The Pros and Cons of Working with Regional and National Carriers

There are hundreds of insurance carriers available for contracting across the country, but how do you make the right choice for your business and your clients?

Understanding the ins and outs of a new carrier or product takes time, and it can be intimidating to take the time to understand and complete contracting with a new carrier. Time spent contracting and learning new plans is time you could have spent in the field making sales. National carriers may seem like an easy option. These carriers have reputable names, larger networks, and resources; however, partnering with regional carriers with a stronger local reputation and network can also be worthwhile.

Below, we’ve laid out some pros and cons of each type of carrier to help you decide!

Contracting with National Carriers

National carriers are large-scale and may offer products in all, or the majority of the, 50 U.S. states. They are the carriers with names you and your clients are likely to recognize like Aetna, Cigna Healthcare, and Humana, to name just a few.

Working with a national carrier broadens your portfolio by helping you offer plans available in more areas and states. And larger service areas can also mean more individuals to market your services to! Additionally, these large insurers typically provide agents with top-tier digital tools and business management platforms that simply aren’t feasible for smaller operations.

“Research carriers you’re familiar with by brand name. When viewing product information, consider placing yourself or a loved one in that plan before you start marketing those plans to others.” — Jazmine Johnson, National Carrier Team Supervisor

Brand-name carriers may offer sales incentives (depending on product line) in addition to turnkey marketing programs and materials. This could mean that, on top of your base-level Med Supp or ancillary commissions, you could have access to more incentives!

The downside of contracting with national carriers can relate to their size. For example, there may be long hold or wait times when calling in to a support line or emailing a contact to the carrier. Additionally, because of the broad market areas, you may notice that their coverage and service is not as customized as other plans from smaller carriers.

Also, due to the better name recognition of national carriers, they can be subject to more fraud and instability. Customers may experience potential scammers trying to say they’re from the carrier and need important information or payment. Due to strict government regulation, there may be more limitations from these carriers as well. Encourage your clients to weigh all of the benefits and drawbacks to choosing a carrier when selecting what coverage is right for them.

Contracting with Regional Carriers

Regional carriers are smaller and typically offer coverage in a few counties or specific geographic areas. Some of the more local carriers include Independence Blue Cross in Eastern Pennsylvania, BayCarePlus in Florida, and Healthfirst in New York.

Smaller carriers can have a deeper understanding of the needs of the beneficiaries in their market, which allows them to create more specific plan designs, tailor sales strategies for agents, and build stronger and more loyal relationships. Their strong community presence can lead to more marketing opportunities for you! You may also experience faster and more personal sales support from regional carriers, which can mean less time troubleshooting or fact-finding and more time out in the field selling.

“Build strong relationships with local community, partner with local organizations, and leverage referrals from current clients or network providers to generate leads and establish a strong presence in the local market.” — Michelle DePasquale, Regional Carrier Team Supervisor

Regional carriers address the local niche, but unfortunately, can be limited. These carriers may offer a smaller number of plans in a strict geographic area. Clients in these plans may also be limited to a small number of hospitals or provider networks.

Because these carriers are not as wide sweeping, they may be working with a smaller budget, and therefore, have a smaller number of digital tools or agent resources available. Consider both the pros and the cons when choosing what carriers are right for you.

Strike a Good Balance

A well-balanced portfolio is critical for agents to be able to meet the requirements of every client in their area. Every individual’s needs are different, and some insurance plans can serve those needs better than others. With a variety of carriers available in your portfolio for clients to choose from, you’re more likely to pinpoint a plan that addresses their needs.

At Ritter, we believe that variety is the spice of life, and a portfolio with both national and regional carrier options is well-suited to look after the unique health situations of every person. Where regional carriers might be lacking, national carriers may be able to fill those gaps and vice versa!

Get Contracting Recommendations

If you’re overwhelmed by all of the options available, schedule a portfolio review with a Ritter Sales team member and get their insight! After your review, you’ll receive a comprehensive Smart Sheet with carrier and plan recommendations tailored to your market.

Add Carriers with Contract Now

You can easily contract with national and regional carriers using Contract Now. Fill your portfolio with a diverse selection of great plan options without the stress paperwork can bring. Choose online contracting from our 120-plus competitive carriers and store multiple contracting requests at once for convenient batch completion.

Receive Continued Sales Support

We’re here to support you after you complete the contracting process. When you register with Ritter, you’ll have access to our sales team for unique client scenarios, questions, and carrier questions. Your Ritter registration also gives you access to Ritter and Integrity tools to help manage clients, compare plan costs, and generate fresh leads.

There are benefits to contracting with both categories of carriers: national and regional. National carriers can provide coverage in wide sweeping areas, while regional carriers help fill in the gaps in coverage areas or plan benefits. Thoughtfully consider your current portfolio, market, and where you would like to grow. To better serve your clients, offer a variety of plans from both major carriers and local ones!