Some Things Are Fairly Easy to Predict

Some policitical subdivisions are afflicted with a continuous  and consistant history of political business decisions rather than business, business decisions.  An astute and seasoned insurance broker does his homework first, prior to spending time and money chasing sales through a public bid process.

Some of the questions an insurance vendor would be wise to find answers, to evaluate his/her chances of success include: Does the political subdivision have a history of making political business decisions, or do they have a history of making prudent business decisions? Do they change insurance carriers and agents everytime a new Board of Trustees is elected? Who did they hire to act as their independent fee based insurance consultant? What is the track record of the consultant? Based on historical performance who does he seem to favor most often?  Do the carriers who have historically been awarded the business pay undisclosed fees and commissions? And which carriers do not as a matter of business practice?  Have past bid packages included complete and documented claim data, or has past bid packages provided sketchy and incomplete claim data? And, finally, an understanding of local politics is important in the insurance agent’s evaluation of his chances.

The “Art of War” should be required reading of those in the insurance industry specializing in political subdivisions. A battle to win can be fought within the enemy ranks without bloodshed – spys win wars, not battle ready soldiers.

Molly Mulebriar, a direct descendent of Nostradamus, offered her predictions on the Brownsville Independent School District’s move to change health insurance companies, agents and consultant/s back on April 27, 2009 on this weblog. To view her predictions, go to the April archives and find the posting dated 27 April. The password is “bidrigging”.

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