Rate Consolidation, Will It Continue?

[inreverse]

in MN, Female, NS,10K, other than KSKJ at 46.00, there are 22 companies between 52.00 and 57.00. Will this continue to get even tighter? How will this affect our business? Do you think it will spread out the premium dollars or will it put the companies that are easier to deal with in a much better position? Maybe more competition on the commission side? what do you think?

 

[Rearden]

in MN, Female, NS,10K, other than KSKJ at 46.00, there are 22 companies between 52.00 and 57.00. Will this continue to get even tighter? How will this affect our business? Do you think it will spread out the premium dollars or will it put the companies that are easier to deal with in a much better position? Maybe more competition on the commission side? what do you think?

There are so many variables beyond this that it just always depends.

Look at Columbian. Overpriced and worthless for the independent agent. However, because of how much control they give to marketers over renewal manipulation, they do a large level of premium, despite the product's inherent flaws on underwriting and premium-pricing, relative to other carriers.

Lincoln Heritage is another example. They write a boatload of premium, yet their product pricing is high.

Just like any product in the free market, the smart competitors have to read the tea leaves and design a niche-based product. Trinity is the perfect example. They only want your healthy business, and none of the rest. They reward you with very competitive pricing and underwriting, despite not having higher first year comp levels like Transamerica, etc.

I think pricing will continue to consolidate higher, but there will always be entrants into the marketplace that want to buy up premium, and undercut market averages.

 

[Baseball7]

As long as people still buy MOO/Colonial Penn/etc via the mail, start with LH/etc and Have term thrn didn't know it. We'll have work. For what it's worth LH does have a niche: 80-85 modified rating.

 

[Todd King]

As long as people still buy MOO/Colonial Penn/etc via the mail, start with LH/etc and Have term thrn didn't know it. We'll have work. For what it's worth LH does have a niche: 80-85 modified rating.

If someone 80-85 needs modified, then it's not worth the money. They pay as much into it in just a few short years than they have face amount. Better they run on down to the local funeral home and start dealing.

 

[bboman23]

If someone 80-85 needs modified, then it's not worth the money. They pay as much into it in just a few short years than they have face amount. Better they run on down to the local funeral home and start dealing.

I ran into a union national policy before that was 2 year wait, 3k face, and $165 per month. I have no idea how someone could sell that.

 

[jacobtn]

I ran into a union national policy before that was 2 year wait, 3k face, and $165 per month. I have no idea how someone could sell that.

What a joke. That's a crap deal for sure.