Insurers, hospitals unite against exchange proposal
A proposal by California’s insurance exchange has brought health insurers and providers together in opposition. The plan is to cut hospitals from the exchange network if they do meet performance targets.
NPR says that it appears to be a US-first and would require insurers to report those providers which are considered outliers in terms of cost or quality. Hospitals would be first to be targeted, in 2018, with doctors and medical groups ranked later. Those that do not measure up would be removed from health plans by 2019.
Health insurers are not happy about being forced to reveal their negotiated rates with providers but Covered California says it is time to move beyond enrolment to provide better service for consumers.
Sabrina Corlette, a research professor at Georgetown University's Center on Health Insurance Reforms, believes it could raise standards: "California is definitely ahead of the pack when it comes to taking an active purchasing role, and exclusion is a pretty big threat," she said.
Chinese regulators tightening life insurance rules
Short and mid-term life insurance products in China are to face tighter regulations to dissuade “aggressive” investment by insurers in stocks and long-term assets using short-term funds.
According to Reuters, Chinese life insurers must immediately stop selling products in which more than 60 percent of policies are expected to have less than a year duration, and gradually cut back other short- and mid-term products.
China Insurance Regulatory Commission director of life insurance supervision told a press conference: "Insurance companies shouldn't sell quasi-wealth management products purely for investment purposes. That's not insurance."
London insurance market courts Brazilian market
The London insurance market is “open for business” from Brazil. That was the key message from the International Underwriting Association’s CEO Dave Matcham this week as he addressed the Anglo-Brazilian Insurance and Reinsurance Summit in Sao Paulo.
Matcham said that London is not a domestic market and is keen to raise its profile in Latin America. “London has the highest concentration of intellectual capital fostered by the close co-location of insurers, brokers and support services. It should be the fulcrum of insurance invention, where new solutions to meet new customer demands are developed, nurtured and delivered.”
The speech follows last year’s relaxation of rules requiring reinsurance contracts to be placed with local reinsurers.
