Long hours, low pay and remaining uncertainty led more than 80% of producers to tell consulting firm Oliver Wyman selling health insurance plans on the public exchange wasn’t worth it.
Insurance Business talked to two producers considering sitting out on next year’s open enrollment period, instead concentrating on other areas of their business.
However, two readers pointed out that for some producers, Obamacare has actually been a blessing. For Mike in Illinois, health reform has driven in new customers now purchasing other policies from the agency. He wrote:
I'm helping people I never would have been able to help 3 months ago and the cross-sell of my product portfolio is through the roof. I'm averaging about 4 additional policies on top of the health sale.
The same went for Lee, who commented that “any reason to get a new or existing customer in front of you is a good thing.” He wrote:
Did you use this opportunity to complete a "cpr"...customer protection review? …Ask me how much I've earned incrementally over last three months as a result of meeting new people and helping them identify other financial needs beyond Obamcare.
Mike and Lee’s sentiments echo the conclusions of Oliver Wyman analysts Nick D’Addezio and Dan Lyons.
“Brokers aren’t bailing out,” they said of their recent study. “They’re hopeful about making money from advisory fees and cross-selling ancillary products.”
Brokers participating in
the study indicated that increased sales in life insurance, dental insurance and disability insurance will help sustain them in addition to individual sales of exchange plans. Of those respondents, 43% of brokers said they plan to sell “a lot more” life insurance, while 38% indicated the same for dental and 34% for disability.
Another 19% of brokers said they are planning to sell “a lot more” property and casualty insurance in an effort to diversify their offerings.
Thanks to Mike, Lee and all our readers who commented this week!
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