If you’ve ever looked at Medicare Supplement (Medigap) premiums and thought,
“Wow, how can this carrier afford to sell that low?”
—you’re not imagining things.

You’ve just spotted what’s called a Charter Rotation Strategy.

And while it sounds like something only actuaries or insurance execs should care about…
it’s exactly the kind of behind-the-scenes move that shapes your commissions, renewals, and lead strategy.

Let’s break it down.

What Is the Charter Rotation Strategy?

The Charter Rotation Strategy is an actuarial play carriers use to dominate Medigap market share.

Here’s how it works:
A carrier enters the market with rock-bottom premiums — often too good to be true.
They know they’ll operate at a loss for 10 to 15 years, but they do it strategically.

Why? Because they’re buying market share.

By undercutting the dominant carriers (the ones holding 15% or more of the market), they attract healthier underwritten applicants, build a massive block of business, and gradually push out competition.

Once they’ve achieved their desired market share, they slowly raise rates, stabilize their loss ratios, and finally start turning a profit.

It’s the long game — and it works.

The Math Behind the Madness

In actuarial terms, not all Medigap applications are created equal.

Here’s a simplified breakdown:

• Underwritten apps: worth 0.5 points (low risk, profitable clients)

• Open Enrollment apps: worth 1.0 points (neutral, average risk)

• Guaranteed Issue apps: worth 2.0 points (high risk, costly to insure)

If your carrier writes too many open enrollment or GI policies, their loss ratios skyrocket.
That’s why carriers using this rotation strategy target a mix of at least 40% underwritten business — the healthy applicants who help balance the block.

It’s a calculated sacrifice: lose early, win big later.

What This Means for You (The Agent)

This strategy reshapes your prospecting and lead generation approach.

Because when a carrier uses this model, rates will look extremely attractive — but only for a limited window before adjustments kick in.

👉 That’s your window of opportunity.

When you’re armed with CMS data and high-quality Med Supp leads, you can identify which counties have low Medicare Advantage penetration — meaning stronger Med Supp demand and healthier underwriting pools.

That’s where the best business still lives.
And that’s where your Med Supp leads come in.

Exclusive Medicare Supplement Leads

For agents focused on growing their Medicare Supplement book, we offer exclusive, call-verified Med Supp leads at our standard rate.

✅ 100% exclusive — never resold
✅ Call-verified interest in Medicare Supplement plans
✅ Minimum order: 10 leads
✅ Delivered in as little as 7 business days

If you’re looking to consistently write Med Supp business and keep your pipeline full year-round, these leads give you a reliable, predictable flow of prospects who pick up the phone and are ready to talk coverage.