“Medigap Offers Agents Years Of Strong Commissions,” by Cyril Tuohy, InsuranceNewsNet
“The Medigap market is large – about 14 million Medigap policies were in-force last year – according to CSG Actuarial. As Medigap enrollment continues to grow at rates exceeding overall Medicare enrollment growth over the next decade, that will mean more opportunity for insurers, agent and marketing organizations, CSG Actuarial’s projections show. … LTCi agent Nicole Gurley said about three or four years ago she began to notice ‘an exodus or refocus’ on the Medigap market by many LTCi brokers. It wasn’t much different from healthcare insurance brokers moving to Medicare supplement sales, said Gurley, owner of Gurley LTCi in Cave Creek, Ariz., north of Phoenix. ‘Producers go where they can make a living.’ Many factors have encouraged LTCi producers to hunt for leads elsewhere as millions age, Gurley said. Fewer companies selling traditional LTCi, tighter underwriting standards, premium increases, the move to asset-based products, which have limited renewal commission activity, have conspired to make LTCi an expensive and difficult sale, she said.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Passion drives LTCI producers who stick it out, but passion alone doesn’t pay the bills.