Saturday, June 11, 2011

I sell health insurance - is it time to look for a new job?

Hello, From my carrier experience, most carriers have their rates set up with a target loss ratio of 70%. With the bills that have passed the house and senate, they both look like the government is forcing an 85% target loss ratio. Which means that they need to cut 15%. Since I make 5% on what I sell, it sure looks like they will cut out brokers/agents. Any thoughts?
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Since the senate mandating that everyone BUY health insurance, it's probably the worst time for you to get out of it. And, the obvious way to get the pure loss ratio from 85% to 70%, is to raise rates.
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