In a message dated 9/5/02 3:57:18 PM, [EMAIL PROTECTED] writes:
<< Howdy, It seems like I've seen advertisements for insurance companies who'll offer quotes from their competitors, even if their competitor's quotes are cheaper. I can think of two reasons why a firm would do this. First would be the warm-fuzzy model, where the company is banking on goodwill resulting from helping the consumer shop around. They can't be all bad if they help me out rather than just make a buck. The second would be the better-actuary model, where the firm is betting that its actuaries (& their models) are better than the competitors', so the firm believes that the competitors are actually making bad bets and will ultimately go out of business or adjust so that their prices go up. Do these sound reasonable, or do you think there is a better reason. If so, what? Curiously yours, jsh >> I think they offer you quotations from their most expensive competitors, thus combining the warm-fuzzy goodwill generation with a showing of lower rates. David Levenstam
