Will There Ever Be a Day when Health Ins Agents Are No Longer Needed?

[Mark]

If everyone is required to purchase health insurance, will there come a time, when the insurance companies no longer need health insurance agents. Could they just use a call center, to do everything? Much like Progressive Car Insurance has done to P and C Agents. You save 20% not to use an agent and just use the call center.


They need health insurance agents right now to talk prospects into buying the coverage. But if everyone is required to have it, all they will need is what I call order takers, which a Call Center and website can do.


Will the Health Insurance Companies figure out away to bypass the agent and just use their own call center?

 

[pcbinsurance]

I think if things play out (Obamacare, PPACA, etc.) your scenario is a plausible one indeed.

 

[Yagents]

I guess State Farm/Allstate should close up shop......NOT
I guess medicare agents are doomed, they can call CMS........NOT
Term life is easy as pie, but only a small % use Select Quote.

The bill doesn't allow for discounts by going direct.....and if so, would only gobble up the 20% that do it themselves for everything else, but that is made up by the number of new prospects in the market.

Health insurance is by far the most complicated product out there, advice will be needed regardless. Just look at HHS now allowing for agents in the exchange, they figured out they can't do it without us.

 

[Cory]

Plausible yes, but I think most things are cyclical. They need us, they don't need us... in and out like pleats, neon clothes, high tops. Have stone-washed jeans come back yet?

 

[DS4]

Do I do my own taxes? No, too complex.
Of course, if I made no money like Rick.....

Health Insurance is also too complex.
Agents are needed under the current system.

 

[Ann H]

I agree with Cory that it will be cyclical. I figure they will need us for the first 3 years of the exchange, then the hammer will come down strong. Whether or not they take us back will depend on how few carriers are players (in and out of the exchange), and whether the carriers who terminated agents lose market share for their decision.

 

[GreenSky]

The exchange has been designed to fail. It's the last jump before single payer.

Rick

 

[pcbinsurance]

More and more doctors are going to go the DPC (Direct Primary Care) route. It's already happening.

 

[Yagents]

More and more doctors are going to go the DPC (Direct Primary Care) route. It's already happening.

Concierge care for the rich. Our system will become a 2 tiered system in short order when and if Obamacare hits full stride:
A Possible Price to Pay if Doctors Spurn Insurance - NYTimes.com

 

[AllenChicago]

I agree with Cory that it will be cyclical. I figure they will need us for the first 3 years of the exchange, then the hammer will come down strong. Whether or not they take us back will depend on how few carriers are players (in and out of the exchange), and whether the carriers who terminated agents lose market share for their decision.

I too agree with Cory. If you're eyeing the potential of Long-Term multi-year commission renewals, forget it if you're selling through any sort of program associated with the Federal or State government.

Best to sell non-exchange health insurance in partnership with carriers who have contracts that are similar to what we have today. There will always be a huge market for these policies... unless the ________s at HHS makes them illegal.
-ac