Me thinks AllState is pulling out of the Supp Market

[Medicare bro]

 

[rmhaire]

Check your email. They just pulled out in all states.

 

[Evan]

Dear valued agent, We want to share several important updates regarding the future of the Medicare Supplement product line. These changes reflect our ongoing efforts to manage the business responsibly. We are also making these changes as part of a broader shift to return to the foundation that built our success – offering affordable, flexible coverage for individuals and families through our core products.

1. Transition to paper applications only Effective immediately, we will only accept paper applications for all new Medicare Supplement business, for all states. Online application submission portals have been suspended for new business only. There is no change to the servicing of existing Medicare Supplement policies. 2. Suspension of advance commission payments Also, effective immediately, we will suspend all advance payments on new Medicare Supplement business. Commissions will continue to be paid on an as-earned basis in accordance with your existing agreement. There is no impact to commissions on existing in-force business. 3. Withdrawing just our Medicare Supplement plans We will be filing formal notice with each state to withdraw from the Medicare Supplement market. This process will take place over the coming weeks and will follow all required state-specific timelines. While notice periods vary by state, we remain committed to complying with all regulatory requirements and will accept new paper applications until each notice period ends. We will share state-by-state submission deadlines so you can plan accordingly. This change does not affect existing policyholders. Their coverage and service will continue uninterrupted.

 

[sshafran]

The dust has been bitten.

 

[GoPokes]

The rug has been pulled.

I should have seen the writing on the wall last week. I was overly optimistic.

Is this the start of a trend?

 

[sshafran]

The rug has been pulled.

I should have seen the writing on the wall last week. I was overly optimistic.

Is this the start of a trend?

It feels like we're mid-trend at this point.

Fire sale - sell what you can, while you can.

 

[rmhaire]

The rug has been pulled.

I should have seen the writing on the wall last week. I was overly optimistic.

Is this the start of a trend?

Maybe a small trend if that much.

The list of carriers that have pulled out reads like a Sears catalog. But with AllState it's more of a corporate mindset. P&C plus Medicare hardly ever works.

But we do have one on here that's always trying to jump out of tall buildings. Pretty sure he'll be along soon to pontificate.

 

[BALDELMO]

Their Loss Ratio on business written in last 3 years was 104.5%
Sort of self explanatory.

 

[Special Agent]

It feels like we're mid-trend at this point.

Fire sale - sell what you can, while you can.

A few years from now agent will be like " what will it be today UHC or BCBS or would you like to try our special today-refried shells of Omaha Mutual State United World Insurance Company of Great America Again?"

 

[Medicare bro]

The rug has been pulled.

I should have seen the writing on the wall last week. I was overly optimistic.

Is this the start of a trend?

When Mom and Pop Supp companies pull out, it's not news worthy. Aside from Aflac pulling out several years ago, All-State pulling out could create a ripple effect. I'm sure everything will be OK, and supplements will last forever.

From talking with my upline, they said the supplement market has had the same rates for past 15 years. Aside from maybe $20 higher for a plan N or G. Carriers have never moved the needle on the starting premium. From what they are saying, Supp carriers will need to move the starting premium up at least $50 for all carriers.