Why Do Carriers Want to Deal Direct?

[somarco]

My health biz (under 65) has pretty much been on autopilot since December. Get quite a few, more than in the past, that apply direct.

Not sure what that is all about.

Of course most of those either never complete the app or are denied for really stupid things like a heart attack, healthy but on 9 different meds or can only buy clothes in XXL sizes.

Checked app status earlier on Humana's site. In the last 60 days I have had 9 apply direct. Of those, 5 were never completed, 1 is waiting on additional info from the client and 3 were declined.

Can't figure out why carriers are jumping up and down about marketing direct.

Last time I had this discussion with a carrier they admitted they only make offers on about 30% of those who apply direct, about half are not taken and the balance fall off the books within 6 months.

Sounds like a stupid business model.

If my block worked like that I would have taken a job at McDonald's a long time ago.

 

[STIBROKER]

ok......I will take over your site......and BTW....thanks for the referral yesterday.....

 

[Norwayguy]

Its funny...Years ago I worked in the electrical wholesale business and phillips lighting wanted to revamp the way it did business....

Current Policy (Back Then)
Large job comes by you bid on it and get a special rebate to lower the cost based on that one project..It was a PIA

So a new exec comes in and runs the numbers and finds out they spend $2 million per year to run the dept for the special prices. Phillips promptly cuts the department and just lowers the wholesale price...

2 Months later the exec is fired and they reinstitute the policy...What the exec did not factor in was the massive amount of business they got based on the "Special pricing" but based on the PIA factor how few companies actually applied for and got the rebate....By just lowering the wholesale pricing every purchase got the lower pricing not just large jobs and cut into profit margins...So the Exec was proud to cut out a $2 million dollar per year expense without realizing what that expense did to the bottom line.

Hey does that story remind anyone about something similiar in the insurance industry?

 

[somarco]

You are welcome, Scott. Hope you can help her.

Peter, have you been spending some quality time with Charlie Sheen? You must think the companies can't get along without us.

 

[Norwayguy]

You are welcome, Scott. Hope you can help her.

Peter, have you been spending some quality time with Charlie Sheen? You must think the companies can't get along without us.

Somarco....I can't tell if I should take that as a compliment or not...I think Sheen is an ass.....But he manages to score some hot broads....If only I didn't have the wife I could certainly go for some of that....

Also I don't do health as my GI state has pretty much killed that market....I do Annuities and Life....I think the carriers can market direct to the consumers for say a term policy with the following conditions...The people they get will be some of the few that actively search out the info...I find that Life Insurance is sold meaning if an agent isn't asking for the business it mostly likely will never happen and if it does happen it will be a smaller case...The same can be said with annuities...I make most of my cases happen...even in the really simple area of CD replacement with a MYG Annuity in most cases if an agent doesn't sell it the client will sit pat on his CD.

 

[somarco]

When is the last time you had your eyes examined?

His "goddesses" look pretty trampy to me.

Now on the show he scores some hot chicks and his ex-wives aren't too shabby.

As for the problem with the wife, there are solutions for that.

 

[Norwayguy]

When is the last time you had your eyes examined?

His "goddesses" look pretty trampy to me.

Now on the show he scores some hot chicks and his ex-wives aren't too shabby.

As for the problem with the wife, there are solutions for that.

Sorry....All of my take on the Sheen drama has been via radio...I've gone by the commentators calling the woman hot... beside that I've taken this away from listening to Sheen


He is an F'in Rock start from Mars....

 

[HealthGuy]

I've been drinking a coctail of tigers blood and Jack Daniels the last week. I'm closing (winning) every damn sale.

 

[taterpeeler]

Winning!! Twitter

 

[somarco]

Over 2 million followers.

Now if he could only get each of them to send him a buck a week he would never have to work again and we can get back to real news on TV.

Like waiting on Obummer to tell us how good life is now that the recession is over.