Are you Reactive or Proactive?

It has been 35 years since I began selling insurance, and while I am not the oldest agent in the insurance business, I have seen my share of changes. 

Thirty five years ago Ronald Reagan was President, median Household Income was $19,074 (current dollars) and the cost of a first-class stamp was 15 cents.  At the movie theaters we watched Raiders of the Lost Ark, Chariots of Fire and On Golden Pond.  Chris Evert Lloyd and John McEnroe were the winners at Wimbledon while older legends Joe Lewis and Bill Haley died…. all as I began what ultimately has developed into 35 year (and still running) insurance career. 

The way we processed business changed in 1981, when IBM introduced the first personal computer that ran on 3.5 inch floppy drives and the office parlance FAX started to become common place.  Universal life insurance was also introduced in 1981 and not long after many people were advised to “Buy term and invest the difference” by A L Williams associates.  Accordingly, insurance for home, auto, business and other entities has also changed over the years. 

So why do I bring all this up?  We all know we live in far different times today than we did those many years ago, or do we?   While some aspects of our lives have changed, many others have not.  Most of us still live by a moral code of conduct.  A code that celebrates an honest day’s work for an honest day’s pay.  The desire to live and work in a community that is safe and where neighbors still watch out for each other.  The desire and expectation to conduct business with integrity and trust in an open and honest fashion.  These are things that should never change. 

Though these realities are true today, it is definitely harder to navigate in our current culture.  New technologies, programs and practices of our day have changed not only how business is conducted, but the nature and scope of business itself.  We are required to work harder/smarter and are responsible for understanding the advancements being made around us.  These improvements companies are making, whether good or bad, are being made to help them remain competitive in today’s market place.  Our challenge is to decipher their intentions and respond accordingly.  So my question to you is how do you deal with these “improvements”, are you reactive or proactive?

In my industry new concepts such as loss pic, the total cost of risk, business risk, risk retention groups and loss forecasting are the office parlance of today and the initials TPA have replaced FAX.  These new concepts are key to understanding and developing insurance protection to fit your specific needs/goals.

Most of us simply react when faced with increased premium or changes presented by our insurance companies.  I believe it is time individuals and companies consider the items mentioned above and become proactive with their insurance programs.  Don’t be stuck in the same system of the last thirty five years, give me a call, I’ll be glad to show you these contemporary techniques.


Rick Aardsma