A New Low For ProspectZone?

[bill3173]

They (and other carriers as well) would be better off to generate leads in house and turn them over to agents rather than farming it out to vendors.

Given your years of experience, do you think that it would be worth it to them to generate the leads?

The apps can be placed anywhere. If I had any empirical data to stand on, I would use my silver tongue to make a hearty suggestion to the carriers that I sell.

I know that carrier generated leads thru telemarketing are exquisite. I was fortunate enough to be on the receiving end of a small pile of these with one carrier in a test program. I just happened to be the right place and time and it was like a dream.

 

[somarco]

Every major carrier does direct to consumer advertising that generates inbound calls. There are problems with this, including the fact that the phones are only answered during normal business hours.

When calls are answered, or returned, the CSR's have limited knowledge, even about their own plans, and are nothing more than order takers. There is no attempt to find out what is needed, no attempt to inform the consumer on the dangers of some plans (such as those that do not cover Rx) and no attempt to pre-screen the individual for ratable or declinable conditions.

I get referrals from carriers from time to time and do my best to place that business with the referring carrier, but it is not always possible. Frankly, most of the time these people are uninsurable.

Carrier written business usually rolls off the books in less than 6 months. They have a higher not-taken rate and (generally) more complaints than agent driven business.

Carriers simply do not know how to take care of policyholders on the front end or back end. They would make more money by passing those leads on to qualified agents than trying to keep them as house accounts.

 

[CHUMPS FROM OXFORD]

Anthem has ratcheted up TV advertising in Ohio this month. Maybe in other states as well. Of course, the phone number goes direct to their sales team.

 

[bill3173]

Every major carrier does direct to consumer advertising that generates inbound calls. There are problems with this, including the fact that the phones are only answered during normal business hours.

When calls are answered, or returned, the CSR's have limited knowledge, even about their own plans, and are nothing more than order takers. There is no attempt to find out what is needed, no attempt to inform the consumer on the dangers of some plans (such as those that do not cover Rx) and no attempt to pre-screen the individual for ratable or declinable conditions.

I get referrals from carriers from time to time and do my best to place that business with the referring carrier, but it is not always possible. Frankly, most of the time these people are uninsurable.

Carrier written business usually rolls off the books in less than 6 months. They have a higher not-taken rate and (generally) more complaints than agent driven business.

Carriers simply do not know how to take care of policyholders on the front end or back end. They would make more money by passing those leads on to qualified agents than trying to keep them as house accounts.

I can tell by your and Chumps response, that I left part of my question off. I'm well aware of the enormous amount of $$ carrier's spend to generate new business.

I just wonder why they don't pass on more of their leads to their outside agents, and based on what you just said, it really doesn't seem to add up.

That special program that I participated in was like gold, and according to you, if they kept these leads in house, they would have done very little with them.

 

[Crabcake Johnny]

Lately Assurant has ads all over the net - mainly news sites. I think they'll trying to brand themselves for the impending changes.

 

[somarco]

Bill, carriers aren't that bright. The only one where it might make sense to go direct is Blue. The others don't have the "pull" that Blue does to make it work.

 

[TXINSURANCE]

Lately Assurant has ads all over the net - mainly news sites. I think they'll trying to brand themselves for the impending changes.

You think Assurant will survive with GI and only a $250 participation fine for not carrying insurance?

 

[Crabcake Johnny]

Assurant GI - male age 25: $985. That's CoredMed of course with a $7,500 OOP.

 

[dgoldenz]

Assurant GI - male age 25: $985. That's CoredMed of course with a $7,500 OOP.

That sounds like a great deal. Sign me up.

 

[Ken Westphal]

I was at HumanaOne for several years so I have some insight on this.

The main reason carriers to do not provide higher volume or quality of leads to agents and instead write it themselves is because what they pay inside agents to sell is so much less than the commission payouts to agents.

Average lifetime commissions to an agent for a policy range from $750-$900 depending on premium, persistency, and the commission level an agent is at.

The average cost per sale for an inside sales person is just over $120-$150.

That is not to say they do not value agent sales, just that when they spend $180-$220 in marketing expense to get a sale, they would lose too much margin to then also pay commissions out.

You are right though the business does not stay on the books as well when it goes direct, but that is when bean counting comes in.

I have always found the business to be very cyclical in that one year it is all about member growth and then leads and other benefits for agents come popping out, then it moves to a year when profit percent is the most important driver, which means bye-bye leads and extra incentives for agents.

Just my two cents