Tom and Harry’s Par-Tee Debate on Insurance Agents

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On a sunny Saturday morning at the local Green Meadows Golf Course, two lifelong friends, Tom and Harry, found themselves in the midst of a discussion that was as meandering as the course itself. The topic of the day? The virtues of an insurance agent who educates and nurtures relationships with clients versus one who merely sells a product.

As they approached the first tee, Tom, ever the pragmatist, launched the opening salvo. “You know, Harry, I think an insurance agent should be like a good caddy. They should know the course, understand the traps, and help you make the best shot possible,” he said, taking a practice swing. Remember, insurance is all about the final cost.

Harry, adjusting his sunhat, chuckled. “Absolutely, but there’s a catch. My agent is like that caddy who not only carries your clubs but also teaches you which club to use and why. It’s not just about making sales; it’s about making sense of the insurance jungle.”

The two teed off, and the debate continued as they strolled to their balls. “See, my guy does the basics, and that’s fine by me. As long as I’m covered, why need the extra fluff?” Tom queried, eyeing his shot.

“Fluff?” Harry exclaimed with a grin. “It’s hardly fluff when you’re facing a sand trap of legal jargon and complex clauses! That’s when you need someone who doesn’t just hand you a club but also shows you how to swing it.”

As they reached the green, Tom lined up his putt. “I guess when you put it that way, it does make sense. Maybe I do need someone who isn’t just there at the sale but walks the course with me.”

“Exactly!” Harry replied, as he watched Tom narrowly miss his putt. “It’s about building a relationship where they know your game, your life, your family, your business, and how it all changes over the years. That’s the agent who not only gets you onto the green but helps you stay there.”

They moved on to the next hole, with the conversation drifting from insurance to other life matters. However, the topic resurfaced again as they waited for a slow group ahead.

“You know, I think you’re onto something,” Tom conceded as they observed the tortoise-paced foursome. “Maybe I should look for an agent who’s more like a coach than a salesman. Someone who’s there in the long haul, not just for the quick sale.”

Harry nodded, taking a sip from his water bottle. “And when life throws you a curveball, or in our case, a rogue golf ball, you’ll have someone who understands your game well enough to help you play through it.”

As they finished up their round, the two friends realized that while they might not agree on every stroke or strategy in golf, when it came to insurance, they both valued someone who was more partner than pitchman.

With their clubs slung over their shoulders and the sun setting behind the 18th hole, Harry quipped, “Just think, Tom, with the right agent, dealing with insurance could be almost as enjoyable as golf!”

Tom laughed. “Let’s not get ahead of ourselves. But maybe a bit less frustrating.”

And with that, the two walked off the course, their debate settled, at least until the next round.

 

Knowing When to Update Your Business Insurance Coverage

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In the ever-evolving landscape of business, insurance coverage isn’t just a necessity—it’s a dynamic tool that safeguards your enterprise against unforeseen risks and liabilities. However, many business owners overlook the importance of regularly reviewing and updating their insurance policies, potentially leaving their operations vulnerable to new threats. Identifying the right moments to update your business insurance can make a significant difference in your company’s resilience and financial health.

Regulatory Changes

One of the most clear-cut indicators that it’s time to update your business insurance is a change in laws or regulations that affect your industry. Governments frequently update regulations to address new risks or societal changes, such as data protection laws for online businesses. An insurance policy that was compliant a year ago might not provide adequate coverage under new laws, exposing your business to fines or lawsuits.

Business Expansion

Growth is a goal for many businesses, but with expansion comes new risks. Whether you’re increasing your workforce, launching new products, or entering new markets, each of these milestones necessitates a review of your current insurance coverage. For instance, expanding into a new state or country might require additional forms of insurance due to different legal requirements. Similarly, introducing a new product line could expose your business to new liability risks that your current policy doesn’t cover.

Changes in Revenue

Significant fluctuations in your business’s revenue can also be a signal to reevaluate your insurance needs. Higher revenue levels can increase your liability exposure, necessitating higher coverage limits to protect against potential claims. Conversely, if your business is facing a downturn, you might need to adjust your policies to reflect your current operational size and risk profile, potentially reducing premiums.

Technological Advancements

The rapid pace of technological innovation can quickly render an existing insurance policy outdated. For example, businesses that have recently digitized their operations may need to consider cyber liability insurance to protect against data breaches or cyber-attacks. Similarly, companies utilizing new technologies or machinery might require updated property insurance to cover these assets adequately.

Natural Disasters and Climate Change

The increasing frequency and severity of natural disasters due to climate change mean that businesses must regularly assess their insurance coverage for natural catastrophes. If your business is located in an area prone to floods, hurricanes, wildfires, or other natural disasters, it’s critical to ensure that your insurance policy reflects the heightened risk level and provides sufficient coverage for such events.

Changes in Ownership or Management

Transitions in ownership or significant changes in management can impact the direction and operations of a business. These changes often bring new strategies, operational practices, and risk profiles, necessitating a review of the existing insurance coverage to ensure it aligns with the new management’s vision and the company’s updated risk landscape.

Regular Annual Reviews

Even if none of the above changes have occurred, it’s wise to conduct an annual insurance review. This practice ensures that your coverage remains aligned with your business’s current state and future goals. Regular reviews also provide an opportunity to explore cost-saving options, like bundling policies or adjusting deductibles.

Insurance is not a set-it-and-forget-it component of your business. It’s an essential tool that must evolve alongside your company. By staying vigilant and understanding when to update your business insurance coverage, you can protect your enterprise against emerging risks and ensure its long-term sustainability. Regular consultations with your insurance provider can help you navigate these changes smoothly and keep your coverage in line with your business’s needs.

 

What Are The Traits of A Good Insurance Agent?

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Very Simply Put

  1. Honesty

Selling insurance is about giving customers, businesses, and individuals solutions to their risk issues. Misrepresenting the facts, or trying to sell a policy, does more harm than good to their customers. A good agent will not try to sell anything; they will listen and become a problem solver first. Then and only then might insurance solutions or options be provided.

  1. Responsive Client Service

When clients phones or emails, a timely answer is essential because they need the information to make decisions. When a client spends their money, they have a right to feel secure and content during the course of the business relationship. Through actively listening to and empathizing with our valued clients, agents can find success

  1. Industry Knowledge

Selling a policy is only one aspect of what it means to be an insurance agent. Agents must be able to provide a thorough understanding of all facets of the products and services they sell, as well as how each client’s situation may be addressed. The agent should be trained in all aspects of the risk management process.

  1. Community Involvement

Being a respectable member of the community is a must for running a successful insurance agency. We believe in fostering relationships and giving our neighbors access to resources because we are local leaders. To make the neighborhood a better and safer place to live, we collaborate with customers and businesses.

Our Philosophy

Over the last sixty years, we have established a reputation for honesty, high morals, integrity and friendly, professional customer service – pillars of a successful insurance agency. Based upon this foundation, the staff of Reichley Insurance Agency commits to the following mission:

  • To provide the clients with quality products and services through financially sound insurance companies committed to the American agency system.
  • To provide prompt and courteous service by handling each account as if it were our own and by treating each client the way we would want to be treated.

We further commit:

  • To enhance our professionalism by continuing our education in the insurance industry as well as supporting opportunities for personal growth.
  • To communicate with each other and work together in harmony towards the success of the agency, and each participant within the agency.

These commitments result in the highest of customer satisfaction and confidence. They are Reichley Insurance Agency’s highest priorities. Achieving them enables both collective and individual success and thus fulfill our mission.

 

Two Ways To View Insurance

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Tom And Harrys Excellent Adventure

Inside the bustling confines of Café Caffeine, amidst the clinking of cups and the murmur of conversation, sat two friends and insurance agents, Tom and Harry, engaged in a spirited debate. Tom was a stickler for slashing prices, while Harry prided himself on selling the value, not just the steak.

Tom: “Harry, you’ve got to admit, nothing makes the phone ring like screaming, ‘Discounts! Get your discounts here!’ It’s like opening the floodgates.”

Harry, with a mischievous grin: “Oh, Tom, that’s one way to do it. If you’re running a supermarket sweep. Me? I prefer to think of insurance as fine dining, a vule. Why sell fast food when you can offer a gourmet experience?”

Tom: “Gourmet? It’s insurance, Harry, not a Michelin-star restaurant. People want savings, not caviar with their coverage.”

Harry: “Ah, but that’s where you’re missing the true value or flavor, my friend. When I sell a policy, I’m not just offering protection; I’m selling peace of mind and 24/7 concierge. It’s like insurance à la carte. Sure, you might lure them in with discounts, but I keep them coming back with the full-service experience.”

Tom: “Concierge, huh? What do you do, tuck them in at night and read them their policy until they fall asleep?”

Harry, laughing: “Only on request. But think about it. When someone’s life goes sideways, they don’t remember the 10% they saved. They remember the voice on the line or the personal visit, helping them patch their world back together. That’s value, my friend.”

Tom, chuckling: “I suppose next you’ll offer to insure their heartbreak too?”

Harry: “Now there’s an idea! ‘Broken hearts mended here. Terms and conditions apply.’ I’d buy that.”

Tom: “Alright, Harry, you’ve made your point. Value has its… well, value. But if you start offering heartbreak insurance, sign me up. I might finally get over my high school crush.”

Harry: “Deal. But it comes with a premium. After all, the true value is priceless.”

As they shared a laugh, it was clear that while their methods might diverge, their hearts and their humor were in the right place. In the world of insurance, whether you’re selling on price or on value, the real win is in making sure your clients feel protected, appreciated, and, yes, even a little bit entertained.

 

 

AI Is Here To Stay, But Will It Kill Customer Service?

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Integrating Artificial Intelligence (AI) into various sectors has been a revolutionary step towards automation and efficiency. The insurance industry, known for its reliance on personal relationships and human judgment, is no exception. As AI continues to evolve, there’s growing concern about its potential to disrupt traditional customer service roles, particularly those of insurance agents. This blog explores how AI may transform or even potentially “destroy” the role of insurance agents in customer services, while also considering the broader implications for the industry.

  1. Automation of Routine Tasks

AI and machine learning algorithms are increasingly capable of handling routine tasks such as answering basic customer queries, processing claims, and even underwriting policies. Chatbots and virtual assistants can provide 24/7 service, answering FAQs and guiding customers through the insurance process without human intervention. While this improves efficiency and reduces costs, it also diminishes the need for human agents for these tasks, potentially leading to job displacement.

  1. Personalized Customer Experiences

AI can analyze vast amounts of data to offer personalized insurance products and services. By understanding a customer’s unique needs and risk profile, AI systems can tailor recommendations much more accurately than a human agent might. While this bespoke service is advantageous for the customer, it challenges the traditional role of insurance agents as the primary source of personalized advice.

  1. Enhanced Risk Assessment and Pricing

AI’s ability to process and analyze large datasets enables more accurate risk assessment and pricing of insurance policies by insurers. This precision in understanding risk profiles and predicting outcomes can streamline the underwriting process, reducing the reliance on agents to assess and negotiate terms. As AI systems become more sophisticated, the nuanced judgment of experienced agents may become less critical, potentially undermining their role in the industry. However, this can reduce a personal human judgment on underwriting and eventually increase prices.

  1. The Diminishing Human Touch

One of the most significant impacts of AI on insurance agents’ customer service roles is the potential loss of the human touch. Insurance is a business built on trust and relationships, especially when it comes to claims, which often occur during stressful times for the customer. While AI can offer efficiency and personalization, it lacks the empathy and understanding a human agent can provide. This shift could lead to a more transactional relationship between insurers and their customers, potentially eroding customer loyalty and satisfaction. This would be a disaster.

 

The impact of AI on insurance agents’ roles in customer service is multifaceted. While there are real concerns about job displacement and the loss of the human element in customer relationships, there’s also the potential for significant industry evolution. By automating routine tasks and leveraging data for personalization and efficiency, AI can free up human agents to focus on providing more value-added services. This transformation, however, requires a strategic approach to reskilling and redefining the role of the insurance agent in the age of AI. As the industry navigates these changes, the balance between technology and human touch will be crucial in maintaining trust and satisfaction among customers.

Auto Insurance Troubles in 2024

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In December 2023, the United States witnessed a remarkable surge in motor vehicle insurance premiums, marking the most substantial increase since the mid-1970s. According to government data, these premiums escalated by a notable 20.3% compared to the same period in the previous year. This rise in insurance costs has emerged as a significant element in the broader inflationary trend, contributing to a 3.4% year-over-year increase in the Consumer Price Index (CPI) for December, as reported by the Labor Department.

The increase exceeded the projections of economists polled by Reuters, who had anticipated a 3.2% rise, and surpassed November’s 3.1% increase. While high shelter costs continue to play a major role in overall inflation, the unprecedented hike in car insurance rates stands out as a key driver. This surge in insurance premiums has been consistent throughout the year, with a 1.5% monthly increase in the last month alone, paralleling the average monthly rise over the past year.

Tom Simons, a U.S. economist at Jefferies, points out the uniqueness of the motor vehicle insurance (MVI) component in the CPI. He notes the lack of immediate signs of relief from these high rates. Several factors contribute to this trend, including increased costs for labor and vehicle parts, higher vehicle prices, declining demand from reinsurers, and risks associated with natural disasters.

Auto insurance, typically subject to state-level regulation and exhibiting significant regional cost variations, has rarely been a dominant factor in overall inflation. However, in the final quarter of 2023, it accounted for 15% of the headline price increases, marking a significant shift.

The White House has responded to this situation, with National Economic Council Director Lael Brainard emphasizing the need for independent agencies to focus on combating unfair and deceptive pricing practices. This response indicates a potential increase in regulatory scrutiny in the insurance sector.

While the impact of rising insurance costs on the overall inflation trajectory and the Federal Reserve’s monetary policy remains uncertain, Simons suggests that it might not be substantial enough to influence monetary policy decisions significantly. However, he also admits the difficulty in forecasting the future trend of these insurance costs.

The dramatic rise in motor vehicle insurance premiums in the U.S. has become an unexpected and influential factor in the nation’s economic scenario, particularly in the context of inflation. This development presents new challenges for both policymakers and economic analysts.

How AI Might Turn the Insurance Agent-Customer Connection into a Dark Comedy

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In the swirling chaos of artificial intelligence (AI) infiltrating the insurance industry, there’s a subplot emerging. As AI takes its place on the stage, promising efficiency and innovation, there’s a risk that the once-harmonious relationship between insurance agents, insurance companies, and customers may be in for a twist and not necessarily the good kind.

We have always thought and promoted the idea that insurance is about relationships, building trust and educating clients on their risk. But changes are coming and we believe it is important to protect this trusted relationship, now more than ever, However, We thought it might be fun to see where AI might take us in the near future.  Enjoy the ride.

If AI Became Movie Titles

Lost in Translation

Picture this: a customer asks an AI-driven chatbot about coverage for three rental properties in three different states, and suddenly, they find themselves tangled in a web of algorithmic confusion. It’s like trying to teach your grandma how to use Snapchat – confusing, frustrating, and a little bit hilarious. Who knew insurance policies could be the punchline of a cosmic joke? An experienced agent can guide you through the process of making sure you get the coverage that is right for you.

The AI Apocalypse

While AI is making strides in understanding emotions, it still struggles with the subtleties of human feelings. It’s a bit like watching a robot attempt stand-up comedy – you appreciate the effort, but the delivery might be a tad mechanical. Customers facing tough situations may find themselves yearning for the soothing, empathetic tones of a real-life insurance advisor, not the calculated responses of a digital comedian. When you call a local agent you get a real person who lives and works in your community.

The Insurer Bot Uprising

Imagine being dumped by an insurance algorithm because you’re deemed too “risky” – it’s like being ghosted by a machine. The cold, algorithmic decisions might leave customers feeling like they’re stuck in a bad breakup movie. Agents can help you when there are issues involving, payments, claims or general service issues. 

Privacy Predicament

If George Orwell were writing about insurance in the age of AI, he might call it “1984.0: Big Data’s Revenge.” The fear of constant surveillance by algorithms could turn the insurance game into a paranoid comedy thriller. Cue the dramatic music as customers wonder, “Who’s watching me now?”. Insurance relationships should be built on trust.

The Liability Labyrinth

Who’s responsible when the AI-driven insurance messes up? It’s the insurance industry’s very own mystery thriller – “Whodunit: The Case of the Rogue Algorithm.” Picture insurance agents donning detective hats and customers playing the role of amateur sleuths. Spoiler alert: the butler did it, or was it the algorithm? Insurance agents are the first line of defense, we are on your side.

In this dark comedy, the insurance industry is navigating uncharted territory. While AI brings its own set of challenges, it also adds a touch of absurdity to the insurance game. As agents and customers waltz through this AI-driven circus, one thing is for sure – the insurance industry is gearing up for a blockbuster, and it’s leaving us all wondering if we’re starring in a comedy, a drama, or a tragicomedy of errors. Striking the right balance between technological innovation and the human touch is crucial to ensuring that the insurance industry’s evolution doesn’t come at the cost of a deteriorating relationship with its customers.

We hope you enjoyed the ride.

 

 

 

 

Navigating Insurance, A Year In Review 2023

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The insurance industry saw significant changes in 2023 due to technological advancements, regulatory shifts, and economic uncertainties. Let’s examine the major concerns for individuals and businesses within this evolving insurance landscape, emphasizing the need for strategic planning and informed decision-making.

Top Insurance Issues In 2023

Cybersecurity Threats: With the digital age intensifying, families and businesses face increased risks of cyber-attacks and identity theft. Comprehensive insurance policies covering identity theft, data breaches, and ransomware attacks are in high demand.

Supply Chain Disruptions: Ongoing global supply chain issues necessitate insurance solutions to mitigate risks related to operational delays and disruptions.

Rate Increases: The insurance industry is witnessing substantial rate increases across various policy types, challenging individuals, and businesses to find a balance between comprehensive coverage and budget constraints.

Inflation Impact: Inflation affects both insurance premium costs and coverage adequacy. The cost of medical expenses, car repairs, and construction costs has impacted insurers profitability. Everyone is concerned about maintaining sufficient protection as claim costs and operational expenses rise.

Regulatory Changes: Adapting to regulatory changes in different jurisdictions is crucial. Businesses seek insurance that protects against potential legal and regulatory liabilities. Families need to be educated on how building codes may impact rebuilding after a loss.

Insurers Limiting Coverage: Insurers are becoming more selective, often limiting coverage in many areas. This trend prompts everyone to reevaluate their risk management strategies and seek alternative insurance and even none insurance solutions.

Employee Health and Safety: The focus on employee health, including mental well-being, remains a priority. Companies are looking for insurance options that provide extensive coverage for employee health issues.

Actions for 2024

As we prepare for 2024, it’s crucial to take proactive steps in managing personal and business insurance needs:

Reviewing Coverage: Regularly review your insurance policies to ensure they align with your current risk profile and needs. Adjustments may be necessary to address new risks or changes in your business operations.

Assessing Limits: Evaluate the limits of your current insurance coverage. With the impact of inflation and changing risk landscapes, it might be necessary to increase these limits to ensure adequate protection.

Working with Your Insurance Agent: Collaborate closely with your insurance agent or broker. Their expertise can provide valuable insights into market trends, new insurance products, and strategies to optimize your coverage in light of emerging risks and industry changes.

Exploring Alternative Solutions: In response to insurers limiting coverage, consider exploring alternative risk transfer solutions, increasing deductibles, and even reviewing coverage to determine if you need especially coverage.

Emphasizing Risk Management: Enhance your internal risk management practices. Effective risk management can not only reduce your insurance costs but also improve your organization’s overall resilience.

Staying Informed: Keep abreast of industry trends, regulatory changes, and economic factors that could impact your insurance needs. Staying informed enables you to anticipate changes and adapt your insurance strategy accordingly.

Navigating the insurance landscape in 2024 and beyond requires a multifaceted approach for us all. By proactively reviewing coverage, assessing limits, working closely with insurance professionals, and staying informed, individuals and businesses can effectively manage their insurance needs in the face of evolving challenges and opportunities. Preparing for 2024 involves not just adapting to current trends but also anticipating future developments in the insurance sector.

Auto Insurance Troubles in 2024

/in ,

In December 2023, the United States witnessed a remarkable surge in motor vehicle insurance premiums, marking the most substantial increase since the mid-1970s. According to government data, these premiums escalated by a notable 20.3% compared to the same period in the previous year. This rise in insurance costs has emerged as a significant element in the broader inflationary trend, contributing to a 3.4% year-over-year increase in the Consumer Price Index (CPI) for December, as reported by the Labor Department.

The increase exceeded the projections of economists polled by Reuters, who had anticipated a 3.2% rise, and surpassed November’s 3.1% increase. While high shelter costs continue to play a major role in overall inflation, the unprecedented hike in car insurance rates stands out as a key driver. This surge in insurance premiums has been consistent throughout the year, with a 1.5% monthly increase in the last month alone, paralleling the average monthly rise over the past year.

Tom Simons, a U.S. economist at Jefferies, points out the uniqueness of the motor vehicle insurance (MVI) component in the CPI. He notes the lack of immediate signs of relief from these high rates. Several factors contribute to this trend, including increased costs for labor and vehicle parts, higher vehicle prices, declining demand from reinsurers, and risks associated with natural disasters.

Auto insurance, typically subject to state-level regulation and exhibiting significant regional cost variations, has rarely been a dominant factor in overall inflation. However, in the final quarter of 2023, it accounted for 15% of the headline price increases, marking a significant shift.

The White House has responded to this situation, with National Economic Council Director Lael Brainard emphasizing the need for independent agencies to focus on combating unfair and deceptive pricing practices. This response indicates a potential increase in regulatory scrutiny in the insurance sector.

While the impact of rising insurance costs on the overall inflation trajectory and the Federal Reserve’s monetary policy remains uncertain, Simons suggests that it might not be substantial enough to influence monetary policy decisions significantly. However, he also admits the difficulty in forecasting the future trend of these insurance costs.

The dramatic rise in motor vehicle insurance premiums in the U.S. has become an unexpected and influential factor in the nation’s economic scenario, particularly in the context of inflation. This development presents new challenges for both policymakers and economic analysts.

Three Key Action To Improve Your Personal Insurance In 2024

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In 2024, as in any year, managing your home and auto insurance effectively is crucial for financial security and peace of mind. Here are three key actions individuals should take to ensure they are optimally covered:

  1. Regularly Review and Update Policies

Why It’s Important:

Adapting to Changes: Life circumstances change—like buying a new car, renovating a home, or even changes in local laws—that can affect insurance needs.

Cost-Efficiency: Regular reviews can help you find better rates or discounts you might now qualify for and consider cost-shifting of dollars within your current insurance program to develop a stronger risk response if your budget for coverage is already reached its maximum.  Please only do so with the guidance of your agent so that all changes are fully understood, and risk assumptions are managed.

How to Do It:

Annual Check-ups: Set a yearly reminder to review your policies.

Consult with Professionals: Seek advice from insurance agents to understand changes in the market and how they impact your coverage.

  1. Increase Your Understanding of Insurance Terms and Coverage

Why It’s Important:

Avoiding Underinsurance: Lack of understanding can lead to inadequate coverage, leaving you vulnerable in the event of an accident or home damage.

Making Informed Decisions: Knowing what you’re buying helps in choosing the right coverage for your needs.

How to Do It:

Educational Resources: Utilize resources provided by insurance companies, or independent educational websites.

Ask Questions: Don’t hesitate to ask your insurance provider to clarify terms or coverage details.

  1. Explore Discounts and Bundling Options

Why It’s Important:

Cost Savings: Many insurers offer discounts for things like multiple policies, safe driving, or home security upgrades.

Convenience: Bundling home and auto insurance can simplify your financial management and often leads to discounts.

How to Do It:

Research: Have your agent look into various insurers to see what discounts they offer.

Negotiate: Don’t be afraid to negotiate with your current provider for better rates, especially if you have a good history with them.

Managing your home and auto insurance is an ongoing process. By staying informed, reviewing your policies regularly, and exploring all available options, you can ensure that you have adequate coverage without overspending. Remember, the best insurance policy is one that is tailored to your specific needs and circumstances.