Senior Market Insurance Announcements

Our Thoughts On CSI After the Big January 2018 Rate Increase

October 31, 2018

[image: Our Thoughts On CSI After the Big January 2018 Rate Increase] CSI has been one of our top companies for the last 4 years or so. Their service and underwriting is fantastic, and their rates have been stable and low since they first entered the market.In fact, going into the 2017 AEP, John did a short video on our top carriers, and CSI was our #1.After the big rate increase on January 1, 2018, there has been a lot of confusion about whether or not to continue selling CSI, so I’d like to give some of my own thoughts on the future of the company.First of all, I don’t have a crystal ball, so I can’t tell you where CSI or any other company will be in the next few years, but here are my thoughts.I’d venture to say that CSI has the greatest formula of underwritten business in the industry. About 70% of their business is underwritten, which is just incredible. It’s part of the reason their rates have been able to stay so low for so long.I’ve learned throughout the years that different insurance companies have a profit point they’d like to make.After 6 years of business, CSI just wasn’t hitting that point, so they had to take a big rate increase.Again, I don’t have the answers, but I know that they will need to bring in new business in order to stay on top. If not, their pool of policyholders will only continue to cost more and more in claims, and we’ll only start to see more rate increases.But that holds true for any company.The people out there making the decisions for CSI certainly know much more about this than I do, and we just have to trust that their decisions are the best for the company.In the end, all companies go through cycles. It’s hard to predict who will be the cream of the crop in the years to come.But for now, I think we all need to wait this out and continue doing the best for our clients.{module_adrotator adRotatorId="12553"}

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