The Medicare Supplement
landscape has changed significantly over the last 10 years, bringing with it new opportunities as well as new challenges. With new carriers entering the market at a staggering rate, it has become increasingly difficult for agents to properly manage their blocks of business. Attempting to license with each new carrier and then keep track of their competitive advantage has also proven to be an unyielding task.
Often, too many options is just as discouraging as having too few of options. The below trends have helped many of our agents increase their sales by concentrating their efforts.
As blocks of business mature they tend to take lower rate adjustments compared to those of carriers that have recently entered into the marketplace. Because of this, established carriers frequently resurface with a very competitive rate. Ineffectively communicated by most carriers, this competitive edge is often times overlooked by most insurance agents.
Pricing concentration (age):
Many carriers have started pricing their products to attract clients between the ages of 66 - 70. This helps improve risk evaluation and allows for better loss ratio management. Because of this pricing strategy, it is important that you do your rate comparisons at every age.
Medicare Select offers all of the great benefits of a traditional Medicare Supplement but costs approximately 15 percent - 20 percent less. Medicare Select allows your clients to use their doctor of choice. If hospital care is needed, your clients may visit any of the hospitals that are affiliated with their Medicare Select insurance policy, anywhere in the country.