How the Exchange is Different
Many fabricare businesses don't realize how different NIE is from other insurance programs. Here's our attempt to summarize NIE's major differences:
- LEGAL STRUCTURE: Most other insurance programs are owned by their stockholders. As a reciprocal exchange, NIE doesn't have stockholders. NIE's policyholders elect an Advisory Committee that determines how to distribute NIE's profit. A high percentage of NIE's profits have been returned to NIE's policyholders.
- EXPERIENCE: NIE's entire workforce spends all of its work time on fabricare insurance. Employees average tenure at NIE is 12 years. They have already dealt with most any problem your fabricare business will ever face.
- DIRECT DISTRIBUTION: NIE's entire workforce: sales, customer service, and all the decision makers work in the same office. When you have a coverage question or service need, you receive a prompt, efficient, definite answer.
- COMMITMENT: NIE serves only the fabricare industry. Since 1915, NIE's commitment to the fabricare industry has never wavered.
- SIZE & STRENGTH: NIE is small, but mighty! We are quick and efficient. Our financial ratios are stronger than most of the industry giants. Our reinsurers' assets exceed $20 billion. A.M. Best rates our financial condition as "Excellent."
In contrast, most other insurance programs involve multiple entities:
- AN INSURANCE CARRIER: The carrier makes the underwriting and pricing decisions, issues the policy, and pays the claims; plus
- A LOCAL INSURANCE AGENT: The local agent services the policy and guesses at the answers to your questions; and
- (SOMETIMES) A MANAGING GENERAL AGENT (MGA): The MGA serves as an intermediary between the carrier and the local agent.
There can be multiple problems with these multiple entities:
- Each entity keeps a portion of your premium.
- Most entities keep all the profit.
- Most of the people working for these entities have limited experience insuring fabricare businesses.
- Their appetite for insuring the fabricare industry comes and goes.
- The decision makers are hard to access.
- Communications can be complicated, inefficient, and confusing.
NIE's structure is designed to deliver the best possible insurance value to the fabricare industry!
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