Great Western question on commission

[Todd King]

The last I heard AIG wasn't in concrete yet. Still figuring out their next move. Could be anything from a complete re-pricing to pulling the product from brokers. Others may have more accurate and up to date info though. But it's pretty well known that they are not happy with the current situation.

I was told from the beginning that they didn't expect for agents to only put unhealthy applicants with them. Which tells us that no actual agents were involved in the design of the product.

"I was told from the beginning that they didn't expect for agents to only put unhealthy applicants with them."

Now that's just plain stupidity with AIG if they thought any different. It's a GI policy sold by independent agents for God's sake!

 

[goillini52]

When's the aig increase 9/15?

https://d14mz4iq8amhw3.cloudfront.net/images/email/10405_AIG – Product Bulletin.pdf

I couldn't find the new rate cards on the website.

 

[Iwillpay]

Not to my knowdge. Again, another example of a company getting 80% of the process right but the 20% they miss kills the company.

Got an email yesterday of radical changes taking place on October 1. Medico taking over.
Should be easier to work with from that date.

 

[Baseball7]

Would be nice if the rates were a little bit more competitive.

 

[DayTimer]

"I was told from the beginning that they didn't expect for agents to only put unhealthy applicants with them."

Now that's just plain stupidity with AIG if they thought any different. It's a GI policy sold by independent agents for God's sake!

There is a guy working Allentown who only sells this product. He goes door to door all day everyday and apparently sells enough to make a living. I have come across his policies a good number of ties, and I have replaced it in many cases because I can usually still get the client more coverage per $premium, even years later. The ones I haven't replaced are those clients who aree unhealthy and only qualified for GI.

 

[Baseball7]

Your finding AIG GI 3+ yrs old?

 

[VolAgent]

"I was told from the beginning that they didn't expect for agents to only put unhealthy applicants with them."

Now that's just plain stupidity with AIG if they thought any different. It's a GI policy sold by independent agents for God's sake!

Why am I not surprised? Same thing happened to Vantis and Gerber.

Surprisingly a lot of smart people do work at insurance companies, it just doesn't often feel like it. This is all on sales and marketing, either they truly are idiots, they never thought to tell the actuaries or deliberating hid it from the actuaries. My money would be on the later two.

 

[Baseball7]

With W&S buying Gerber Life i'm sure will see some changes in the next 12 months just like what happened to Great western.

 

[VolAgent]

With W&S buying Gerber Life i'm sure will see some changes in the next 12 months just like what happened to Great western.

Gerber repriced not all that long ago. I suspect they now where they need to be based upon the risks they are getting.

 

[Life Hawk]

Would be nice if the rates were a little bit more competitive.

... and the policy looked a little bit more than junk mail...

Why am I not surprised? Same thing happened to Vantis and Gerber.

Surprisingly a lot of smart people do work at insurance companies, it just doesn't often feel like it. This is all on sales and marketing, either they truly are idiots, they never thought to tell the actuaries or deliberating hid it from the actuaries. My money would be on the later two.

My guess is that marketing is more involved then perhaps should be... they create a product line that covers anything to the healthiest... they think they can cover an agent's wish list... but agents (most) aren't as dumb as they look... best commissions then best price are always part of landscape...

When I picked up Great Western, I had a conversation with a marketer that ended something like this... we will use it while it is available, then someone else will try it.