CIGNA MedSupp Experience
- Thread starter MedSuppPro
- Start date
What are your thoughts on the contract clause for withholding renewals if you roll business?
I try to diversify what companies I place my clients with so I am not really concerned with that too much.
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very good non-answer. You should go into politics...
- 462
Same clause was in the old UTA & Loyal American contracts. Don't roll your business in large quantity; move one or two clients here and there when it's in the best interest of your client and you won't have a problem.
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What if they have a huge rate increase?
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What if there were no hypothetical questions? What if they went into receivership like Shenandoah Life? What if they went into receivership like National States? What if they shut down like Universal Healthcare? What if you had to place your contract through Amerilife? What if Obama shut down Medicare? What if you ceased living your life in fear?
Simple answer is don't put all your eggs in one basket. And also don't make a habit of rolling your business. Just a bad practice altogether. When they take a rate increase and a client has a problem, let them call you and help them, but proactively rolling your clients because a carrier took a big rate bump is actually not in your favor for the long term.
Also, don't write Plan F. You're shooting yourself in the foot with that one. Write Plan G. United of Omaha took an 18% bump here in Texas on F last hike. 0% on G.
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Even better! Now you don't have to live in fear Scott.
I guess we have a philosophical difference. It's been my experience (at least in the areas I work) that many times one carrier may be the least expensive plan. For example, here in Georgia, New Era has been the least expensive for the T65 crowd for about 3 years now. So they get just about 100% of that portion of my business. This means if you are doing what's in the best interest of the client, it's hard to not put all your eggs in one basket. Or at least a large portion of your eggs in one basket. I guess my question to you would be,
Do you recommend not selling the lowest cost plan to your clients with a carrier who has a good rate history?
Secondly, I believe in being proactive with my clients at renewal time. I reach out to my clients to make them aware of their new premium AND let them know if there is anything less expensive. Sometimes this results in moving them to another carrier. And other times it doesn't. I feel by being proactive my clients understand I have their best interest at heart. What this has done for me personally is created an understanding that anytime they have questions or someone is trying to replace my business, they contact me prior to doing anything. Almost certainly because I do more than any other agent with which they've ever worked. Not to mention every time a friend or family member starts talking about the subject matter they refer them to me because they know I want to do what's best for them and will keep them informed.
So, I don't agree that making a habit of moving clients away from carriers who have a big rate jump isn't in the clients best interest in the long term. Wouldn't you rather be the person informing them of the savings as opposed to some other agent? I can't tell you how many clients I have gained over the years whose agent didn't inform them of potential savings.
How would you feel if your P&C agent reached out to you if you had a big rate increase on your homeowner's insurance? My homeowner's policy had an 80% rate increase this past year. I had no claims. Have never had any claims. I didn't hesitate switching to another carrier. Unfortunately I had to call my agent and let him know to find me another carrier. Sure would have been nice if he were proactive about it.
As for selling Plan G over Plan F, I agree with you. It works great in my area with New Era. There's a $22-$28 monthly premium difference between the two plans for the T65 crowd in Georgia and the rate increases on Plan G have been smaller than with Plan F.
