Insurance agents compete for business with other agents. Insurance companies usually honor proposal requests on a first come, first served basis. Below is a redacted email we received yesterday which we believe may illustrate how an agent will and can “lock up” the market before his competitors can do so. Note the times of the emails:
From: Insurance Agent Jones
Sent: Monday, August 20, 2012 03:32 PM
To: ‘aetna’ <email@example.com>; ‘BCBS’ <firstname.lastname@example.org>; ‘BMA’ <email@example.com>; ‘Boon Chapman’ <firstname.lastname@example.org>; ‘Caprock Health’ <email@example.com>; ‘EBS’ <firstname.lastname@example.org>; ‘GPA’ <email@example.com>; ‘Great West’ <firstname.lastname@example.org>; ‘Healthsmart’ <email@example.com>; ‘Humana’ <firstname.lastname@example.org>; Jennifer L Henry; ‘Providence Admin’ <email@example.com>; ‘trustmark’ <firstname.lastname@example.org>; ‘UMR’ <email@example.com>
Subject: FW: Inurance Proposals Packet
Please let me know if you will offer a proposal on this group.
Insurance Agent Jones
From: HR Director of ABC Company
Sent: Thursday, August 16, 2012 2:38 PM
To: Insurance Agent Jones
Subject: Inurance Proposals Packet
I have attached the following information for the Insurance Proposal for our facility. Please contact me if there is anything else needed.
Happy HR Director of ABC Company
Editor’s Note: Agents who successfully lock up the market in a competitive bid situation effectively controls the bid process. Prior to submitting his bids, the agent knows the contents of each bid and can play favorites if so inclined. “Hey buddy, your competitor, XYZ Insurance Company is 5% lower than your quote, you need to drop your rates 10% and add another $20,000 in commissions.”
From an insurance broker:
What is telling about this are the email addresses used. I can tell you some are addressed to people who no longer work for the carrier contacted. One in particular left over a year ago. The other email addresses are general box email addresses anyone can get off the internet. This agent is shotgunning the market to lock it up.
From Harvey the Rabbit:
It’s not 54 minutes. It’s more like 4 days and 54 minutes. But I get the point.