Insurers benefit from private health insurance exchanges
A new report says that insurers that offer single-insurer private health exchanges are seeing significant benefits. The survey of 100 health insurance industry stakeholders by Array Health has found that 52 per cent have seen a reduction in administrative costs, while 48 per cent have increased their market share. Of those that plan to offer single-insurer private exchanges 55 per cent expect that a reduction in administrative costs will be among the benefits, followed closely by increased revenue (45 per cent) and increased market share (43 per cent).
Private exchanges are on their way to becoming the de facto model for employer-sponsored health insurance. Nearly three-quarters of respondents (71 per cent) indicated that the majority of health insurers will offer a private single-insurer exchange by the end of 2017, if not sooner, and 44 per cent indicated that the majority of employers will offer employer-sponsored health benefits via a private exchange within that same time frame.
Telematics increasingly popular in auto insurance
Auto insurers in the UK are increasingly using telematics to offer better coverage to drivers. The technology, similar to the black boxes used on aircraft, are particularly popular with young drivers who are generally hit with high premiums due to the level of claims involving some of their peers. The British Insurance Brokers’ Association says that premiums can be reduced by up to 25 per cent for safer drivers and is urging the government to give insurance premium tax relief to encourage the use of telematics. Data from a telematics provider shows that 1 in 8 young drivers who use the technology will crash in the first six months on the road compared to 1 in 5 who don’t.
International insurance industry gathered in Washington
An international conference is continuing Friday with almost 300 attendees from the global insurance industry gathered to discuss various topics affecting the sector. Cybersecurity, crisis prevention and international insurance standards are all on the agenda.
Monica J Lindeen, president of the National Association of Insurance Commissioners gave the opening welcome Thursday: "More than ever, we are seeing how developments in the global financial services marketplace impact the insurance sector," said Lindeen in her opening remarks. "We are seeing how international developments can impact individual jurisdictions, including the U.S. regulatory framework." Other speakers at the event include Masamichi Kono, vice minister for International Affairs of the Financial Services Agency in Japan; and Felix Hufeld, president of The Federal Financial Supervisory Authority and chairman of the IAIS Executive Committee.
