A CAS E STU DY
The Truth About
Direct Writers
With increased advertising dollars driving aggressive brand awareness, direct writers continue to turn up the
heat in Massachusetts. Learning the truth behind how these companies operate—from handling claims to
quoting new business—is the key to successfully competing with them.
CAS E #1: TH E SWAYE D C U STO M E R
Matthew Bouffard, account specialist in Arbella’s Service
Center and a licensed agent since 2005, believes that direct
writers are skilled at hooking customers with humorous
advertising, but the attraction ends there. Soon after receiving
Arbella’s direct writer training, Matt received a call from a
customer who wanted to leave Arbella for GEICO. Feeling
equipped and ready, he asked: Did she realize she was quoted
for just a six-month policy, and her rates would increase after
six months? Did she have deductibles for PIP and glass
coverage? Did she know if her vehicle had collision coverage?
“The customer ultimately decided to stay with us,” Matt said.
“I believe our greatest tool is knowledge. When you strip away
the funny characters and catch phrases, all that’s left of direct
writers are smoke and mirrors.”
CASE #2: THE FED-UP BODYSHOP OWNER
A local body shop owner, whom we’ll call “Chris,” recently
shared his story about working with GEICO. For some time
he’d found the GEICO claims process to be exceptionally slow
due to the number of supplements that had to be submitted.
While saving money is a common practice, Chris was shocked
to discover GEICO’s strategy for repairing cars with used parts.
Massachusetts allows body shops to repair cars with used parts
as long as they don’t compromise safety, but GEICO required
the shop to use them for what Chris considers to be critical
operational parts. One of the last GEICO cars Chris worked
on involved repairing part of the car’s suspension. In his opinion,
the way these used parts are tested isn’t reliable. “They based
the quality on the reported mileage of the car, even though
there could have been cracks in the steel,” he says. Chris felt
so uncomfortable that he decided he wouldn’t take any more
GEICO cars. He believes that if something goes wrong after a
customer drives off his lot, his shop would bear the brunt of the
blame, not GEICO. “That’s not a risk I’m willing to take.”
CAS E #3: TH E AG E NT WH O WO N
Agents don’t have to stand by and watch direct writers flood the
Massachusetts marketplace. Judi Pekkinen, account manager
at McDonald Insurance Agency in Quincy, MA, recently
received an email from an insured with a GEICO policy attached,
telling her that he wanted to switch. He said he was told that his
coverage would be exactly the same as what he had with Arbella,
but Judi quickly saw that wasn’t the case. “The quote did not
include optional bodily injury, which alarmed me. The wording
also led me to believe that it may only have been a six-month
policy.” Judi stressed the value of an independent agent and the
unparalleled service that direct writers just can’t match.
“I didn’t have to say anything more, because he made up his
mind to stay. He’s been a loyal customer ever since.”
Competing with direct writers isn’t easy—but Arbella can help!
For more tools, information, and training on how to successfully
compete with direct writers and win back customers, please
contact your territory manager today.
TRADE WINDS SPRING 2014
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