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It's just a matter of time.
Probably because their current offering hasn't been out that long.
Mutual of Omaha Rate Increases
- Thread starter somarco
- Start date
It's just a matter of time.
Probably because their current offering hasn't been out that long.
- Thread starter
- #12
Do you know how to interpret the CSG data on rate increases? Is so then you know it is useless.
Example
2012 - MOO +8%
2013 - MOO + 9%
2014 - OIC + 3%
2015 - OIC +5%
2016 - OIC + 7%
What is the average increase on in force business? What is the average increase for new business?
Talked to a prospect a few weeks ago that was considering a plan from Aetna Health & Life. Agent said the increases over the last 4 years were 5%.
What agent failed to mention were the CLI increases including 9.5% before the plan was jerked off the market last year and replaced with AHL at rates 25% less than CLI.
CSG, carriers and agents will all exaggerate.
If you really want to know their history use the MOO blog for rate adjustments. Otherwise someone like me will come behind you and blow you out of the water with real data.
Remind me to never turn my back on you.
LewB
Expert
- 83
I called MOO and they emailed me their rate increase history for the last 5 years. For Plan F the average increase was 2.6% and for Plan G it was 2%.
I am not trying to defend MOO but they have competitive rates and the lowest increase history in my area.
The challenge isn't the rate increases on the current MoO carrier offering plans in your area. It's when they decide to stop offering with that carrier and roll out a new carrier. Here in Georgia we've been through MoO, United World, United of Omaha and now Omaha Insurance Company (that's over about a 10 year period). They've done a great job thus far with this last brand that is being offered. Many of us are just waiting for the other shoe to drop. Maybe it will, maybe it won't. But it's difficult to trust them after they've burned you a few times.
- Thread starter
- #16
Great.
How many carriers did they use over the last 5 years? Did you bother to research increases on their blog or just take their word for it?
Your area may be unusual, where MOO only used one carrier, never applied rate increases to existing policy holders only, and played tricks on new business rates.
If so, I would be very surprised.
For chuckles and grins, it took me less than 5 minutes to find the following on the MOO blog.
June 2013, United World 2010 Modernized plans, new and renewal - F 0%, G 9.5%
June 2014, United World 2010 Modernized plans, in force only - F 0%, G 9.3%
Oct 2014, MOO 2010 Modernized plans, new and in force - F -5%, G -5%
Nov 2015, United World 2010 Modernized plans, in force only - F 4%, G 4%
Nov 2015, United World plan N 18%
I also ran M & F rates, age 65, non-tob for zip 80212
MOO is apparently the current carrier they are using. No idea how long they have been offering them but based on United World rate announcements it appears MOO has been in CO less than 3 years.
They normally run 4 - 5 year cycles before retiring a carrier.
United World introduced June 2010 and my guess is they retired that name late 2013, early 2014.
Does any of this ring a bell with you?
How many carriers did they use over the last 5 years? Did you bother to research increases on their blog or just take their word for it?
Your area may be unusual, where MOO only used one carrier, never applied rate increases to existing policy holders only, and played tricks on new business rates.
If so, I would be very surprised.
For chuckles and grins, it took me less than 5 minutes to find the following on the MOO blog.
June 2013, United World 2010 Modernized plans, new and renewal - F 0%, G 9.5%
June 2014, United World 2010 Modernized plans, in force only - F 0%, G 9.3%
Oct 2014, MOO 2010 Modernized plans, new and in force - F -5%, G -5%
Nov 2015, United World 2010 Modernized plans, in force only - F 4%, G 4%
Nov 2015, United World plan N 18%
I also ran M & F rates, age 65, non-tob for zip 80212
MOO is apparently the current carrier they are using. No idea how long they have been offering them but based on United World rate announcements it appears MOO has been in CO less than 3 years.
They normally run 4 - 5 year cycles before retiring a carrier.
United World introduced June 2010 and my guess is they retired that name late 2013, early 2014.
Does any of this ring a bell with you?
LewB
Expert
- 83
somarco, I have only been in the business for three years. I searched MOO site and did not see a blog. Could you please post a link so I can research the rate increases in my area of Colorado. (81521)
I am only trying to do the right thing for my clients and when I use CSG, it seems to me that most of the other companies have higher rate increase than MOO.
I am only trying to do the right thing for my clients and when I use CSG, it seems to me that most of the other companies have higher rate increase than MOO.
- Thread starter
- #18
Express » Blog Archive » Upcoming Rate Adjustments
As indicated before, the way CSG illustrates historical rate increases makes their data useless.
When an old carrier is pulled, say OIC, and replaced with MOO all they do is average MOO increases which are artificially low. (The same is true in other states where United of Omaha replaced United World; OIC replaced UOO, and so forth).
You don't get a true picture.
Same is true when a carrier decides to substantially lower rates like CLI did in Georgia a few years ago.
What follows is just made up data but it illustrates how CSG calculates average increases.
2012 +10%
2013 - 30%
2014 + 10%
2015 + 10%
In this case CSG would add 3 10% increases plus the 30% decrease and divide by 4. Average increase would be 0%.
How accurate is that?
About as accurate as ignoring rate increases on in force policyholders and looking only at new business rates. Keep in mind that new biz will eventually (after a year) be subject to renewal hit as an in force policy.
Some carriers, one in particular, is well known for carrier swap. Retire one carrier (usually following a rate increase) and replacing with a new one at rates that are 25% less than you would pay for the same plan a month earlier.
Legacy policyholders are subsidizing low rates for new policyholders.
Some agents think there is nothing wrong with that. I take a different approach mainly because I don't like phone calls from clients whose rates have jumped 50% from 3 or 4 years earlier when they bought. Makes it difficult to explain why new MOO clients get a substantially better rate than they are paying.
They also notice the new rates are almost identical to what they were paying 4 years ago.
Maybe you don't have a problem with that. Just run and gun with the low rate and let the chips fall where they may.
But if you don't even know what is going on in the market you are behind the 8 ball and your credibility will be impacted.
Not all carriers give you historical rate info. Most of the rate histories I have are saved rate sheets from "popular" carriers in my market over the last 5 years or so.
I also know that most of the agents who are selling in my market have no clue what the market is really like and how it has been. My clients have the benefit of historical rate data and full disclosure on who does what.
As indicated before, the way CSG illustrates historical rate increases makes their data useless.
When an old carrier is pulled, say OIC, and replaced with MOO all they do is average MOO increases which are artificially low. (The same is true in other states where United of Omaha replaced United World; OIC replaced UOO, and so forth).
You don't get a true picture.
Same is true when a carrier decides to substantially lower rates like CLI did in Georgia a few years ago.
What follows is just made up data but it illustrates how CSG calculates average increases.
2012 +10%
2013 - 30%
2014 + 10%
2015 + 10%
In this case CSG would add 3 10% increases plus the 30% decrease and divide by 4. Average increase would be 0%.
How accurate is that?
About as accurate as ignoring rate increases on in force policyholders and looking only at new business rates. Keep in mind that new biz will eventually (after a year) be subject to renewal hit as an in force policy.
Some carriers, one in particular, is well known for carrier swap. Retire one carrier (usually following a rate increase) and replacing with a new one at rates that are 25% less than you would pay for the same plan a month earlier.
Legacy policyholders are subsidizing low rates for new policyholders.
Some agents think there is nothing wrong with that. I take a different approach mainly because I don't like phone calls from clients whose rates have jumped 50% from 3 or 4 years earlier when they bought. Makes it difficult to explain why new MOO clients get a substantially better rate than they are paying.
They also notice the new rates are almost identical to what they were paying 4 years ago.
Maybe you don't have a problem with that. Just run and gun with the low rate and let the chips fall where they may.
But if you don't even know what is going on in the market you are behind the 8 ball and your credibility will be impacted.
Not all carriers give you historical rate info. Most of the rate histories I have are saved rate sheets from "popular" carriers in my market over the last 5 years or so.
I also know that most of the agents who are selling in my market have no clue what the market is really like and how it has been. My clients have the benefit of historical rate data and full disclosure on who does what.
- Thread starter
- #20
