Essay About Cheap Manpower And Medical Insurance Industry

Medical Insurance Industry – the Major Healthcare Industry Challenges
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TGM 551: Global Marketing Strategy – Charles DavidMedical Insurance Industry – The Major Healthcare Industry Challenges1. Tax Reforms Elimination of penalties for individual mandates to enroll in health insuranceIncrease of risk since healthy individuals would drop out and the remaining pool would become disbalancedPremiums and deductibles would increase and policies would be less affordableThe combination of fewer insured persons coupled with continued high deductibles would lead to increased bad debts1.1 ProposalContinue health insurance mandate for everyoneBalance of healthy and prospective sick people taking insurance Reduction of overall cost of insuranceBenefit for older people and the sick with reduced deductible and copayment2. From cheap manpower to cheap brainpowerShortage of talent with more than 400,000 employees expected to retire from US aloneAutomation unable to replace the qualitative judgement necessary for complex workMedical insurance industry not appealing to millennials with majority moving towards IT and Finance industriesCost of developing raw talent through elective trainings is very high2.1 ProposalDiversify business to emerging markets such as India and China where there is abundance of talentEnabling industry to reduce overall cost due to low real estate cost, labor rates and taxesEnhance customer service with more people ready to work in flexible shifts3. Life expectancy increases, expenses alsoLife expectancy has been steadily rising over the past few decadesThe increase in life expectance rate increases the risk of higher payout by the insurance companiesWhen insurance companies sell policies to people, they have no insight or forecast on how much more the longevity could improve. The insurance companies underestimate looking at the current life expectancy dataThis results in lower premium, since premiums are calculated on the present age of the person when enrolled without any estimation on the life expectancy rate3.1 ProposalDiversify risks by reinsurance from other insurance companies. This would reduce the liability of the original insurerRevamp method of calculating premium taking into consideration last 5 years average on life expectancy rateRelook at current accounting methods by creating a reserve for situation such as these4. Pandemic risks occur more frequentlyHigh risk than ever of experiencing large-scale outbreaks and global pandemics such as SARS, Swine Flu, Ebola and ZikaWith growing population and urbanization comes greater opportunity for disease to spread through air or unclean water The insurance industry faces huge challenges in coping with such unexpected volume of reimbursements4.1 ProposalBusiness Continuity Planning should be done well in advance of a pandemic. A comprehensive business continuity plan defines how an insurer will maintain critical operations during a pandemicDiversify risks by reinsurance from other insurance companies. This would reduce the liability of the original insurerInsurance companies should work closely with the government and health care industry to promote vaccinations for as many diseases as possible5. Urbanization means congestionWhile urban living continues to offer many opportunities, the urban environments can concentrate health risks and introduce new hazardsHealth challenges are particularly evident in cities relate to water, environment, violence and injury, noncommunicable diseasesWith migration comes a huge risk of transfer of various diseasesThese factors take a huge toil on the insurance industry as the risk of payouts becomes higher4.1 ProposalInsurance companies should work closely with the government and health care industry to promote vaccinations for as many diseases as possibleDiversify risks by reinsurance from other insurance companies. This would reduce the liability of the original insurerRelook at current accounting methods by creating a reserve for such situations