The individual insurance market is not dead

Reports are coming out that broker commissions are on the decline, and in some cases, have even been eliminated in the individual insurance market. Brokers are understandably concerned and wondering if this means the end of the individual insurance market? The short answer is no.  

It is clear that the individual insurance market is experiencing growing pains. So far, over 20 million people have gotten individual insurance since the individual exchanges opened, while many more consumers remain uninsured. It is a nascent market, where insurance companies have had to price their products with little or no prior claims data to go by. Now that we are a few years into the new health insurance landscape and there is credible data, insurance companies will design their products and prices accordingly. Consequently, this period of transition will stabilize.