Benefits 101: Health Insurance Definitions Every Employee Needs to Know

Consultants Mind

Here’s a breakdown of the most common terms found on a health insurance policy. Premium is the amount you and/or your employer pay each month towards an insurance policy. This enables the employer to pay February’s insurance bill at the beginning of February and allows the employee to have coverage for the entire month, even if the employee quits on February 1. A deductible is how much you pay before insurance kicks in to cover any remaining expenses.

Motor Insurance 2.0

BCG

Auto insurers are basking in a false sense of security, seemingly oblivious to the impending decline in market size and the threat of new entrants. Insurers must adapt. Article Thursday, October 13, 2016.

Who Will Insure Self-Driving Cars?

Strategy+Business

The first sector to be disrupted by connected-car technologies could be auto insurance. The overall safety improvements ushered in by self-driving technology will affect the insurance business long before fully autonomous vehicles reach the mainstream.

Life insurance: Ready for the digital spotlight

McKinsey

Life insurers have been latecomers to the digital era. That will have to change. Our Insights

Make Insurance Cheap Again: Trump Promises Insurance for All

MishTalk

In an interview in the Washington Post , Trump Vows ‘Insurance for Everybody’ in Obamacare Replacement Plan. more…). Economics

Building a Digital Technology Foundation in Insurance

BCG

Insurers today face a host of digital to-dos if they want to stay competitive—much less gain an advantage on their peers. Most insurers need to overcome significant constraints in their current IT landscape. We recently researched the readiness of insurers to go digital.

Evolving insurance cost structures

McKinsey

How incumbents can adapt and save to remain competitive in the digital age. Insights on Financial Services

Liquidity Insurance

MishTalk

Cash Cow Capex Thesis vs. Liquidity Insurance Thesis Nick Nelson has it correct. Much of the cash on hand is nothing but insurance against the same thing happening again. Nonetheless, the cash does provide cheap liquidity insurance against a credit crunch.

Insurance beyond digital: The rise of ecosystems and platforms

McKinsey

Insurance companies have the opportunity to create new sources of revenue by rethinking their traditional roles and adopting an ecosystem mind-set. Our Insights

Insurance 2030—The impact of AI on the future of insurance

McKinsey

The industry is on the verge of a seismic, tech-driven shift. A focus on four areas can position carriers to embrace this change. Insights on Financial Services

Creating Value in Insurance M&A

BCG

This article is based on “Influencing Outcomes in a Consolidating Insurance Industry: Three Keys to Value Creation,” by Pia Tischhauser, published in January 2016 in The Geneva Association’s Insurance and Finance Newsletter. Although not quite at the stage of mania, mergers have been sweeping the global insurance industry. The half of insurance deals that failed to deliver value had fallen prey to a variety of culprits. Insurers can do better.

Raising returns on analytics investments in insurance

McKinsey

In an era of narrow margins and slow growth, insurers’ need to invest in analytics has never been greater. A few thoughtful initiatives can accelerate the analytics journey. Our Insights

Automation at scale is driving transformative change across insurance

McKinsey

Machines can now match or outperform humans across a range of activities in a number of industries, including insurance. Advances in robotics, cognition, artificial intelligence, and machine learning are ushering in a new era of automation.

Driverless Cars Will Change Auto Insurance. Here’s How Insurers Can Adapt

Harvard Business

There is little doubt that the widespread adoption of autonomous vehicles will have a huge impact on the automobile insurance industry. Since insuring privately owned vehicles is what the auto insurance industry has been all about, insurers have every reason to be concerned about their future growth and profitability. However, auto insurers have one factor weighing in their favor: The shift to fully autonomous vehicles will be gradual. Infrastructure insurance.

Time for insurance companies to face digital reality

McKinsey

Regulation, product complexity, and insurers’ large balance sheets have kept digital attackers from insurers’ gates. That is changing, but in ways incumbents should embrace. They can flourish in the digital age—if they move swiftly and decisively. Our Insights

Digital Disruption in the US Small-Business Insurance Market

BCG

Insurers know that many small businesses in the US—those with up to 30 workers—will eventually buy insurance directly online. What insurers don’t appreciate is how fast this shift is likely to happen. Article Thursday, April 07, 2016.

Digitizing Customer Journeys and the New Insurance IT Model

BCG

One Monday morning, as he rides the bus to work from his new apartment in the city’s Wilmersdorf section, where the family moved over the weekend, Rolf downloads his insurance company’s mobile app and updates his account information. Article Thursday, August 18, 2016. Consider this scenario.

Insurance Claim Adjusters Replaced by “IBM Watson Explorer”

MishTalk

Fukoku Mutual Life Insurance in Japan is about to replace claim adjusters with a software robot from IBM. Manufacturing jobs have already been decimated by robots. White collar workers are next in line. more…). Economics

Listening to What Chinese Consumers Say About Insurers

BCG

When Chinese life and auto insurers set their agendas, they should think about how to make their brands more trustworthy, their products and services simpler, and their claims processing faster and more transparent. Their answers provide a map of where insurers can look to gain an advantage.

Obamacare Design Objective - Force those with insurance onto the exchange

Consultant Ninja

The individual market health care exchanges are set up to, in part, enable the the (non-medicaid) poor, sick, and uninsured to get affordable insurance. But for this risk pool to work, you need a bunch of people who can pay insurance and aren''t that sick. Forcing people out of their existing individual insurance plans wasn''t a surprising, unintended consequence - it is a core design objective of the success of the ACA

Opportunities Open Up in Chinese Private Health Insurance

BCG

Yue, a 38-year-old mother in Beijing, knows all about the limitations of health insurance in China. Her public insurance allows her to go to public hospitals to get routine care, but those hospitals are crowded and confusing to navigate. Focus Monday, August 22, 2016.

Insurers’ digital reality—fewer premiums, more competition

McKinsey

Incumbents should consider partnerships and find new value-added services. Digital Disruption

Harnessing the potential of data in insurance

McKinsey

Insurers collect a wealth of data, but few have found a way to monetize this asset. New “data as a business” models point the way forward. Our Insights

London Insurers Excel at Home but Struggle in Emerging Markets

BCG

Though solid performance in the fast-growing North American market and in the UK has buoyed London Market insurers, they must improve in emerging markets, reinsurance, workforce diversity, and innovation. Article Tuesday, May 09, 2017.

The growth opportunity for private health-insurance companies

McKinsey

The global market for private health insurance is being disrupted—but also growing rapidly. Understanding the forces at work can help payors capture the opportunity. Our Insights

Why Life Insurers and Asset Managers Must Join Forces to Win

BCG

Article Thursday, December 15, 2016 Life insurers are feeling the squeeze. In their efforts to adapt to this upside-down world, life insurers are focusing on optimizing their investment strategies and operations.

Making digital strategy a reality in insurance

McKinsey

Digital transformation is challenging in insurance, where change must happen without interrupting the flow of daily business. Here’s how savvy leaders are taking on the challenge. Our Insights

How Digital Switchers Are Disrupting US Auto Insurers

BCG

Blockchain Could Make the Insurance Industry Much More Transparent

Harvard Business

While Edward Lloyd is largely credited with commercializing the insurance industry, with the creation of his namesake firm, Lloyd’s, over 330 years ago, the original concept of spreading risk (or “mutualizing”) goes back even further. Both then and in 1686, when Lloyd’s was born in a London coffee house, the global insurance industry was a business of utmost good faith , as it remains today. The top 10 insurance brokers in the U.S.

Can Insurance Companies Incentivize Their Customers to Be Healthier?

Harvard Business

The behavioral biases play out in a simple paradox: People overconsume health care but underconsume prevention, and insurers or taxpayers are left with the bill. The same plays out with many lines of insurance, where the immediate benefits of poor choices outweigh the often hidden cost of dealing with their consequences, such as reckless driving or failing to flood-proof infrastructure in highly exposed communities. The result is a structural transformation of insurance.

Major Court Ruling Against Obamacare, Insurers Will Scream; Potential End of Obamacare

MishTalk

Healthcare insurers are already taking it on the chin. Some insurers got out of the healthcare business entirely, others stopped … Continue reading → Economics

Harnessing the power of digital in life insurance

McKinsey

Big data and advanced analytics will enable a wide range of new business applications for life insurers, empowering sales forces and better serving consumers. Our Insights

Harvey Damage Could Top $40 Billion: Only One in Six Insured, 15% of Refining Capacity Down

MishTalk

Current estimates range from $20 billion to $40 billion, but only one in six have insurance. Damage from Hurricane Harvey is expected to total tens of billions of dollars. more…). Economics

How One Insurance Firm Learned to Create an Innovation Culture

Harvard Business

One company that’s making headway on that goal is CSAA Insurance Group (CSAA IG), one of the insurance companies affiliated with the 55 million-member American Automobile Association (AAA). It’s perfectly OK that most people – from call center employees to claims adjusters in the field – focus on continuous improvements to current business processes, the customer experience, and insurance products.

EU Deposit Insurance, a Bank Crisis in Italy and Greece, and the Coming Ban on Cash

MishTalk

Today let’s investigate the EU’s deposit insurance scheme with the likely result being a ban on cash. Last week we investigated nonperforming EU loans and an EU proposal to freeze accounts if a run on a bank starts. more…). Economics

Riders in Alphabet’s Waymo Cars Will Now Be Insured

Harvard Business

a venture-backed insurance startup, to provide some reassurance against unexpected events for riders who will be testing its upcoming autonomous shuttle service. The insurance coverage will include several protections for passengers for the duration of each trip including lost property, trip interruption benefits, and medical expense reimbursement. Based in San Francisco, all insurance in the US is delivered byTr?v v Insurance Solutions, LLC, a licensed insurance producer.

Video: The Bizarre Reason Your Health Insurance Plan Was Cancelled

MishTalk

Link if video does not play: Why Your Plan Was Cancelled: Health Insurance and the Affordable Care Act. What reason might insurers have to cancel plans? There are lots of reasons why your health care plan may have been cancelled but this one is arguably the most bizarre.

As Insurance Losses Mount So Do Refusals: “Sorry, We Don’t Take Obamacare”

MishTalk

A McKinsey study shows Obamacare insurers lost money in 2014 and the losses doubled in 2015. Amazingly, the study concludes … Continue reading → Economics

Rethinking U.S. life insurance distribution

McKinsey

life insurance industry has been a persistent challenge for years. A portfolio of three distinct distribution models, which jointly address the range of consumer needs--from tech-enabled face-to-face advice to remote channels--can set the stage for life insurers to grow and develop stronger ties to their customers. Slow growth in the U.S. More recently, changes in customer behavior are making this challenge even more complex.

SME insurance in Australia—a market ripe for change

McKinsey

The market for providing insurance to small and medium companies is changing quickly, necessitating that providers target customer segments carefully. Our Insights