Why should I research a health insurance company's CEO?

Does the CEO have more than ten years of experience in healthcare? He or she ought to. Look at the CEO’s bio on the insurer’s web site. Several insurance company CEOs actually have no insurance experience whatsoever. For example, they may have been president of a bank holding company that acquired the insurer in a hostile takeover. Read between the lines; a CEO resume that spouts off a litany of investment firms but shows no direct experience in healthcare wouldn’t make us feel extremely confident if we were shopping for an insurer and had another choice.

When you're shopping for a new health insurance plan, you should check out the strength of the insurance company as part of your research. One important factor is the background of the company's CEO. Does the CEO have more than 10 years of experience in health care? He or she should. You can check this by looking at the CEO's bio on the insurer's Web site.

Believe it or not, several insurance company CEOs actually have no insurance experience whatsoever. For example, they may have been president of a bank holding company that acquired the insurer in a hostile takeover.

Read between the lines; a CEO resume that spouts off a litany of investment firms but shows no direct experience in health care wouldn't make me feel extremely confident if we were shopping for an insurer and had another choice.

Remember, half of all health insurance companies fail in their first three years (that's why longevity is another factor), and a CEO who's never worked in health care is a sign that a company may be on shaky ground in this highly competitive industry.