Operator: And our next question comes from the line of Ben Hendrix from RBC.
Ben Hendrix: I just was hoping to get a quick update on your thoughts thus far in Medicare AEP. We heard from Humana Management this morning stating that perhaps broadly planned design degradation has progressed to a lesser degree than expected amidst risk model changes, and maybe that could point to less shocking behavior this year than they had initially expected. Just wanted to see how things are turning so far from your perspective, and if there’s any change to the way you’re thinking about the transaction value activity this year?
Pat Thompson: So I would say, AEP has gotten off to a slower start than we would’ve hoped. We would say that some carriers, I think, are doing well. Others are maybe having a few more challenges from at least what we’ve gleaned from the public calls and from what they’ve told us. And would say that really there have been kind of two primary issues. First I would say is that we have some partners that have been struggling to adapt quickly to some of the new marketing rules that have been put into place by CMS. And we have other partners that have seen delays in getting marketing creative approved to be able to run in a timely manner for the start of AEP. And so we’ve seen partners, whether they’re publishers or carriers working through adjustments to try to adapt to this new world order and get things to where they need to be, but it looks like it’s going to be a slower AEP than we hoped.
But having said that whereas bullish as we’ve ever been regarding the long term potential in Medicare Advantage, it’s a product that over half of Americans chosen to opt into. That number keeps going up into the right and that’s a trend that we think will continue in the years to come and one that should benefit us and quite frankly benefit the consumers and the carriers. It’s a win-win-win.
Operator: And our next question comes from the line of Thomas McJoynt from KBW.
Thomas McJoynt: The first one is on the P&C side. Is it appropriate to think of the potential kind of carrier advertising spend perhaps next year or perhaps the year after as getting back to the same percentage of premiums as it was a few years ago? And I ask just because given the robust growth and the overall personal auto premium pool that could suggest a pretty tremendous revenue opportunity in the out years once it does normalize. So just want to get your sense on if you think as a percentage of premium, it should revert back to where it was a few years ago.
Steve Yi: So carriers typically benchmark their advertising spend or measure the effectiveness of their advertising spend based on the expected lifetime value of the customer. And so — or the policy that they’re acquiring. And so I think to the extent that there’s been a significant amount of inflation on the dollar value of all the policies that are being sold, I think you can expect the advertising spend to go up in rough proportion of that assuming that they’re going to continue to measure the effectiveness of their advertising spend based on just the percentage of customer lifetime value that they’re pegging their return on ad spend too.
Thomas McJoynt: And then my second question, is there any concern out there that just the amount of shopping behavior and really the kind of high velocity of switching that we’re seeing in light of the rate increases that carriers are pushing through, means that carriers won’t have to feel the need to pay for leads as much as they have in the past, just because there’s so much kind of natural turnover in the books already?
