Why Insurers Should Get Smart About Insurance Companies’ Knowledge
By Jennifer O’Leary-Moore, BloombergBusinessWeek, 10.08.2015, 4:03pm ETIn the past, companies like Health Care for America and Cigna made a concerted effort to be more transparent about their business and their risk factors.
Now, there’s more pressure on insurers and their investors to be upfront about their risk profiles and how they’re investing.
Insurers, of course, don’t need to tell investors how their businesses are performing or what kind of coverage they’re providing.
But as more people become more aware of their own health risks, it’s time for them to start asking for the full picture.
Insurers’ Business Model to Avoid Insulin in Patients and ConsumersInsurers have long had to contend with a market that’s changing rapidly and growing more and more complex.
The number of people with diabetes is growing faster than the population as a whole, and people are living longer.
In a few years, there will be about 7 billion people with the condition, according to the National Institutes of Health.
Insurer profits are driven by profits from insulin-dependent people, who need to be protected from the risks of insulin.
If they can’t get insulin, their health will worsen.
Insurer profits depend on the ability of insurers to predict and protect the risk of diabetes, and it’s difficult for insurers to do so when they’re relying on traditional risk factors that can’t be directly assessed by a physician or other health professional.
The traditional risk-based model has allowed insurers to set rates based on the risk their customers will be exposed to.
Insuring for diabetes is a more complex and risky business model.
The traditional model has also led insurers to assume a much higher burden on their patients to pay for health care, even when they are healthy and have no reason to worry about being insulin-resistant.
Insurance companies are already under pressure from insurers and other insurers to be better about communicating the risks they’re taking.
That means taking better care of their patients and their families, as well as working with insurers to make their risk models more transparent.
Insurance companies have been pushing back against this, arguing that they should be more focused on managing their own risk profiles.
But the way insurers view their patients’ and families’ health risks is changing, too.
More than two-thirds of all Americans have diabetes, according a survey by the Centers for Disease Control and Prevention, and the vast majority of people who have diabetes have never been diagnosed.
There’s no reason insurers shouldn’t be more open about the risks that they take.
If we can better communicate that risk and what it means to our customers, they can make informed choices about whether or not to get insurance, said Dan Korten, chief executive of the Association of American Health Insurers.
Insure companies can’t continue to do what they’ve been doing: not being open about what they’re doing and what their customers risk, he said.
The result is that people aren’t going to see their insurance as insurance.
They’re going to go to their doctor.
Insurans, though, don,t want to change their business models.
They want to be the best they can be, said Peter Janssen, chief financial officer at Humana.
He expects Humana will have to raise premiums in the next few years as insurers become more aggressive about offering insurance coverage to people with conditions that aren’t the same as the condition that they’re trying to manage.
Insurances are working hard to keep patients healthy, and they should, he added, “do everything they can to keep their customers healthy.”
Insurance industry insiders say there’s no shortage of companies to offer insurance coverage that works well for the individual, but the industry’s success is dependent on a large number of companies working together to deliver a high-quality product.
Insured people, for example, tend to use different services than those without insurance.
The insurance companies that insure the uninsured and those who don’t have insurance also need to provide an excellent service.
Insurance companies can be successful if they work together, said John Vannucci, president of the American Insurers Association.
They need to do things like take care of the people who need care in a timely manner, he explained.
Insiders at insurance companies said they are aware of the need for better communication, and many companies are trying to find ways to improve their risk assessments and the quality of their risk management.
Insurance industry insiders agree that the insurance industry needs to work with regulators and insurers to improve risk management and improve risk communication.
But that could also be a tough road.
The Obama administration has been pushing insurers to better manage their business in ways that make it easier for insurers and consumers to compare policies, and those changes could come as soon as the third quarter of this year.