Assurant has announced they will be cancelling commissions on individual medical products:
“The Milwaukee, Wis.-headquartered insurance carrier Assurant Health will no longer pay commissions on new business in certain markets of the United States, a move the carrier calls a sales approach, but some benefit advisers feel is a slight.
Assurant Health has cut commissions on new business in Florida, Nevada, Georgia, Indiana, Michigan, Pennsylvania and Texas. A spokesperson for the insurer says the changes impact individual major medical products, but not the supplemental, short-term medical or small group products Assurant Health offers.”
This is not a shock, considering that their products are already way overpriced in many markets. However the broker fee (2-5%, depending on the market) is a small price to pay. Consumers need educated and impartial guidance and 70%+ of consumers use a broker.
But will they be willing to pay $200-$500 a year for the broker of their choice? That remains to be seen.