Finding solutions for current and emerging trends is an expectation. Retention and sustainable growth demand responding quickly and efficiently. Exposures and coverages are evolving along with new and creative ways to provide appropriate solutions. We will look at the evolution and innovation in the areas of cyber liability and various professional liability products such as Miscellaneous, Technology E&O, Contractors E&O and Allied Health. High-level discussion will include key exposures and various solutions that carriers use to successfully provide unique and specific coverage.
Commercial lines growth opportunities abound, despite weak economic growth since the Great Recession and persistence of historically low asset yields. Core commercial lines growth will likely be powered by broad economic and demographic trends, such as the return of most of the nation to positive home price gains and residential equity and the rise in importance of the apartment market, among others. Applying tools developed by MarketStance and public data, Eric will demonstrate some of the key growth opportunities in commercial lines.
The market for High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs) has been growing consistently, and we are continuing to receive requests from large groups who want us to help drive HDHP/HSA adoption. A critical piece of HDHP/HSA adoption is ensuring that members are educated on how the Health Savings Account (HSA) works. If they understand the products and feel supported throughout their member journey, they will be more satisfied with the outcome. Cambia Health Solutions has partnered with HealthEquity in order to build innovative options for consumers based on market research that proves consumers want to receive healthcare information in the moment when they need it. Key functions of the HDHP/HSA, which allow for increased enrollment and attractiveness, come with access to online applications, mobile, alerts, access to claims, online funding, online payments, and the ability to plan for future expenses. We will explore Cambia’s own journey with the HSA as well as future initiatives for consumer-centric design.
Integration of Medical/Rx claim-based data and Socioeconomic (SE) data to predict the level of future stress. We created a methodology to measure stress defining three levels of stress (conditions that are direct effects of stress, conditions where the stress is a major driver, conditions where the stress is of moderate importance) as well as exclusions (impaired cognitive function conditions, children with age under 10, …).
We used 1,123,284 commercial members to create a stress index that predicts future 12 month stress level based on last 12 month claim history and last 24 months of SE attributes: education, address stability, income, taxes, properties, assets, change in housing costs; derogatory attributes (arrests, liens, bankruptcies, evictions), evidence of unpaid financial obligations, high-interest loan applications, relatives’ & business associates’ information, neighborhood burglaries and other crimes, etc.
Stress Index has the ability to capture some of the hidden future costs or the onset of high cost future complications/events. It appears to be a wonderful complement to all other predictions and is extremely effective for all high risk members who have near-term future savings potential that cannot be captured by other standard industry predictions.
The world has changed more in the last 10 years than the previous 100 years. Companies that were industry stalwarts have disappeared, while companies that innovate stay relevant and continue to grow.
This session will discuss building a successful innovation program and how research is an integral part of innovation. Innovation isn't just about new ideas, it’s about understanding the business landscape and knowing where opportunities exist, encouraging new thinking and driving a culture of innovation within the industry.
For intelligence to have a high impact on an organization, it must be relevant and timely. Having a deeper understanding on how to convert information into intelligence is essential, and creating meaningful, actionable intelligence often rests on utilizing the appropriate analytical frameworks and collaboration. This session will provide practical takeaways related to:
The next frontier of self-funded arrangements has been to structure the product and arrangements in a way that is better suited to smaller and mid-sized employers. While self-funded arrangements for groups with more than 100 employees are common, a product that successfully meets the needs of groups with fewer employees has been elusive. Additionally, the anticipated, formerly Affordable Care Act-mandated 2016 small group merger pool was expected to push the appeal of self-funding arrangements for groups with few than 100 employees over the finish line. Finally, the Level Funding product was hailed as the breakthrough self-funding product for groups with fewer than 100 employees since it combines the "advantages of self-funding with the predictability of fully insurance." Level Funding allows employers to choose a set amount they pay for self-funded claims. If their actual experience is less than their set amount, they get a refund. It's similar to smoothing out a heating bill and paying a set amount each month rather than have a high bill in the winter.
While the small group pool didn't change the appeal of self-funding for smaller employers, did Level Funding? Regence embarked on this journey and will share our lessons in 3 chapters called: The Good, the Bad, and the Ugly The Good:
Regence explored a different multi-media marketing strategy to successfully explain this complex topic and financing including examples of groups that were appropriate to level funding. Additionally, Regence launched a new product in 6 months exhibiting nimbleness and a shorter lead time than a typical product launch The Bad:
Pricing smaller employers is challenging and the assumptions vary by carrier and based on their business strategy. Regence learned about pricing, challenges, and assumptions along the way The Ugly:
The on-going infrastructure to support a level funding product including quoting, tracking funding levels, and vehicles to gather risk were highly manual.
Ultimately, Regence followed its business strategy and shifted away from Level Funding. This presentation will be valuable for anyone interested in level funding who wants to learn from our mistakes rather than have to make them on their own!
There are approximately 32 million business in the U.S. and 99.9% of them are considered to be “small businesses”*. As commercial insurance carriers continue to seek ways to better capitalize on this vast market, leveraging predictive modeling for small commercial risks is of critical importance.
In this session we will discuss:
• Which internal teams to include and what business considerations you should keep top of mind when deploying predictive modeling,
• Which 3rd party data sources are most valuable and their pros and cons,
• How to recognize the importance of regulatory requirements, and
• How to evaluate and manage your results.
* 2013 US Census
