Really?

[midwestbroker]

Here is what I see happening in the KC market...a well versed MA market...

Carriers will go more to a captive sales force. Major IMO's will still offer MA plans, but the independent agent will be almost obsolete.

The independent agent will not be able to keep up with the marketing budget of the major carriers and their advertising will be over shadowed.

Of the 2 main players here:

Humana has a captive sales force of about 30 agents with 2 marketing offices.

Coventry has 3 agents but relies heavily on the broker side.

I am watching Coventry to see what they are going to do. Are the going to maintain with the broker world or are they going to take the captive model?

 

[retread]

Here is what I see happening in the KC market...a well versed MA market...

Carriers will go more to a captive sales force. Major IMO's will still offer MA plans, but the independent agent will be almost obsolete.

The independent agent will not be able to keep up with the marketing budget of the major carriers and their advertising will be over shadowed.

Of the 2 main players here:

Humana has a captive sales force of about 30 agents with 2 marketing offices.

Coventry has 3 agents but relies heavily on the broker side.

I am watching Coventry to see what they are going to do. Are the going to maintain with the broker world or are they going to take the captive model?

I think it will depend a large part on what the FMOs will do for them. Right now, they aren't doing squat. If they picked up some of the marketing costs, they will be seen by the carriers as an asset. If they continue doing little to nothing for their cut of the pie, they will be history.

I think, as the internet revolution continues, that eventually all seniors will be net savvy, and there will be little need for independent agents. Companies like Coventry who favor them will pick those they want and convert them to direct, thus eliminating the job description for FMOs.

This, of course, could change if FMOs got on the stick and did some sales support and not just recruit. Right now, they aren't really contributing to the reduction in their carrier's marketing expenses, even if they denounce this fact. When was the last time you got approved brochures you could use for advertising from an FMO? When was the last time your FMO spent some time giving you product training? When was the last time an FMO provided you quality leads?