Casey Kempton de Nationwide has the vision of bringing positive vibrations to commitments between personal line insurers and their clients, and begins with the understanding of “mental models” that owners and drivers refer to understanding insurance.

Kempton, who has been president of Nationwide Personal Lines for about a year, has a research experience in cognitive anthropology, in his words, “the understanding of culture as it exists in minds.”

During the last two decades, he has been observing the culture of insurance clients, and the mental models they trust, such as “changing and saving.” Those shortcuts to understand personal line insurance are mature for change, he believes.

“I think the industry, in general, has the opportunity to provide the value of the protection we provide in multiple dimensions [into] A much more positive light than the way in which, collectively, we have committed to customers previously, “Carrier Management recently told.

Kempton was answering a question about why he chose to accept a position in personal lines, after leading more recent commercial initiatives of commercial lines in Chubb, at a time when automobile and owners insurers were dealing with their greatest challenges in decades. In short, there are many opportunities to understand that mental models work in personal lines, he suggested.

“I am not suggesting that customers see it negatively, but sometimes you listen:” I’m not sure if the insurance company is nickel and it will gather me, “only in general, not any company. Or ‘I am not sure at the time of the statement that I really have confidence in what is going to happen because I do not understand 100 percent what I am covered [for]. ‘

“Our product [is] A legal contract “, that independent agents and captive agents must translate for customers. It is not something that customers have to think every day.” So, in a moment of loss, there is a little panic that comes “He said, giving only an example of where he sees the opportunity for carriers as the country” really lean in the market. “

In particular, Kempton used the phrase “lean” to refer to the ways in which personal line insurers can connect with consumers to develop “trust, trust and control” in their interactions.

How we get here

Before sharing some specific ideas, Kempton offered a vision of recent history.

The advent of the Internet, the purchase of competitive prices and the data to allow price sophistication resulted in “the merchandise of 35 years of the personal line industry”, which first occurred largely in the car. With that mercantilization, “we erode part of the most local value of how automobile insurance connects to consumers,” he said, referring to the industry in general and pointing out the Nationwide’s lifetime service history through local agents.

“The advent of direct writers driven by the brand changed the perception of customers a bit”, resulting in a vision of the industry that focuses on the idea that “this is a product from which I can get Discounts, and that is motivating me to change and look for a better deal. “

“We are almost in that mentality of devaluing the value of the insurance company in that commercialized way,” he said.

The housing owners insurance is less commercialized (agents offer guidance on appetite for risk, the need for umbrella policies, etc., but car owners and homes finally “joined together,” he said.

The mental model “creates an expectation of the insurance company [that will] Give me as much as possible for the least amount of premium. ” “That is a faint equation when the world changes,” he said, referring to recent challenges of climate volatility and inflationary pressures that have led the insurers of the entire industry to raise owners and car insurance rates.

In the minds of customers, “” rates are increasing. That is bad. There is no understanding that the total cost to ensure that everything has increased at a rate and the dangers have changed. ”

Experiences are important

KEMPTON believes that insurers can begin the confidence construction process by helping customers appreciate the fundamentals of protection in situations of potential losses without catastrophe, non -climacatory. That implies bringing them solutions that involve them in mitigating the damage of the “basic exhibitions”, instead of educating them on the cost loads of the insurers.

As a consumer, “you can see your property insurance as a home maintenance policy: I can let things slide, and it’s fine because the insurance company will pay it if I have a loss.” Or you can recognize, as the owner, where your responsibility begins and stops in the fundamental conditions of your home … “

“Then his base cousin in relation to the projected losses is lower. Has the insurance and is affordable for the great [catastrophic] Losses, ”he said, proposing this change in the mental model as a step towards creating a better understanding of the insurance value.

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