Thought leaders talk about zoomed-in people vs. zoomed-out people.
A classic example is someone working for a credit card company who is fired up about the mission of helping people gain access to credit—a good thing. But taking a step back might cause her to reevaluate, because too much access to credit and high interest rates can be bad.
Large companies love a good zoomed-in employee. The world runs on people like these.
I was poached by larger insurance companies. I didn’t end up going with them, for a few reasons. But one was that I worried I’d become a zoomed-in producer in a company of 50,000 employees.
I wanted the freedom to zoom out.
For my clients, I wanted to help them zoom out sometimes, too. To say, “Hey, maybe you don’t need insurance at all.” Or, “Maybe this risk is worth underinsuring.”
One example: Clients ask about jewelry insurance. We say it’s a great product, with great bundling options these days. But then, maybe take that money and buy more jewelry with it instead of insuring what you already have. Maybe that’s a better use of your capital.
Now, if losing that jewelry would be financially devastating, that’s a different conversation.
I love seeing clients’ reactions when I say that. Priceless!
I’m not calling myself a consultant. That’s a separate course and designation I don’t have. I’m just saying that sometimes the best insurance advice is to buy less insurance.
Stonebrook fosters a culture of radical honesty for the client’s sake. We believe strongly that the client’s trust is worth more than any premium.
As a whole, the insurance industry takes a very zoomed-in approach to everything. It’s by nature risk-averse, because you’re literally dealing with risk aversion all day.
Insurance brokers are trained to think about risk. And understandably, we’re often thinking about our own risks, too. What if something goes wrong? What if a client sues? What if we recommend too little coverage?
It almost comes with the territory.
But sometimes, in trying to eliminate every possible risk, we forget that our clients have businesses to run and lives to live.
I think a good insurance broker has to take a step back and put himself in the business owner’s shoes.
Yes, it would be nice to be insured for every single thing out there. But there aren’t unlimited funds available. You have payroll. You have rent and overhead. You have a family to feed.
A good insurance broker should have some experience knowing what it’s like to make payroll for a business.
That’s what I mean by a zoomed-out broker vs. a zoomed-in broker.
I once pitched a healthcare company, and they rejected me. They said, “It’s fine, we’re doing well. We can afford our insurance.”
I laughed. Because in all my years of doing insurance, no one had ever said that.
But being able to afford something doesn’t mean you’re getting good value for it.
Insurance costs what the market dictates. And paying more than the market for equivalent protection is an absolute waste of funds, unlike, say, paying for a different type of service where you are ostensibly getting some higher level of service.
At least, that’s what Stonebrook believes.
Now, if a certain carrier has a reputation for great claims service, that’s something else. And obviously, coverage, exclusions, and deductibles matter. We’re not suggesting that all insurance policies are created equal.
But that’s what drives us at Stonebrook.
Insurance is about the efficient use of capital. Paying more than you have to, or paying for something unneeded, is a waste of capital, an inefficient use, and a drag on the economy.
Every unnecessary premium is money that could have gone toward hiring another employee, expanding a business, or providing for a family.
Insurance should protect prosperity, not unnecessarily consume it.
We’re here to help our people, help the economy, help our country.
Wish us luck.
Best regards,
Nathan