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About thirty years ago, the insurance industry started taking a turn for the worst. The industry, which used to be reasonably collaborative, changed its demeanor, becoming highly transactional and even adversarial. A large number of mutual insurance companies were taken over and reorganized to benefit the investors, while harming the agents and customers. People and trusted relationships became outmoded.
Agents quietly revolted, many were driven out of business. Customers, dissatisfied with the quality of insurance, began deserting their old formerly trusted relationships -- “churn” rates exploded, costing the system an enormous drain on profits. Investors saw their returns plummet.
For example, some insurance lines, such a Property & Casualty, (P&C) lost money on insurance -- but made money on their investments -- a crazy way to run a business. .
This picture depicts how the Mutual Insurance Industry should be functioning -- as an Aligned Alliance between the stakeholders
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