- 31,270
I wondered this too, they're still very competitive.
40% rate increase in IL
- Thread starter SamIam
- Start date
That's the million dollar question. Why is Chubb/ACE pulling ACE med sup in favor of a different subsidiary (INA).
Carriers rotate subsidiaries in and out of the market to churn old business and "replace" it with new business.
Old business block goes into a death spiral with virtually unending double digit rate increases.
New business applicants get the benefit of lower rates . . . at least until the claim lag catches up . . .
This is a very profitable game plan for the carrier, but the policyholders pay the price. Healthy people leave, sick people stay. Some of the sick people will rotate to MA, at least for a while.
Many seasoned agents won't play along and avoid placing business with carriers that offer a carousel of rotating subs. They favor stability over low entry rates that skyrocket in a few years.
Chubb didn't invent this game, they just borrowed the playbook from several larger carriers.
Old business block goes into a death spiral with virtually unending double digit rate increases.
New business applicants get the benefit of lower rates . . . at least until the claim lag catches up . . .
This is a very profitable game plan for the carrier, but the policyholders pay the price. Healthy people leave, sick people stay. Some of the sick people will rotate to MA, at least for a while.
Many seasoned agents won't play along and avoid placing business with carriers that offer a carousel of rotating subs. They favor stability over low entry rates that skyrocket in a few years.
Chubb didn't invent this game, they just borrowed the playbook from several larger carriers.
