Amica Rules

We’re insured (house, cars, personal property, liability, etc.) by Amica, a Rhode Island-based firm that I think is the best in the business.

Today they sent a letter explaining that an error in the rate created a lower insurance premium on my homeowner’s policy than should have been the case. I braced for the added amount due. The letter went on:

“We understand you trust us to provide you with timely and accurate policy information and we value your loyalty. Therefore, we are taking the unprecedented steps necessary to honor the lower premium stated in your renewal for the remainder of this policy period. However, we must correct the rates upon your renewal policy which may contribute to an increase in the cost of your insurance. As we embark on our 104th year of providing insurance coverage, Amica’s philosophy remains the same—courteous, professional service that exceeds your expectations. Without our valued, loyal policyholders, we would not be the company we are today.”

My policy doesn’t renew until September, 2011. I don’t think I need to say another word.

6 thoughts on “Amica Rules

  1. Great example on how small things makes all the difference needed. Here as related to customer retention. I bet many policy holders will talk positively about this to other customers and prospects, and hence this move will also add to customer acquisition.

    I admire “thinking” companies that connect both heart and mind, left and right brain in this way shown.

    As I do some advisory work with Customer Strategies (i.e. Attraction, Acquisition, Retention, Penetration, Migration, and Attrition) I will use this as a good example.

    Thanks, Alan.

    Bjorn H Lindback

  2. We had a similar experience with … PSE&G (our gas & electric company). They realized for months they did not charge us for electricity properly. The added amount was to be around $4,000. The bill said we had to pay it within 30 days. … that is until we opened the next letter from PSE&G which explained it was their error and they would eat the $4,000 but understand that our next bill will include the monthly electric charge.

    Not that we would have had a choice…it was very nice of PSE&G to forfeit the $4k.

  3. As an insurance industry professional, I’m not sure that people outside of the industry will recognize just how unprecedented this really is. The fact that they honored the lower premium may or may not have been their choice. Insurance regulations make the tax code look like Dr. Seuss’s work. But the attitude conveyed in the post, the fact that they were pro-active, the tone of the letter, the recognition that you are a customer and that the mistake was not yours, well that in my opinion is sadly unprecedented. There are many great companies and many great people in this business, unfortunately we don’t hear about them enough. Thank you Amica.

  4. It’s good to hear these.

    The gas company here sent me a $5,000 bill for one month, out of the blue. I pointed this out to them, and they said, “We’ll send a crew.”

    “Why?” I asked.

    “Because there’s obviously something wrong with your meter!”

  5. Guy, excellent points. I wish Citizen’s Bank here would act the same way. Instead, they try to squeeze every penny they can from customers, rather than build relationships even with excellent customers. The best and the worst right here in Providence.

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