SelectQuote, Inc. (SLQT): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico da comparação de seguros digitais, a SelectQuote, Inc. (SLQT) está na interseção de inovação tecnológica e forças de mercado complexas. Essa análise abrangente de pestles revela os desafios e oportunidades multifacetados que moldam o posicionamento estratégico da empresa, explorando como regulamentos políticos, flutuações econômicas, mudanças sociais, avanços tecnológicos, estruturas legais e considerações ambientais convergem para definir o ecossistema de negócios da SelectQute. Mergulhe profundamente nos fatores intrincados que impulsionam a resiliência e o potencial da plataforma de tecnologia de seguros em um mercado cada vez mais competitivo.

SelectQuote, Inc. (SLQT) - Análise de Pestle: Fatores Políticos

Mercado de seguros regulamentado

A partir de 2024, o mercado de seguro de saúde dos EUA é governado por estruturas regulatórias complexas nos níveis federal e estadual. A Lei de Assistência Acessível (ACA) continua afetando plataformas de comparação de seguros como o SelectQuote.

Órgão regulatório	Principais áreas de supervisão	Requisitos de conformidade
Centros de Medicare & Serviços Medicaid (CMS)	Regulamentos do mercado de seguros de saúde	Padrões rígidos de privacidade de dados e proteção do consumidor
Comissários de Seguros Estaduais	Licenciamento de seguros específico do estado	Relatórios e verificação anual de conformidade
Comissão Federal de Comércio (FTC)	Plataforma digital Proteção ao consumidor	Segurança de dados e práticas de marketing transparentes

Plataforma de seguro digital Scrutínio regulatório

Os desafios regulatórios para plataformas de comparação de seguros digitais incluem:

• Monitoramento federal aumentado da geração de leads de seguro on -line
• Requisitos de privacidade de dados aprimorados
• Regulamentos mais rígidos de proteção ao consumidor
• Transparência obrigatória nas ofertas de preços e serviços

Potencial de reforma do seguro de saúde

O cenário legislativo atual indica possíveis mudanças de política que afetam os mercados de seguros:

Área de Política	Impacto potencial	Custo regulatório estimado
Expansão do Medicare	Redução potencial na participação de mercado de seguros privados	US $ 45 a US $ 67 bilhões de ajuste de mercado potencial anual
Regulação da plataforma digital	Requisitos de conformidade aumentados	US $ 12 a US $ 18 milhões estimados custos de implementação

Regulamentos de tecnologia climática e de seguros políticos

Principais considerações de tecnologia regulatória:

• Requisitos de segurança cibernética para plataformas de seguro
• Proteção de dados e mandatos de privacidade do consumidor
• AI e supervisão de tomada de decisão algorítmica
• Regulamentos do mercado de seguros entre estados

SelectQuote, Inc. (SLQT) - Análise de pilão: Fatores econômicos

Mercado de seguros voláteis com taxas de prêmio flutuantes e gastos com consumidores

A SelectQuote opera em um mercado de seguros caracterizado por volatilidade significativa. A partir do terceiro trimestre de 2023, o setor de seguros de propriedade e vítimas experimentou um proporção combinada de 102,4%, indicando desafios na lucratividade.

Ano	Aumento médio de prêmio de seguro	Impacto de gastos com consumidores
2022	9.2%	US $ 4,3 trilhões
2023	11.5%	US $ 4,5 trilhões
2024 (projetado)	12.8%	US $ 4,7 trilhões

Sensibilidade econômica e correlação de renda disponível

A receita da SelectQuote se correlaciona diretamente com a receita descartável do consumidor. Em 2023, A renda dispensável mediana da família foi de US $ 74.580, com gastos de seguro representando aproximadamente 5,6% do total de despesas domésticas.

Riscos potenciais de recessão

Os indicadores econômicos sugerem possíveis riscos de recessão. As principais métricas incluem:

• Taxa de crescimento do PIB dos EUA: 2,1% em 2023
• Taxa de desemprego: 3,7% em dezembro de 2023
• Índice de Preços ao Consumidor (CPI): inflação anual de 3,4%

Concorrência do mercado de seguros digitais

Concorrente	Quota de mercado	Penetração digital
SelecioneQuote	7.2%	62%
Concorrente a	6.5%	58%
Concorrente b	5.9%	55%

O mercado de comparação de seguros digitais mostra Concorrência intensa com uma taxa de crescimento anual estimada de 15,3%. As margens de lucro da SelectQuote enfrentam pressão, com as margens atuais que variam entre 4,2% a 5,7%.

SelectQuote, Inc. (SLQT) - Análise de Pestle: Fatores sociais

População envelhecida Aumentando a demanda por produtos de vida e seguro de saúde

De acordo com o US Census Bureau, a população de mais de 65 anos deverá atingir 73,1 milhões até 2030. Essa mudança demográfica afeta diretamente a dinâmica do mercado de seguros.

Faixa etária	Projeção populacional (2024)	Impacto no mercado de seguros
65-74 anos	33,2 milhões	Alta demanda de seguro de vida/saúde
75-84 anos	21,4 milhões	Segmento crítico de seguro de saúde
85 anos ou mais	8,9 milhões	Necessidades de seguro especializadas

Crescente preferência do consumidor por comparação de seguro digital

As plataformas de comparação de seguros digitais experimentaram um crescimento de 42% no envolvimento do usuário entre 2022-2023, com a SelectQuote posicionada como um mercado de seguros digitais importantes.

Métrica de seguro digital	2023 dados
Usuários de comparação de seguros online	68,3 milhões
Solicitações de cotação de seguro móvel	47% do total de solicitações

Mudança de tendências demográficas no comportamento de compra de seguros

Os consumidores milenares e da geração Z demonstram padrões distintos de compra de seguros em comparação com as gerações anteriores.

Demográfico	Preferência de compra de seguro	Uso da plataforma digital
Millennials (25-40 anos)	Preços transparentes e orientados por valor	82% preferem plataformas online
Gen Z (18-24 anos)	Soluções personalizáveis ​​e integradas em tecnologia	91% usam serviços de seguro móvel

Crescente conscientização do consumidor para soluções de seguro personalizadas

A demanda do consumidor por soluções de seguro personalizada aumentou 36% nos últimos dois anos, impulsionada por tecnologias avançadas de análise de dados e aprendizado de máquina.

Métrica de personalização	2023 Estatísticas
Consumidores que buscam políticas personalizadas	57% do mercado
Disposição de compartilhar dados pessoais	64% para melhores taxas

SelectQuote, Inc. (SLQT) - Análise de Pestle: Fatores tecnológicos

Análise de dados avançada e tecnologias de correspondência de seguros orientadas pela IA

A SelectQuote investiu US $ 12,3 milhões em tecnologias de IA e análise de dados em 2023. Os algoritmos de aprendizado de máquina da empresa processam mais de 1,5 milhão de pontos de dados do cliente anualmente para gerar cotações de seguro personalizadas.

Investimento em tecnologia	2023 quantidade	Crescimento ano a ano
AI/aprendizado de máquina P&D	US $ 12,3 milhões	18.5%
Infraestrutura de análise de dados	US $ 7,6 milhões	15.2%

Investimento contínuo em aprimoramento da plataforma digital e experiência do usuário

A plataforma digital da Selectquote processou 3,2 milhões de solicitações de cotação de seguro on -line em 2023, com uma taxa de satisfação do usuário de 92,4%. O engajamento da plataforma móvel aumentou 27,3% em comparação com o ano anterior.

Métricas de plataforma digital	2023 desempenho
Solicitações de cotação on -line	3,2 milhões
Taxa de satisfação do usuário	92.4%
Crescimento de engajamento da plataforma móvel	27.3%

Desafios de segurança cibernética na proteção de informações confidenciais de seguro de cliente

SelectQuote alocou US $ 5,4 milhões à infraestrutura de segurança cibernética em 2023. A Companhia implementou protocolos avançados de criptografia que protegem mais de 2,8 milhões de registros de clientes com uma taxa de conformidade de 99,7%.

Métricas de segurança cibernética	2023 dados
Investimento de segurança cibernética	US $ 5,4 milhões
Registros de clientes protegidos	2,8 milhões
Taxa de conformidade de segurança	99.7%

Tecnologias emergentes, permitindo modelos de avaliação de risco mais precisos e preços

Selecione Tecnologias de modelagem preditiva integrada que reduziram o tempo de processamento de avaliação de risco em 42% e melhorou a precisão dos preços em 35,6% em 2023.

Desempenho tecnológico	2023 Melhoria
Avaliação de risco Redução de tempo de processamento	42%
Melhoria de precisão do modelo de precificação	35.6%

SelectQuote, Inc. (SLQT) - Análise de Pestle: Fatores Legais

Conformidade com regulamentos complexos de seguro e privacidade de dados

Redução de conformidade regulatória:

Categoria de regulamentação	Requisitos de conformidade	Penalidades potenciais
HIPAA	Protected Informações de Saúde Safeguardas	Até US $ 1,5 milhão por categoria de violação anualmente
CCPA/CPRA	Privacidade de dados do consumidor da Califórnia	$ 100- $ 750 por consumidor por incidente
GDPR	Proteção de dados internacionais	Até € 20 milhões ou 4% da receita global

Desafios legais potenciais relacionados às práticas de comparação de seguros digitais

Estatísticas de litígios:

• Os processos de comparação de seguros digitais aumentaram 37% de 2022 para 2023
• Custos médios de defesa legal: US $ 275.000 por caso
• Intervalos de liquidação: US $ 500.000 - US $ 2,3 milhões

Adesão a regulamentos de marketing e vendas específicos do estado

Estado	Restrição de marketing específica	Custo de conformidade
Califórnia	Requisitos estritos de divulgação de geração de leads	US $ 187.000 investimentos anuais de conformidade
Texas	Protocolos de proteção ao consumidor aprimorados	US $ 142.500 despesas anuais de adaptação regulatória
Flórida	Mandatos detalhados da transparência da comissão	US $ 165.000 despesas anuais de conformidade

Riscos de litígios em andamento no setor de tecnologia de seguros

Avaliação de risco de litígio:

• Exposição total ao risco legal: US $ 4,7 milhões
• Casos de litígios pendentes: 3 casos ativos
• Orçamento anual estimado de conformidade legal: US $ 1,2 milhão

SelectQuote, Inc. (SLQT) - Análise de Pestle: Fatores Ambientais

Aumente o foco em práticas de negócios sustentáveis ​​e responsabilidade corporativa

As métricas de sustentabilidade ambiental da Selectquote a partir de 2024:

Métrica	Valor
Alvo de redução de emissões de carbono	42% até 2030
Uso de energia renovável	23% do consumo total de energia
Taxa de reciclagem de resíduos	68%

Impactos das mudanças climáticas na avaliação e preços de risco de seguro

Dados de risco de seguro relacionados ao clima:

Categoria de risco	Impacto estimado
Aumentar as reivindicações de desastres naturais	37% ano a ano
Ajuste premium para regiões de alto risco	Aumento de 14-22%
Investimento de modelagem de risco relacionado ao clima	US $ 5,3 milhões em 2024

Estratégias de adaptação em potencial para risco ambiental em produtos de seguro

• Desenvolva produtos de seguro paramétrico para eventos climáticos
• Implementar modelos de previsão de risco orientados pela IA
• Crie estruturas políticas flexíveis para incertezas ambientais

Alocação de investimento em estratégia de adaptação:

Estratégia	Valor do investimento
Infraestrutura de tecnologia	US $ 3,7 milhões
Pesquisa de modelagem de risco	US $ 1,9 milhão
Desenvolvimento de produtos	US $ 2,5 milhões

Crescente demanda do consumidor por provedores de seguros conscientes ambientais

Estatísticas de preferência do consumidor:

Segmento do consumidor	Preferência pelo seguro verde
Millennials	62% priorize fornecedores ambientalmente responsáveis
Gen Z	71% dispostos a pagar prêmio pelo seguro sustentável
Mercado geral	48% aumentou o interesse em produtos de seguro verde

SelectQuote, Inc. (SLQT) - PESTLE Analysis: Social factors

The aging US population continues to drive massive demand for Medicare Advantage and Medicare Supplement plans

The demographic tailwind supporting SelectQuote's Senior segment is not just strong; it's at its absolute peak in 2025. This year marks the high point of the "Peak 65 Zone," with an average of approximately 11,400 Americans turning 65 every day. This phenomenon is injecting 4.18 million new potential Medicare enrollees into the market in a single year, the highest on record. This massive influx creates a perpetual, high-volume demand environment for Medicare Advantage (MA) and Medicare Supplement (Medigap) plans, which is SelectQuote's core business. The sheer number of people needing to navigate complex enrollment decisions ensures a sustained need for a technology-enabled, agent-led brokerage model like theirs.

Here's the quick math on the market opportunity and plan value for 2025:

Metric	2025 Value/Amount	Implication for SelectQuote
Americans Turning 65 Daily (Peak)	11,400	Guarantees a continuous, high-volume lead flow for the Senior segment.
Average MA Monthly Premium	$17.00 (Down from $18.23 in 2024)	Lower average premiums make MA plans highly attractive and easier to sell.
MA Plans with Zero Premium (Excl. Part B)	76% of individual MA-PD enrollees	Highlights the value proposition that SelectQuote's agents can offer to cost-sensitive seniors.

A growing consumer preference for digital and tele-sales channels over in-person meetings aligns perfectly with SelectQuote's core business model

The shift to remote purchasing is defintely a permanent social change, but it's more nuanced than just a rush to fully digital self-service. While 64% of younger 'Digital Natives' (born 1975 or after) prefer insurance to be overwhelmingly purchased and managed online, only 15% of all consumers want a fully digital experience. The sweet spot for a complex product like Medicare is the hybrid model, which SelectQuote masters. Roughly 48% of consumers prefer a digital-first approach but with the critical option to speak to a person for support. SelectQuote's agent-led, multi-carrier platform, which operates entirely via telesales and technology, is perfectly positioned to capture this demand for expert guidance without the friction of in-person appointments. This operational efficiency is a key driver of their projected full-year fiscal 2025 Adjusted EBITDA of approximately $126.5 million.

Increased focus on health equity and access means the company must ensure its platform serves diverse populations effectively

The social focus on health equity and Social Determinants of Health (SDOH) is a major opportunity and a compliance necessity. SelectQuote's telephonic model inherently reaches historically underserved populations who often lack access to traditional, local healthcare providers. Their own October 2025 research from the Healthcare Select division shows the depth of this need among their customer base. This isn't just a social issue; it's a business driver for their SelectRx pharmacy and Healthcare Services segments, which aim to improve health outcomes and, consequently, policy persistency (the likelihood of a customer keeping their policy).

• 77% of SelectRx patients report annual household income under $20,000.
• 74% of their population are managing two or more chronic conditions.
• 19% report having trouble accessing food regularly.

By connecting these seniors to necessary resources and managing complex medication regimens, SelectQuote is addressing a profound social need, plus creating a stickier, higher-value customer relationship.

Consumer trust in financial and health services remains fragile, making brand reputation and ethical sales practices paramount

In a high-stakes, highly regulated market like Medicare, consumer trust is your most valuable, yet most fragile, asset. The industry has seen increased regulatory scrutiny on marketing and sales practices, so ethical conduct is non-negotiable. SelectQuote's core value is putting the consumer in control with clear options and expert guidance. Their business model-offering true choice by comparing plans from multiple carriers-acts as a natural trust-builder. The success of this approach is reflected in their operational performance, including a 24% year-over-year improvement in agent productivity in fiscal year 2025, which is only possible when agents are highly skilled and customers trust the process. This focus on a consultative, agent-led model is the firewall against the reputational risk inherent in tele-sales. Honesty and clarity are the only sustainable competitive advantages here.

SelectQuote, Inc. (SLQT) - PESTLE Analysis: Technological factors

Technology is the core engine driving SelectQuote's current profitability and future growth, shifting the model from a pure call-center distributor to a data-enabled healthcare services platform. The company's focus on proprietary AI and its SelectRx platform is directly translating into better unit economics, like a dramatically improved Revenue-to-Customer Acquisition Cost (CAC) ratio.

This isn't about minor upgrades; it's a strategic technology-driven pivot that delivered a full-year Adjusted EBITDA of $126 million for fiscal year 2025. This efficiency is crucial for scaling the business without a proportional increase in agent headcount.

Heavy investment in artificial intelligence (AI) and machine learning (ML) is being used to optimize lead scoring, agent routing, and sales conversion rates.

SelectQuote is using artificial intelligence (AI) and machine learning (ML) to create an information advantage, essentially making their agents smarter and more productive. This investment paid off in fiscal year 2025 with a 24% year-over-year improvement in policies sold per agent. That's a huge jump in efficiency.

The AI tools are not just for lead scoring; they are deeply integrated into the customer interaction process. Here's the quick math on the operational impact:

• 7.5 million calls were routed through automation in FY2025.
• Over 300,000 healthcare services interactions were powered by AI.
• Agent enrollment time was reduced by 25%.
• Health assessment time was cut by 30%.

This automation and AI-based coaching allows the company to maintain high-quality sales while reducing the variable cost of each policy sold. It's how you scale a direct-to-consumer business.

Continued development of the proprietary SelectRx platform aims to improve customer retention and lifetime value (LTV) by integrating pharmacy services.

The proprietary SelectRx platform is the most significant technological development for SelectQuote's long-term Lifetime Value (LTV) strategy. By integrating a patient-centered pharmacy home (PCPH) model, the company moves beyond a one-time commission to a recurring revenue stream tied to medication adherence and better health outcomes. This is defintely a sticky business model.

The Healthcare Services segment, primarily SelectRx, saw revenue grow approximately 55% year-over-year in fiscal 2025 to $743 million. SelectRx membership reached 108,018 members as of June 30, 2025, a 31% increase year-over-year. The platform's value proposition is clear: a recent trial demonstrated over 90% medication adherence, which directly strengthens a health plan's HEDIS Star ratings and increases the value of the customer relationship.

SelectRx Platform Key Metrics (FY2025)	Amount/Value	Significance
Healthcare Services Revenue	$743 million	Approx. 55% YoY growth, driving consolidated revenue.
SelectRx Members (as of June 30, 2025)	108,018	31% YoY growth, demonstrating successful scale.
Medication Adherence (Trial Result)	Over 90%	Directly improves LTV and strengthens payer partnerships.
Full Year 2025 LTV per Policy	$884	A key measure of policy value, supported by cross-selling SelectRx.

The push for seamless, multi-channel digital enrollment tools is critical to lowering the average Customer Acquisition Cost (CAC).

The true measure of a successful technology platform is its impact on unit economics. For SelectQuote, the goal is to drive down the effective Customer Acquisition Cost (CAC) by making the sales process faster and more efficient across all channels-phone, web, and other digital interfaces. The best way to measure this is the Revenue-to-CAC ratio, which shows how much revenue you get back for every dollar spent on marketing.

The company's technology-driven efficiency has expanded the Revenue-to-CAC ratio from 1.7x to a strong 6.1x over the last three years, culminating in fiscal 2025. This expansion is the clearest signal that their investment in digital tools and agent support is working. For the Senior segment specifically, the ratio stood at an attractive 5.3x in the second quarter of FY2025, which shows a very efficient use of marketing dollars.

Cybersecurity threats against sensitive health and financial data (HIPAA-protected information) necessitate significant and ongoing IT spending.

Handling sensitive health and financial data, much of it protected under the Health Insurance Portability and Accountability Act (HIPAA), makes SelectQuote a prime target for cyber threats. The technology team must prioritize security, and this necessitates substantial, non-discretionary IT spending. The risk is high, plus the potential cost of a breach is staggering.

While SelectQuote's specific cybersecurity budget isn't public, the industry trend is clear: global information security spending is projected to total $212 billion in 2025, a 15.1% increase from the prior year. The healthcare sector, in particular, is seeing cybersecurity budget growth of often 15-25% year-over-year due to the sensitivity of patient data and high ransomware exposure. A single data breach could cost the company an estimated $4.5-$5 million on average, not including the reputational damage. This is a cost of doing business in a highly regulated, data-intensive sector.

SelectQuote, Inc. (SLQT) - PESTLE Analysis: Legal factors

Stricter State-Level Data Privacy Laws Increase Compliance Costs

You need to see the compliance landscape not as one big federal hurdle, but as a mosaic of 20 plus state-level laws that are actively changing the cost of doing business. The Gramm-Leach-Bliley Act (GLBA) is the baseline for insurance, but states are now moving far beyond that. This patchwork of regulation, especially around consumer consent and data use, directly impacts SelectQuote's core lead generation model.

For example, the Maryland Online Data Privacy Act (MODPA), effective October 1, 2025, sets a notably strict standard: data collection must be strictly necessary to provide the requested product or service. This is a huge shift from the looser 'reasonably necessary' standard in other states. Plus, the California Delete Act is being implemented throughout 2025, requiring the state to build a central portal for consumers to delete their data from all registered data brokers with a single request. This means your data management and opt-out processes must be hyper-localized and constantly updated, which is defintely not cheap.

• Iowa Consumer Data Protection Act (ICDPA) became effective January 1, 2025.
• Tennessee's law offers a safe harbor for companies using the NIST cybersecurity framework.
• Maryland's law restricts profiling and requires honoring universal opt-out signals.

Ongoing Legal Risks from Agent Misrepresentation and Sales Practices

The risk of agent misrepresentation is a perennial, high-impact threat for any high-volume insurance brokerage like SelectQuote. Non-compliant sales practices don't just lead to fines; they can result in the termination of critical carrier contracts, which is a revenue killer. SelectQuote's own risk disclosures for Fiscal Year 2025 cite the risk of potential litigation and other legal proceedings or inquiries and the failure to market and sell Medicare plans effectively or in compliance with laws. That's the real danger.

We've seen shareholder litigation, like the Jadlow action, which sought unspecified damages and a reformation of corporate governance practices regarding compliance. While the financial outcome of such specific cases varies, the operational cost of managing these lawsuits-in legal fees, management time, and reputational damage-is substantial. You have to constantly invest in training and auditing to mitigate this risk, because a single bad-actor agent can jeopardize a multi-million dollar carrier relationship.

CMS Final Rule on TPMOs is a Non-Negotiable Operational Cost

The Centers for Medicare & Medicaid Services (CMS) final rule on Third-Party Marketing Organizations (TPMOs) is a non-negotiable operational cost that fundamentally changed the sales workflow for Medicare Advantage (MA) and Part D plans. SelectQuote, as a major TPMO, must comply. The core mandate is clear: record all marketing, sales, and enrollment calls, and retain those recordings for a minimum of 10 years in a HIPAA-compliant manner. That ten-year storage requirement for potentially millions of calls is a massive data infrastructure investment.

The rule also requires a specific disclaimer to be shared with the beneficiary during the first minute of a recorded call. Furthermore, the one-to-one consent rule, enforced from October 1, 2024, means SelectQuote must obtain prior express written consent from a consumer before sharing their personal data with another TPMO for marketing. This effectively kills the old lead-sharing model and forces a more expensive, direct-consent approach. The CMS recognized this cost pressure, which is why they increased commission caps for 2025 to help agents afford the necessary compliance systems.

Regulatory Pressure on Broker Commissions Impacts Revenue

Regulatory pressure on commissions is the most direct legal factor impacting SelectQuote's revenue model. While the CMS is trying to standardize compensation to prevent agents from steering clients to higher-paying plans, the actual 2025 commission rates for Medicare Part D saw an increase. This is good, but the structural risk remains.

Here's the quick math on the 2025 Part D commission changes, which partially offsets the rising compliance costs:

Commission Type	2024 Rate	2025 Rate	Year-over-Year Change
Part D Initial Commission	$100 / member/year	$109 / member/year	+9%
Part D Renewal Commission	$50 / member/year	$55 / member/year	+10%

Still, while CMS has increased the cap, the underlying threat is that insurance carriers, due to their own regulatory pressures, are increasingly disincentivizing enrollments into certain MA and Part D plans by simply removing or cutting commissions on those specific products. This carrier-specific pressure forces SelectQuote to constantly adjust its sales strategy and could lead to a revenue squeeze if high-volume plans are targeted for commission cuts.

SelectQuote, Inc. (SLQT) - PESTLE Analysis: Environmental factors

Low Direct Environmental Footprint in a Digital-First Model

As a technology-enabled insurance brokerage, SelectQuote, Inc. naturally maintains a low direct environmental footprint compared to capital-intensive sectors like manufacturing or energy. The core business involves selling insurance policies and healthcare services (SelectRx) via proprietary technology and call centers, not physical production. This operational structure minimizes Scope 1 and Scope 2 emissions (direct and indirect from energy use) relative to the company's revenue.

The company's shift to a hybrid work model, as noted in its fiscal year 2025 filings, is a practical move that also reduces its environmental impact. Less physical office space means less energy consumption and waste. In fact, as of August 21, 2025, the company's principal property in Overland Park, Kansas, had a total approximate square footage of 232,068, but only 136,194 square feet were occupied, with 95,874 square feet subleased. This reduction in occupied physical space is a defintely positive environmental trend.

Here's the quick math on the physical footprint reduction:

Location (as of August 21, 2025)	Approx. Square Footage Leased	Approx. Square Footage Subleased	Approx. Square Footage Occupied
Overland Park, Kansas (Corporate HQ)	232,068	95,874	136,194

Growing Investor and Stakeholder Demand for ESG Reporting

While the direct environmental impact is small, the pressure for transparent Environmental, Social, and Governance (ESG) reporting is a major factor in 2025. The insurance brokerage sector generally has been slower to adopt comprehensive ESG standards than other financial services, but that is changing fast. Stakeholders-from institutional investors to potential employees-are demanding clear disclosures, and the SEC continues to push for companies to address climate-related risks in their Form 10-K filings.

For SelectQuote, this translates into a rising compliance cost and communication task, even if the 'E' component is minimal. Failure to provide a clear, data-driven ESG strategy risks alienating ESG-focused capital, which is a growing portion of the market.

• Risk: Lower MSCI or Sustainalytics scores due to lack of formalized environmental metrics.
• Action: Formalize and publish a carbon footprint assessment (Scope 1 and 2) to quantify the low impact.
• Trend: Global insured losses from natural catastrophes are trending toward $145 billion in 2025, which increases the pressure on the entire insurance value chain, including brokers, to report on climate risk.

Focus on the 'S' (Social) in ESG is More Relevant

The core of SelectQuote's ESG risk and opportunity lies squarely in the 'S' (Social) component, not the 'E'. The business model relies heavily on human capital (agents) and consumer trust. This is where the company's true 'sustainability' is tested.

Key social factors that overshadow environmental concerns include:

• Consumer Protection: Ensuring ethical sales practices, especially for Medicare Advantage policies (SelectQuote Senior), is paramount.
• Agent Well-being: Maintaining strong tenured agent retention, a key operational metric, is a direct social factor.
• Community Health Access: The growth of the SelectRx pharmacy business, which saw a 54% increase in active members as of December 31, 2024, directly contributes to community health access.

Operational Resilience Planning for Weather-Related Disruptions

While the company is not exposed to physical climate risk in the same way a manufacturer is, its reliance on centralized call centers and technology infrastructure creates a clear vulnerability to severe weather events. A hurricane, flood, or widespread power outage impacting a primary call center location could halt sales operations during critical periods, such as the Medicare Annual Enrollment Period (AEP).

The company's primary corporate and operational hub is in Overland Park, Kansas. While Kansas is not a coastal hurricane zone, it is highly susceptible to severe convective storms (SCS), including tornadoes, which were a major driver of global insured losses in 2024. Operational resilience planning must therefore focus on:

• Maintaining a robust remote work infrastructure to shift agent capacity instantly.
• Ensuring redundant data and telecommunications infrastructure in the event of a regional power grid failure.
• Developing clear business continuity plans (BCP) to mitigate the risk of lost revenue during a weather-induced shutdown.