3 Insurance Myths Debunked

It was Albert Einstein who said that insanity is doing the same thing over and over again and expecting different results. Yet many companies stick with the same business partners year after year, even after customer service deteriorates or costs continually increase.

Over the past 30 years of providing customized lender-placed and forced-placed insurance products and services, we’ve heard a lot of explanations given for why lenders are reluctant to change insurance providers. But once they hear the facts, they realize they let their fears get in the way of growth. 

Let’s take a look at a few of these myths and find out why they don’t add up.

Myth #1 – Changing providers won’t save that much money

If you choose an insurance broker that has established relationships with many different carriers, they are able to immediately identify ways to save you money. Acting as an independent agent, an insurance broker is able to bring in bids and policy options from many different carriers. This way, you get all the information you need to compare and make the choice that’s right for you—and often at a lower cost, and/or better coverage than you had before.

Myth #2: Changing providers is cumbersome

On the surface, this idea is easy to believe. The reality is that your new insurance provider will assist in training your staff, and at no extra cost. Plus, switching providers is extremely easy when you partner with a company that places a priority on customer service.

Myth #3: Changing providers is… well, scary.

We get it. No one has a crystal ball, and it can be a little daunting to switch to a new provider when you aren’t sure they’ll deliver. But when profitability and coverage matter, it’s important to explore your options.

As we see it, most of the anxiety over switching providers stems from the fact that many lenders and servicers aren’t happy with their current providers. We often hear from clients that their previous provider wasn’t giving them the attention they deserved and that managers were rarely involved in their relationship.

At IL Group, we do things differently. Our client service representatives are in ongoing communication with our clients throughout the duration of the relationship. We also act as a liaison between our clients and insurance carriers, essentially serving as a safeguard for their success at no additional cost. In short, we make switching simple—because it should be.

If you’re starting to realize that you’ve been holding back switching insurance providers because of a myth, we invite you to reach out and discover how easy it is to fast track your success. We’ll take a close look at your operations, get an understanding of your goals and help you determine whether it’s time for a switch.

To get started, give us a call at 866-300-7020 or email us at inquiries@ilgroup.com.