There is no competition without marketing

Is there anything else to write about health insurance companies that hasn’t been written a thousand times before?

Perhaps the question of whether the so-called telephone terror has subsided. I have no experience with the subject, except that the term “terror” in connection with annoying phone calls is completely misplaced. I haven’t gotten a call from people trying to sell me health insurance for years. When I am harassed on the phone, I am harassed by wine sellers or English speaking men with Indian accents who pretend to be Microsoft employees and want to hack my computer.

However, I hear from my circle that health insurance salespeople are not completely gone. An industry agreement has been in effect since the beginning of 2021. It doesn’t just state that cold calling – that is, unwanted phone calls – should be avoided. It is stated that the compulsory basic insurance brokerage commission is also limited to 70 francs. Behind this ceiling is the idea that unnecessary brokerage fees for basic insurance are not paid and ultimately at the expense of the premium payer.

What do you think about that? If you want to learn more about health insurance companies with a Google search, the companies that pay for the featured placement appear at the top and then make it transparent in bold with “Ad”. It’s called Google Ads. Anyone who wants to rank high on Google pays up to CHF 80 per person who clicks on the ad and then enters their contact information on the company’s website during the perpetual auction process, or 10 CHF more than a person. one-man brokerage commission. Not a single transaction has yet been made with 80 francs.

In October and November, health insurance companies pay Google up to 100 francs until a quote is requested. And if three bids are needed before the deal is perfect, the costs add up to 300 francs. And that’s for a single degree.

Admittedly, this is purely a guess. Maybe 200 or 400 francs. However, according to the sectoral agreement of the health insurance companies, it is certainly much more than the 70 francs that could be paid to an intermediary for the conclusion of a basic insurance contract.

If my information is correct, the total marketing expenses of the cash registers have increased more than they save with limited agency fees. But it would be hypocrisy to be angry. Competition between cash registers is politically desirable. There is no competition without marketing.

It was politics that pushed health insurers to industry agreement. It didn’t quite work.

And it should be said: There are still ten days left to change health insurance in time if you want to switch to a cheaper model. Allegedly, an above-average number of insured are currently benefiting from it, due to the above-average increase in premiums.