Health insurance is a big business

Posted on April 26, 2009
Filed Under business | Leave a Comment

hospital doctorHealth insurance is probably one of the biggest business out there. For those nations such as the United States that don’t have universal health coverage for all citizens, numerous companies are profiting greatly from selling expensive health insurance to millions of people every year. Ads for “affordable” insurance are always on TV, magazines, newspapers and, of course, the Internet.

It is not only the insurance companies that are bombarding us with advertising to pay what is yet the equivalent of another tax. There are thousands of marketers who are constantly trying to generate valid leads for these companies. A health insurance lead is worth a lot of money and these marketers are compensated handsomely for spamming us.

A lead is essentially a person who has agreed to give all of his/her personal information to a third party in order to receive more data on a health insurance plan. Basically, once a lead has been generated, a very persuasive sales person will take over and try to convert the lead into a paying customer. Health insurance companies are willing to pay top dollar for such information.

Not all leads become full paying customers but a good percentage of them do. And if a company pays $30 for a lead and that converts to a full customer paying thousands of dollars every year in membership fees, then you understand why lead generation is such a popular method of marketing.

At the end of the day, health insurance is a big and very profitable business. This is the reason why the elites who own these companies have repeatedly lobbied US politicians to prevent all attempts for universal health coverage in the country. And unless the new President elect Barack Obama grows some balls in the next 3 years, chances are that the status quo will remain for many decades to come.

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