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from Let’s Talk Cost 2012
in What’s Your Idea?
April 30, 2012
Why do you need to pay agents over 20% commission for selling a policy? And I heard you pay for their advertising as well. Why?
Bruce Allen commented on May 17, 2012
Hi Martin –Thanks for the questions.
Currently, BCBSNC sells directly, on the web, and via agents. Having a wide sales network helps us to keep costs low because we can reach more customers.
We’re able utilize these three outlets while paying 85 cents of every premium dollar on our customers’ medical care. If we were to able to only sell directly, we might sell less, and our prices might go up because of that.
Again, I appreciate your questions. I hope you find this information helpful.