1. Bridging Care with Technology: While common diseases occur commonly, we are all unique individuals. The explosion of wearable technology for health tracking and innovations will continue into this new decade, that improve health outcomes. At Care Bridge International, we scale or “bridge” care with technology to forecast medical exposure for claims. Our data analytics approach delivers lower overall claim costs and improved risk management and claims decision making for our clients. For injured workers or accident victims, this means better health outcomes and faster settlements.
2. Consumer/ Patient Centered Focus: Consumers demand better service, they are not satisfied to purchase goods or services which do not meet their unique needs, in real time. The patient as a stakeholder, is no longer just an observer to a treatment plan, but rather an active participant in the plan of care. Patient quality scores are part of the quality measures for health care and a requirement for shared savings and value-based care initiatives that pay for performance-based outcomes. The Centers for Medicare and Medicaid Services (CMS) champions patient centered care and data analytics to improve health outcomes. These concepts will steadily gain traction in Property and Casualty insurance environment.
3. Digital Transformation: A 2018 National Association of Mutual Insurance Companies (NAMIC) poll revealed, 82% of insurance company respondents named data analytics as a top priority followed by improved customer experience and new products/services. Data is Power! In 2018, A.M. Best announced that it considers innovation to be an important aspect of a company’s ability to bring down its costs for the customers and protect its position in the marketplace, and it is defining the use of innovation in its assessment of an insurance company’s financial stability. Digital Transformation for large companies is particularly difficult, and we can expect these companies to continue to struggle to adopt and embrace this change, but a willingness to deploy resources to acquire resources and talent that can assist them in moving forward.
4. Changing Workforce: Since 2011, 10,000 baby boomers turn 65 years of age, per day, and this trend will continue until 2030. Much of the experience in Workers Compensation claims is retiring, leaving a gap in claims management and claim settlement skills. In 2020, 25% of all workers are 55 years or older, millennials represent 46% of the total combined workforce, and Gen-Z is now 20%, with only about 3-4% in this age group having any interest in the insurance industry. These numbers have a direct impact on the available resources in a claims environment, driving the need for systems and automation to compensate for a shortage of skilled claims adjusters in the insurance marketplace.
5. Privacy and Data Security: The National Institute of Standards and Technology has plenty to say each day about Cyber Security alerts and frameworks to advance the security and privacy of data. There are laws and requirements governing the protection of personal protected health information (PHI). Given the past decade’s historical data breaches and challenges to big tech companies like Facebook, Google and Amazon, we can expect to see a consumer demand for governance in privacy and security and an increased business demand for cyber talent, solutions and insurance protection against data breaches.
The convergence of these trends is the perfect storm driving a digital revolution in Insurance. The implementation of new scale-able technologies will bring order to the claims management process, at a magnitude never experienced before, improving the insurance experience for everyone – the employee, the policyholder, injured worker, claims leaders, providers, suppliers, everyone in the insurance ecosystem. Later, we will wonder how we ever managed claims the “old way”!