stroll through those beautiful downtown insurance company offices, off to wherever those people go to do whatever it is they do.
Or perhaps you envision the slightly harried insurance adjuster or appraiser who comes out to look at your car when it gets smashed up.
You know the one I’m talking about-he comes out with a camera around his neck, a clipboard in his hand and at least one pen in his shirt pocket.
It doesn’t matter how much damage is on the vehicle; he always looks at you and says "Where was it hit?" He feels around, takes a couple of pictures. For some reason, he always rubs a mark of the roof with his thumb.
He then gives you an estimate, and disappears, calling out "any questions, call your adjuster". As you leave, you hear faintly in the background: "Where was it hit?"
Maybe you think of your insurance agent, whom you call when you add another car to your auto policy, and she says she needs the check today, so if you could meet her at her son’s cello recital at the elementary school at 3:15.
You pull up next to her Escalade and hand her the check. You decline an invitation to see the show, resisting the urge to tell her you have other things to do, like making a living.
If you work in the insurance industry, it doesn’t matter what you tell folks. All of them think one thing-he works in insurance; he does insurance; he must SELL insurance.
I am a member of a lesser known community of professionals that choose to interact with the insurance community on a full time basis. I’m that guy in your organization who always seems a little disheveled, slightly distracted and just a tad odd.
I am a risk manager.
"Hey," you might ask "What does that guy do?"
"He’s the risk manager," is the reply. "He does the insurance. Whatever you do, don’t talk to him. Nobody ever talks to him. If you do, he’s going to bore you with all that insurance nonsense, and since people rarely ever talk to him, he won’t let you get away. Some folks say he’s brilliant, but I’m not really sure. No one really knows what he’s talking about, so they leave him alone. Actually, in a big company like this, that alone makes him a genius. He hangs out with the IT guy. Go figure."
I am a risk manager. I work for a company, trying to make sure that all the risks and loss exposures a company has can be afforded, and for those exposures that cannot be afforded without a negative financial impact on the organization, I purchase insurance.
I lead a kind of lonely professional life. When I walk the halls, people know that if they talk to me, I may try to work insurance into the conversation. So they duck around a corner or dive under a desk. Some will even get on the phone to other departments:
"Joe? Hi. Hide! Here comes the insurance guy!"
Thus, Hide! Here Comes the Insurance Guy was conceived. In 1986, I was in an operations position at a regional car rental company. My boss got mad at me and decided to punish me by putting me in charge of claims.
As time went on, I became the full time risk manager. I remember when I fell into the risk-management role at the company I was working for at the time.
I almost had a nervous breakdown. Was it because of the pressure of handling insurance for the entire organization? Or was it because that same year, the company had decided to self-insure its entire fleet of 5,000 vehicles?
Nope. It was because I couldn't understand a single word they were saying!!
For every insurance professional who takes a position as a risk manager, there are nine or ten of us who fall into the job because a need develops as the organizations grow. That need may be filled by someone who has interacted with insurance companies, or like me, due to a short term anger episode.
Regardless, I only wished I could have found a book that explains how business insurance works and what a risk manager does.
All of the information on business insurance comes from the insurance industry. In fact, most companies rely on their insurance broker for insurance expertise.
But wait, aren’t they the ones who are selling you the insurance?
I am an anomaly in the insurance industry. I currently hold four insurance designations, including the Chartered Property Casualty Underwriting (CPCU) designation, which is considered the highest and most prestigious designation conveyed in the property/casualty insurance industry. Yet, less than 2% of CPCUs are risk managers and less than 1% work outside the insurance industry.
I am a risk manager, and although I am considered an insurance professional by the insurance industry, I have never worked in the insurance industry.
Hide! Here Comes the Insurance Guy is an approachable text on how to manage your insurance program to protect the assets of your company in a cost-effective manner. The book de-mystifies the process, and educates as well as entertains.
When was the last time you could say that about an insurance book?
If you are a risk manager, you will identify. If you are an executive, a business owner or just someone totally baffled by insurance (and you're not alone), it’s a must read.
Rick Vassar CPCU, ARM, AIS, ARM-P is the principal in The Vassar Group, LLC, in Sterling, VA, specializing in risk management and insurance consulting.
Copyright 2006 by The Vassar Group, LLC. All rights reserved. Reproduction in whole or in part without permission is prohibited.
Hide Here Comes the Insurance Guy – A Practical Guide to Understanding Business Insurance and Risk Management, 2006 iUniverse, Inc. ISBN 0-595-38608-6 (pbk) ISBN 0-595-83388-7 (cloth).
Hide Here Comes the Insurance Guy – A Practical Guide to Understanding Business Insurance and Risk Management, 2006 iUniverse, Inc. ISBN 0-595-38608-6 (pbk) ISBN 0-595-83388-7 (cloth).
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