Genworth Gets 10% Rate Increase Approved

[ltcadviser]

So, I saw a blurb that Genworth got Georgia to approve a 10% hike on Classic Select and Privileged Choice policies sold between 2003-2012. I have hundreds of Georgia Genworth policies affected. I suppose 10% is a blessing? Probably low enough that I won't have to do a significant amount of service work? I would imagine that most policyholders will not blink over 10%? Thoughts?

 

[Arthur Rudnick]

Thoughts?

You have 2 options:
1) Be proactive and send a letter to your Genworth clients hit with an increase with an explanation as to why there's an increase and (more importantly) that the reasons they purchased a policy in the first place are the same reasons they should keep it in place today. Also give them their options of sucking it up and keeping the same coverage, or decreasing some benefits in order to keep their premium about the same. (Give them Genworth's phone # and let them deal directly with Genworth for that)
or,
2) Do nothing and wait for the phone calls. In any case, you'll be the bad guy because they will be under the impression that you told them premiums would never increase. (You didn't, but that's what they'll claim and, do you think they will remember a conversation they had with you for 30 minutes, 5-10 years ago?)

You have a high, net-worth client base and realistically, a 10% increase will not change their lifestyles. The problem is with your policyholders who you sold in 2011 & 2012. They'll be pissed to see an increase within 2-3 years of purchase.

How did you handle the Hancock increases that were SUBSTANTIALLY higher than 10%?

 

[ltcadviser]

Thoughts?

You have 2 options:
1) Be proactive and send a letter to your Genworth clients hit with an increase with an explanation as to why there's an increase and (more importantly) that the reasons they purchased a policy in the first place are the same reasons they should keep it in place today. Also give them their options of sucking it up and keeping the same coverage, or decreasing some benefits in order to keep their premium about the same. (Give them Genworth's phone # and let them deal directly with Genworth for that)
or,
2) Do nothing and wait for the phone calls. In any case, you'll be the bad guy because they will be under the impression that you told them premiums would never increase. (You didn't, but that's what they'll claim and, do you think they will remember a conversation they had with you for 30 minutes, 5-10 years ago?)

You have a high, net-worth client base and realistically, a 10% increase will not change their lifestyles. The problem is with your policyholders who you sold in 2011 & 2012. They'll be pissed to see an increase within 2-3 years of purchase.

How did you handle the Hancock increases that were SUBSTANTIALLY higher than 10%?

I always discuss rate increase possibilities with my clients, so I don't have to worry about them being upset with me.

I never really had to deal with the John Hancock increases. I was only a captive with John Hancock from 1998-2002. I really haven't written John Hancock policies in 12 years as JH stopped being competitively priced eons ago, so fortunately I didn't have to deal with THAT nightmare. The Atlanta John Hancock agency owned my JH book of business when I left in 2002, so I suppose the agency received the phone calls for those older policies.

Never really wrote JH since I became independent as JH never really was competitive compared with Genworth, Mass, et al. Phew.

I do get a ton of calls from clients who bought Hancock policies with other agents and they are pissed at the 70-90% increases. They call me up wanting to replace their coverage. I just tell them they are still sitting on gold, pay the 70%.

I really can't imagine anyone truly caring about 10%, but it will be a good opportunity to catch up with clients and solidify their reasons for owning their policies.