Individual Book Value

Broker22

Expert
53
I currently have an individual book of business. about 125 policies. All with a well known color co. long term people. now most are on exchange but are well serviced (all hhs requirements in etc...) I get about 3k per month ( isn't that sad?). I am so tired of the aca headaches and BS. How much do you think the value of this small book is worth. If the company or another agent just takes it and gives me a lump sum ? Of course a contract and covenant not to compete..no worry as I would like to be totally out of health , Any thoughts? I am thinking the carrier may take it . Any ideas ?
 
Just my opinion but I don't think ACA business has much value these days considering coverage terminates 12/31 and you start over. My wag, $10k.
 
Thanks for the opinion. Are you saying all policies have to be redone every year?. I thought they could renew or the agent could just adjust income etc...Also what do you think about the carrier taking them and giving me a lump sum...?
 
Very few policies will simply roll over. Too many changes coming. Early indications renewal rates will be 20%+.

Some carriers talking about 30%+ renewals.

Exchange plans even more volatile as carriers vie for the 2nd lowest cost silver.

Or try to avoid it ..........

Platinum plans will be all but gone in 2016. The few that are left won't be worth having.

Assurant is pulling out. Others may follow.

Carriers have no interest in buying agent business especially when they can wait on the agent to quit and just take it over at $0 cost.

Others may have a different opinion.
 
30%??? Maybe its geographic but just about all of my clients renewed. Then again most of my clients been with me forever. But even my new ones renewed. That being said until we know whats going on with this law you won't get much for it.
 
30%??? Maybe its geographic but just about all of my clients renewed. Then again most of my clients been with me forever. But even my new ones renewed. That being said until we know whats going on with this law you won't get much for it.

I don't think we'll be enjoying such a high auto-renewal percentage for 2016 if BCBSIL & LOLH premiums continue the trend of going in opposite directions.

Agree with Somarco regarding the unprecedented volatility that lies ahead. Colored company ACA books of business are worth just a fraction of what a comparable pre-2010 colored book would be worth.
 
You're all missing a very important factor:

1. There is no longer a change of agent form to fill out. The AOR must occur on HC.gov, and in order to become the AOR, you must re-do the entire application as an "active renewal", and put in your agent info. HC.gov owns the AOR, not the carrier.

2. Also, if your second lowest cost silver stays the same or goes lower, the client is better off doing a "passive renewal", otherwise an active renewal would cause the subsidy to go DOWN. In AZ, that's exactly what happened in 2015.

I wouldn't pay you more than the cost of an exclusive lead ($10 at most = $1250). You would be better off just not servicing the client and rolling the dice that your agent info sticks on the auto or active renewals. I would bet it would be more income than selling your book (or what I consider, a list of hot leads)

It would be nice to know what state you're in.
 
Very few policies will simply roll over. Too many changes coming. Early indications renewal rates will be 20%+.

Some carriers talking about 30%+ renewals.

Exchange plans even more volatile as carriers vie for the 2nd lowest cost silver.

Or try to avoid it ..........

Platinum plans will be all but gone in 2016. The few that are left won't be worth having.

Assurant is pulling out. Others may follow.

Carriers have no interest in buying agent business especially when they can wait on the agent to quit and just take it over at $0 cost.

Others may have a different opinion.

You make it sound like Obamacare isn't working. :laugh:
 
This article supports my comment. No such thing as "value" in an IFP book of biz.

PPACA is always right | LifeHealthPro





Could I help? I was certain I could. All I had to do was contact customer service and get the documents necessary for a change in agent representation, have the clients fill them out and forward them to the company.

That might be good enough for the real world, but not in the realm of PPACA.

First, I was educated by the company; then, by HHS.

Insureds, once they have appointed an agent, cannot revoke that appointment unless they change their plan, and they can only change their plan at open enrollment, or if they qualify for a special enrollment period. The insurance company cannot help them; neither can I, until the next open enrollment. And while the consumers wait and stew, the dolt who dumped a bum plan on them will continue to collect his commission.
 
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