Study says exchanges will increase competition among insurers

Posted on: Thursday, July 21, 2011

The year 2014 is a significant one for health insurance companies and their agents, as, individuals will be required to purchase coverage. But some agents may be wondering how this requirement will affect the provider they work for.

PwC U.S Health Research Institute may help clarify that, as the insurance advisory group commissioned a survey of 1,000 consumers and 153 health insurance executives recently.

For example, PwC found that once states set up exchanges, or an insurance marketplace, insurers will compete with one another to secure clients' business. There will likely be a huge customer base to market to, as the Congressional Budget Office estimates as many as 12 million consumers will buy coverage through the exchanges in 2014 and as many as 28 million by 2019.

However, not all insurance companies will participate in the marketplace. After surveying executives, approximately 17 percent said their company will likely not enter the exchanges, opting instead to pursue insurance leads through alternative means.

While the program may be several years away from going into effect, agents may want to talk to their supervisors to determine whether or not their company will be taking part, as it could affect the insurance prospecting process.

Posted In: Insurance News, Health Insurance

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