Guest Article: Digitization’s Impact on Health Insurance

[Brian Anderson]

Wes Thompson, founder and CEO of emergency medical insurance startup Emerge (and a former president of Sun Life Financial and division president for Lincoln Financial Group), says digitization of the health insurance market is making it easier for customers to get better and cheaper health insurance.

He shared an article (link below) where he says technology is making insurance less painful and easier to navigate than ever before; talks about troubles associated with increased consumer reliance on HDHPs; and how startups like Oscar are disrupting the health insurance market by leveraging technology to make it easier for consumers to buy their own insurance.

Here’s an excerpt:

“According to research from banking giant Morgan Stanley, insurers are increasingly – due to digitization – cutting out the middlemen and interacting directly with consumers. This, in turn, is reducing costs for scores of consumers. If anything, the future of brokers, those costly middle men and women, is most at risk. As people better understand and have access to the insurance market, the better deals they will be able to find for themselves and their families.”

Surely Forum members will have some opposing viewpoints. But how concerning are efforts carriers make to bypass agents via technology?

Insurance Forums | Digitization ensuring insurance is no longer a costly headache

 

[HAFAmerica]

"Costly" Middle Man? Obviously, you have no idea what a agent/broker gets paid or what we do. Extreme Fail!

 

[somarco]

Under Obamacare agents are not only superfluous but are indeed costly middle men.

 

[HAFAmerica]

Under Obamacare agents are not only superfluous but are indeed costly middle men.

Considering many agents worked for free last year and commissions were dropped 50% upon the passing of ACA, fast forward to current day, commissions are zero or $10 an application. Your are misinformed.

 

[somarco]

Your are misinformed.

No, I are not misinformed.

If carriers were making more money with agents in the pipeline, why did they cut commissions?

Think about it before hitting the reply key.

 

[HAFAmerica]

Insurance companies were subject to the MLR first and they cut agent commissions 50%. Insurance companies didn't make enough money in the individual markets, so they cut agent commissions to zero or minimal amount. In no way shape or form, does this cut in commissions constitute our commissions were too high! Insurance Agents are independent and are a free work force for insurance companies. Commissions were built into the premiums as a pass through from the client to their agent for assisting them with their service. Until you have walked in our shoes, I do not expect you to understand or to contemplate the facts.