Carriers Using Private Exchanges to Sell Directly to Small ERs?

[Welshm9]

Hi,

Do you think any major EB carriers will ever have much success using either private exchanges or their own websites to sell small group EB products directly to employers?

IYO, will companies like Bloom or Liazon (who are trying to do this I believe...please correct me if I'm wrong) ultimately be successful?

Would love to hear the opinions of the producers and others on the board. Thanks!

 

[somarco]

Re: Carriers Using Private Exchanges to Sell Directly to Small ER

In a word, no.

Consumers, including most business owners and HR folks, are not versed in benefits to make the best decision.

I know benefits, they don't.

They know widgets, I don't.

 

[PattiG]

Re: Carriers Using Private Exchanges to Sell Directly to Small ER

Carriers will do anything if it means more money in their pocketbooks. Eliminating agents is something they would do in an instant if they could find another way to reach cusootmers

 

[ABC]

Re: Carriers Using Private Exchanges to Sell Directly to Small ER

The private exchanges will still need brokers or they will face adverse selection. The exchange might not offer the best deal.

Bloom was recently bought by Wellpoint. Wellpoint is very broker friendly and plan on launching the new platform in my state in 2012.

Aon is developing their own exchange. This will be interesting because AON is a publicly traded Brokerage.

UHC has already started with Alsavers on the AMS platform.

The national carrier will still use brokers but there will be even higher production requirements. Small shops will have a hard time competing with larger agencies. Independent group brokers are already fading a way.

What will be flat out funny is if CVS or Wallgreens develops their own exchange. Talk about adverse selection. No way they will be able to operate a plan in the black.