Is fraudulent business jeopardizing the FE market?

[Jaymon]

Is the rampant fraudulent business jeopardizing agencies and carriers?

 

[JTS1]

Is the rampant fraudulent business jeopardizing agencies and carriers?

Always been fraudulent business, always will be.

Which particular fraudulent business are we talking about?

 

[Jaymon]

1) Churning.

2) Agents opening up checking accounts by having info such as Obama care clients, submitting applications using different mailing addresses and phone #'s.

 

[JTS1]

1) Churning.

2) Agents opening up checking accounts by having info such as Obama care clients, submitting applications using different mailing addresses and phone #'s.

Is it this rampant?

Are you suggesting recent carrier exits from FE were--in part--caused by this?

Are you suggesting the telesales boom, and the 25 YouTube kid gurus posting $40k month AP play in part?

I ask b/c this is what I've heard and then I've heard No and then I've heard Yes and then I realize this is what always happens all the time everywhere.

At least that what it seems like to me.

 

[WinoBlues]

I started regularly seeing my first "FE" policies in the early 90s. That stuff was pretty common. Maybe more so. Some annuity sales were just as bad.

Look who they are marketed to.

 

[jdeasy]

If one is of the belief that FE is jeopardized, I’m not one of those, then it’s because of the proliferation of FE telemarketers. Nothing else.

I do see those being in jeopardy.

And I’m saddened by that.

 

[DonP]

It’s funny I’m looking at all these you tube videos and every other one profiling 8-10 buys doing $25-$100 k every month . There’s was a tatted 28 yr old with FFL on a recent video . He claims to have done $700 and $940 k telesales fe the last 2 yrs . Of corse he’s recruiting like crazy . All I can say if these guys really are going those type business there replacing the crap out of each other . There’s simply not enough clients for all these guys to be doing this type vol . Now everyone’s pushing free leads . I saw Massey and boman have jumped in it with 1000 others . Hell your at 150% giving out 30-50% with free leads . Leads cost $5-$15 each . The imo is netting 50-60% after all chargebacks , leads , expenses . Incredible business model for all but the guy making 40% . For most that’s like a job at McDonald’s or Walmart net net

 

[WinoBlues]

It’s funny I’m looking at all these you tube videos and every other one profiling 8-10 buys doing $25-$100 k every month . There’s was a tatted 28 yr old with FFL on a recent video . He claims to have done $700 and $940 k telesales fe the last 2 yrs . Of corse he’s recruiting like crazy . All I can say if these guys really are going those type business there replacing the crap out of each other . There’s simply not enough clients for all these guys to be doing this type vol . Now everyone’s pushing free leads . I saw Massey and boman have jumped in it with 1000 others . Hell your at 150% giving out 30-50% with free leads . Leads cost $5-$15 each . The imo is netting 50-60% after all chargebacks , leads , expenses . Incredible business model for all but the guy making 40% . For most that’s like a job at McDonald’s or Walmart net net

Look who the IMOs are marketing to.

You have said it before about who the FE market is. Gullible and easily manipulated. New, get rich quick minded, agents are the same.

 

[jdeasy]

Those agents claiming to write that business but the companies have never heard of them.

There’s a disconnect there. Who’s getting sold?


I remember years ago when FEX was just getting off the ground. There was this agent wanting to join FEX that always claimed to be this hot shot producer/trainer.

He might have even joined FEX? I know he was on a few calls.

Anyway, he wanted higher contracts than the everyday agent signing up. Scott told him no problem, we just need proof of production and we can move up your contracts. He asked this agent who his number one company is. The agent told him.

Scott told him that was good. That was one of the FEX companies and he had a good relationship with them.

Scott asked that company about the agent and they had never heard of him. They had to search their records to find him.

Needless to say he didn’t have the production to warrant higher contracts.

If he had joined FEX he left shortly after that and showed up at another IMO.

There’s a 1000 stories like that. Most people just don’t verify.

As I understand the same agent is still all over the innerweb talking about his production when he was in the field.

The suckers that listen to that crap never ask for proof.

I asked a different recruiter once about that. He was spouting numbers that I knew to not be true. I asked him if anyone ever asked him to verify his numbers.

“Never”! Was his answer.

 

[Rearden]

Is the rampant fraudulent business jeopardizing agencies and carriers?

It definitely jeopardizes the agency that recruits them as all chargeback debt rolls up hill.

If anything, the carriers need better processes to monitor suspected fraud. It's amazing how little the carrier does to quickly flag potentially bad agents. I could drop a half-dozen actions that these folks do that few carriers ever monitor.