Insurance Company Financial Stability Poll

[ccbaxter]

Precisely. One of the interesting things about these forums is that there are so many different people serving different markets and no one size fits all advice works.

For example, the "what's the cheapest e&o for new agents?" "NAPA." For someone just starting out in FE (and may well be done within a year), that $370 dollar cookie cutter policy will probably be fine.

On the other hand, if you're licensed in 50 states doing LTC over the internet, you would probably be wise to work with a really good broker.

I'm just starting out--although I used to be an agent--and I've decided to tweek my business plan and go cookie cutter. For me, it makes sense because I'm doing this part time/retirement and I don't plan on building an agency/down line or even doing enough volume to justify the extra expense with a broker.

And the insolvency related risk is minimal anyway between the regulators, reserve requirements, and the guarantee funds. I would be comfortable writing a B carrier like Equitable. On the other hand, I wouldn't be comfortable placing an LTC policy with a C carrier. If things go bad, the client may come out whole in the end but life's too short to be hand-holding all your clients if their insurance company is all over the news.

One of the other things I like about the Nailba/IA plan is that it includes data breach protection. Most of the cookie cutter plans don't.

 

[MichaelBurton]

Thanks, again, to both of you - CC and Skag. Very interesting to follow your dialogue.

 

[Meera Anand]

A brief commentary on the options, if this helps you select an option:

1) "Acute Concern" might be someone who is aware of and disturbed by regulatory/reserving trends in the industry. Probably relies upon Ratings Agencies for guidance, even though doesn't trust them; but, thinks, "what else do we have?" In general, feels trouble is afoot but just not exactly sure what to do about it.

2) "Chief Concern" might be someone who who thinks it's the first duty of every agent AND thinks that times are more uncertain now than they have been in past. And (like #3 below) limits carrier selection heavily and relies deeply on ratings agencies. Recommends highest rated carriers even if they are much more expensive than other carriers.

3) "Important Concern" might be someone who, like #2, thinks its the most important concern of writing any policy, considers ratings reports with every purchase, and probably limits carriers to those that are mutual and A+ or higher.

4) "Moderate Concern" might be someone who knows "hey, anything can happen," but doesn't think there are any unique problems afoot, and sticks to writing "A-rated" companies or better.

5) "Not Too Concerned" might be someone who thinks that, even if the sh!t hits the fan, the industry and regulatory bodies will "clean up the mess, just like they always have."

nice information thanking you

 

[MichaelBurton]

nice information thanking you

Sure thing! And I think we both owe our thanks to those in the thread who contributed their thoughts.