Underwriting and Low Rate Increases = Persistency
CSI & CSI Life operate under a different business model than most carriers. Let’s look at what makes CSI Life unique, and why your clients will love them.
Understanding the rates
CSI Life uses a rating strategy that bands ages 65-69 or 65-70, depending on the state. The rate is the same for all ages in this age band so that means no rate increases due to age until age 70. The result is that CSI Life is normally a little less competitive at age 65. However, at age 70 and up, CSI Life is in almost all cases the most competitively priced plan in the state. As expected, this model is delivering a favorable mix of business. Based on the first 2 states where this model was released, Arizona and Illinois, the rate increases have been below trend on Plan G. After 18 months into this program, Arizona received a 1% increase on Plan G and Illinois received a 0% increase on Plan G.
Low rate increases
CSI’s rate increase history is second to none. Their average rate increase is only 2.5% for the states in which they do business.
Clients who choose CSI tend to stay with CSI. Happy clients make for long-term clients. As an example, over 60% of the policies sold in 2011 are still in force.
Unique compensation for a unique product
CSI Life has a two tiered, flat fee compensation structure. No other carrier that we’re aware of does this.
Tier I offers a slightly lower comp that industry standard, while Tier II offers a higher than industry standard comp. Agents reach Tier II simply by having 50 in-force cases within any 15 month window. Once an agent hits Tier II, CSI Life retroactively pays comp on Tier I business to equal Tier II comp!
If you don’t have CSI or CSI Life in your sales kit, or you just aren’t writing much, what are you waiting for? This carrier is great for your clients, and great for you.
Get contracted today, or contact us with your questions.