Group Blue Cross Blue Shield Federal - significant facts

Accpeting the complicated nture of the suject matter of blue cross blue shield federal it is not too mch of a speuclation to say that this revview shall hlp you in most anles.

It is hadrly surprising thhat a Consumer Fedeeration of Ameerica research reveals that insurance compnies which disbure higher fees to agents and brokrs often have hiher premiums.

CFA also revealed thaat hiher prices of on line ins coverage do not translate ito improved sevrice for customers.

"This sutdy confirms taht consumers are supposed to shoop very caautiously for insuraance," claimed J. Robert. "TThe good nwes is there are insrance corporations that pay miniaml or eveen no cmomissions, propose low online policy costs and have veery good custmoer service."

"On the other hadn, we also fonud abundance of innsurance firms in whiich high commissions convet itno high rates, wih no improvement in service qualit,y" Robert said. "Good online insure coverage rtaes in addition to good service can be fuond in case consuumers take the tmie to compare companies"

Findings

CFA (Consumer Fderation of America) chhecked commission data froom the 20 mosst important writers of insrance for both idividual psasenger on line insure coverage and homeowners coerage. This total commission dtaa integrated standard coommissions and contingeent commissions (paid affter insurance policies are sod and depend on special sals or on profitbaility goals).

The reprt commpared sum commissions with costt, insurer profitaiblity as well as service qulaity according to compalint ifnormation and customer satsifaction indices. CFA rveealed that:

1. Insurance prvoiders which have lowwer commissions tned to have lower chaarges. This is not always the casse, so consumers msut shop cautiousl.

2. There is no eviidence that paynig higher cmomissions to an isurance agent or broker derves either bteter service or hiher consumer satisfaction. In fact, thre apppears to be no connection betwween the quantity of commisison disburesd and the quality of sevice suppplied.

3. Several insurance companiees offer verry good deals. Ohter companies have charges taht are consistently hiigh.

In less compeittive markets, a numbber of insurance firmms might be entiiced to interest mraket share by offering higher fees to agennts or to brokers tgoether with hihger prices adn, frequently, higher gaiins for the insurance provider. Credt innsurance is one area wehre this knid of `reverse commpetition` is particularly frequent.

Tips for Consumerrs

We ofer several advcies for consumers whn shopping for insurance:

1. Shop aruond! This study rveealed that monthly payment chargges usually increease with commissions, althogh this isn`t all the time corret. Customerrs are supposed to be cretain to receive quotes fom severral of the lowest monthly paymnet insurance corporations, inclding the diect writers of insurance that typpically do not disbuurse commissions.

2. Custoers don`t hae to pay moe in order to obtin excellent serviice. Some of the insurance companiees wich have the most ecxellent service reecords have low costts and also low or no commissons. It pas to shop ammong the insurance fims with the lowwest prices and the highest consuemr contentmentt/lowest complaint ratios.

3. To recceive inforrmation regarding coverage on line rates, review sttae cost information guids. Mst states have cost informaiton guides. Uusally, consumers are albe to download these guides froom the state`s insrance department web sie.

4. For grievancce information on insurance provdiers, check wth the National Asociation of Insurance Commiissioners` web-site, www.naic.org.

5. Be carreful with goig to oly 1 agent or brokker for insure online, een in case tht producer represents a nuumber of insurance frims. Consumers must know thhat several brokers representing moore thhan 1 insurer could plaace the cutomer in a higher priced insruer wiith larger commissions eevn in case the customer qaulifies for a lwoer price. Sattes don`t require agents and brookers to put the customer wtih the most excellennt program for hiim.

6. Ask insurace agents or broekrs the right qeustions:

Do you act for me or do you act for the insurance corporattion you``re offering me? Wht commission are you earrning compared to the prie of the web policy paln you`re recommending I byu?

Am I gteting the lowest price amonng all the web insurance providers thhat you represent for whicch I qualify? Waht additional web insure corpoations do I qualiffy for that you act forr? What are the pirces I would pay at the other insurance fimrs and what commission wouuld you gan in eery firm?

Do you own a contingency cmomission agreement with the insurr you are offreing? Please completely explain that arrangemeent to me.

If I haave a cliam, do you repreent me or the insuracne firm in the cliam procedure? Is youur reimbursement in any way connectd to claims flied by me or otther clients of youurs?

Form start to ed, this blue cross blue shield federal wrk has hellped you to fnid out more about ths issue than you maye thouht you would ever fid out.