Why Insurers Should Invest in Management Systems Ahead of 2019

Insurance officer talking with clients

Insurance agency management systems will be more relevant ahead of 2019, as experts expect the number of uninsured people in the U.S. to increase by that time.

According to the Urban Institute (UI), as much as 6.4 million Americans will have no health insurance next year. This would stem from the repeal of an Affordable Care Act (ACA) provision, which requires almost everyone in the country to be insured or pay a certain fine.

Healthcare Management

UI expects an estimated 2.5 million people to choose short-term insurance policies by 2019, following the elimination of the ACA mandate. U.S. Health Secretary Alex Azar believes that such policies provide the public with more options for their own healthcare requirements.

As a result, premium rates may be cheaper especially for younger people since their rates are based on their health condition. For insurance providers, this may prompt them to offer competitive rates and packages to keep up with their business rivals.

In some cases, these may even be important to lure new clients. Meanwhile, a study claimed that despite a higher level of healthcare spending, Americans have shorter life spans compared to those from other developed countries.

Shorter Life

Researchers from Harvard and London School of Economics analyzed data from 11 wealthy countries and found that Americans spent $9,400 in 2016 for healthcare. The average spending from other countries such as Australia, Canada and Japan amounted to $5,400 in the same year.

The expenses included prescription medicine with Americans spending over $1,400, while other countries spent $750 on average. While the U.S. spent more, the life expectancy in the country only reached an average of 78.8 years compared to 81.7 years in other high-income nations, according to the study.

Conclusion

Insurance providers in the U.S. need to reconsider their customer management and relationship strategies, whether or not more Americans will decide to forego insurance next year.