Maybe Less is More?

[jvancleve]

Read this recently from James Clear:

"One of the common trappings of success is overproducing. Companies make money and rapidly expand their product line. Authors become popular and churn out books at a faster clip. Scale can empower, but it can also dilute. Something is lost when quantity is valued over quality. You have to maintain your standards even when all the forces around you seem to be calling for growth. Push back against more, more, more and remain committed to better, better, better."

Just wondering what other agents think about this. The Medicare agent marketing/training landscape seems consumed with methods to write more deals. I run into more and more clients in sub-optimal plans sold by agents who were either incompetent on some level or just in a hurry to get an enrollment. Thoughts?

 

[somarco]

The Medicare agent marketing/training landscape seems consumed with methods to write more deals. I run into more and more clients in sub-optimal plans sold by agents who were either incompetent on some level or just in a hurry to get an enrollment.

One of my pet peeves . . . and you hit the nail on the head.

Carriers have a constant internal battle between sales and underwriting. Sales wants more volume, underwriting wants a profitable block so they don't get in trouble and lose their reinsurance.

Several years ago one of the carriers I worked with for U65 major med was experiencing internal battles. They contracted with one of the largest marketers of individual health in the country (pre-Obamacare). That agency spent a lot of $$ on SEO, ad buying and DTC promotions. Their in house agents wrote a lot of business . . . and since it was all underwritten, the carrier did not take the time to review most apps beyond a cursory glance and almost everything was approved.

After the sale servicing was horrendous and the burden fell on the carrier to field policyholder calls and complaints because the agency was not performing that task.

The block was losing money but upper management was enamored with the volume and figured business through individuals would be profitable enough to offset losses by the 800 pound gorilla.

Eventually they came to their senses and parted ways with the mega-agency, but not before the losses caught up with them and the carrier was absorbed by a larger carrier.

My PCP has mentioned on more than one occasion that "none of their patients" understood how their MAPD plan worked and always had questions.

Based on comments I hear from prospective and existing clients, I don't believe this is an anomaly. MAPD plans are marketed, not sold, and too many seniors make buying decisions based on the sizzle, not the substance.

Too many agents are obsessed with "deals" and not focusing on client education and understanding.

 

[Cenla Agent]

This is the kind of thing that led one agent I knew years ago to focus on life insurance rather than health insurance. I think he was probably thinking mainly of group, FWIW. The idea was that life is more of a sell it and forget it (although perhaps not totally) whereas a lot of health clients can lead to a lot of headaches as well as less persistency. In the MA market, sometimes you can get into a situation where you feel like a caseworker, especially in the dual and SNP market.

 

[somarco]

My Medigap only block is not "set it and forget it" but a LOT less headache than the U65 and group health insurance gig.