Underwriting Systems Receiving Greater Priority in Insurance Industry Investment Strategies

Ranka Vukosavljevic

Much has been written in the press recently about the state of our industry and the challenges it faces. Over the next three years, most underwriters – including BCS – are investing in process automation where major investments have already been made in upgrading our underwriting system. Better analytic tools and more automated systems are the primary drivers of these investments in underwriting technology. Today, investing in automation, predictive modeling, data verification, and collaboration tools is the new norm. Powerful enhancements connect everyone involved in the process including underwriting, contracts, premium collections, claim payments, and reinsurance premium payments. Multiple years of historical data were imported into the new system and allow us to run detailed reports more quickly and efficiently.

The system was designed with the following goals in mind: 

  • Clear goals and metrics
  • Innovative process and ideas
  • Information at underwriter’s fingertips
  • Modern operating model
  • Greater management insight
All of these enhancements ensure an improved customer-centric experience for our clients today and tomorrow.
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Standing Up to Myths on Self-Insurance

Craig Irvine

In the article, “The Case For Self Insurance: Overcoming Common Myths,” George J. Pantos, Esq., Executive Director of the Healthcare Performance Management Institute and former General Counsel, Self-Insurance Institute of America, discusses several common myths being disseminated by critics of self-insurance. With the ongoing implementation of the ACA, these myths are being propagated throughout the news on an almost daily basis. Stating each myth clearly, Pantos addresses them one by one within the larger context of federal preemption and the bounds of permissible state insurance regulation under ERISA. This article will be of interest to anyone involved in the underwriting or selling of self-insurance.

The Case for Self Insurance: Overcoming Common Myths | George J. Pantos

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Small Group Stop Loss Debate Continues

Ranka Vukosavljevic

The debate over stop loss insurance for small group continues its slow burn through the states as they deal with the approach of 2014 and the new world of health exchanges. This article is interesting for its mention of pending California legislation, SB 161, designed to discourage small group employers from medical self-insurance. SB 161 would set the minimum individual attachment point at $65,000. This could be out of reach for many small group employers. This concern is not only being voiced at the state level; the U.S. Department of Health and Human Services last month issued a proposed rule barring entities with relationships to issuers of stop loss insurance, including those who are compensated directly or indirectly by stop loss insurance issuers, from serving as exchange navigators. The attached article includes links to both an analysis of SB 161 and the proposed rule from the U.S. Department of Health and Human Services.

California measure that would deter self-insurance of medical risk by small employers advances | Health Insurance Crisis

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PPACA Update: Insurance Marketplaces Delayed

Becky Thorn

No one thought that implementing ObamaCare would be easy, but years after signing the law into effect, key portions of the plan, including the small-business insurance marketplaces, are still not ready. These insurance marketplaces were supposed to be available in 2014, but are now going to take effect in 2015. This could be an indication of other governmental delays to come. In the meantime, insurance companies continue to struggle to meet government-imposed deadlines as the details of PPACA continue to be adjusted and refined.

PPACA small business insurance market delayed a year | Bloomberg News Service

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Is self insurance for small groups a threat to PPACA?

Becky Thorn

Jay Hancock of Kaiser Health News Thunderdome offers a clear and concise overview of the perceived threat of self insurance for small groups. This ongoing debate will be more clearly understood as we move into the state exchanges later this year and beyond.

Small Businesses Pursue Health Law ‘Loophole’ | Kaiser Health News

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The Self-Insured Segment: Can We Afford to Ignore It?

Becky Thorn

Munich Health North America recently published a newsletter dealing with the self-insured segment and whether it should be ignored along with other pertinent issues. Anne Thomas, Assistant Vice President, Excess Medical Underwriter for Munich Re, points out that “fully insured carriers and HMOs who are not active in the employer stop loss space are missing tremendous opportunity.” She discusses the useful role of captives in delivering employer stop loss protection, and the growing interest in such arrangements. The likelihood of declining profitability for the fully insured market and the uncertainty for those catering to the small group and individual markets is analyzed.

Can You Afford to Ignore the Self-Insured Segments? | Munich Health North America

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A Wide Array of Stop Loss Contract Terms

Ranka Vukosavljevic

BCS Insurance writes a wide array of stop loss accumulation periods.This chart is a simple-to-use tool to understand what type of coverage each accumulation period provides. This chart also is a good reference to check if a stop loss client is considering switching from one accumulation period to another.


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