As the Medicare industry gears up for AEP (Annual Enrollment Period) season, there’s a significant increase in marketing and educational activity. No doubt this time of year your inbox is full of invitations to webinars and trainings along with fresh marketing buzz on the latest and greatest offerings from carriers.
Several carriers have already launched new Hospital Indemnity products this year that are focused on the Senior market and ready to make a splash during AEP.
Why?
Because the Senior Market is growing. If you’re reading this, you probably already know that. The growth in the total Medicare market poses the opportunity for carriers to expand in the Senior Supplement Health market.
It’s easy
For seniors, it’s easy to understand indemnity benefits. “$300 per day that you’re hospitalized, up to 7 days per hospital stay.”
For agents, it’s easy to explain and sell. Hospital Indemnity Plans fit nicely alongside Medicare Advantage plans and help to fill coverage gaps. For carriers, it’s easy to administer and easy to manage the product year after year:
Simple (or no!) underwriting, straightforward claims processing, and few annual compliance reporting requirements.
It makes cents
For seniors, premiums are affordable and coverage can be customized to fit their specific needs. Average premiums are less than $50 a month. For agents, improved customer loyalty with multiple products and attractive commission schedules are a no-brainer. Successful agents (marketing organizations and carriers, too!) know and value the importance of cross-selling.
For carriers, low minimum loss ratio requirements and favorable experience seen across the market lead to positive impacts on the bottom line. Even better, ample opportunity exists in the (uncrowded) Senior HIP market for new products. Telos Actuarial projected the Senior HIP market size under two growth scenarios over the next 10 years.