New insurance industry trends will be affecting millions of people as we move deeper into the digital era. From economic and labor tendencies to innovative technology, new insurance industry trends are something to keep an eye on. Here’s 7 trends in the insurance industry to watch for:
1. Fewer Insurance Adjusters
According to the Department of Labor, between now and 2020, the employment rate of insurance adjusters, appraisers, examiners and investigators is expected to grow slower than the average for all occupations.
What does this mean for our industry? We may be understaffed going forward. With fewer adjusters comes a higher ratio of claims per adjuster. The industry will look toward technology to streamline processes and fill this labor gap.
2. Number of MVA Claims Increasing
According to the National Highway Traffic Safety Association (NHTSA), the sheer number of Motor Vehicle Accidents (MVA) has been increasing. Car safety has never been better, and with exception to 2015, auto accidents resulting in deaths has been on a downward trend. But the number of bodily injuries and claims has been increasing steadily.
What does this mean for the insurance industry? As automobiles become safer, more lives are saved but more injuries are sustained, resulting in an increasing number of MVA claims, with no plateau in site.
3. MVA Claims Becoming More Problematic to Settle
Unfortunately, MVA claims are getting harder and harder to settle quickly and efficiently. As the settlement process expands to include more lawyers and middlemen, all eager to collect fees, insurance carriers can expect higher payouts while healthcare providers must prepare for lower reimbursements.
4. Auto Accidents Involve 4-5 Different Healthcare Providers, on Average
Emergency Medical Services, Emergency Room doctors and specialty doctors (such as Chiropractors) are all getting involved in auto accident claims. This means the size of the bills are increasing while the reimbursements need to be spread out over 4 to 5 different doctors and providers.
5. Number of Cases In Litigation Are Increasing
As lawyers become more involved in the claims settling process, claims are more often getting held up in litigation. This decreases the reimbursement rate to the healthcare providers and increases the payout from the insurance carriers, while drawing out the average length of the settlement process to 209 days.
6. Increased Costs for Insurers, Providers and Consumers
Due to the growth of MVA claims, the increase in providers per claim and the increase in lawyers and litigation cases, premiums will be rising. Unfortunately, the cost of medical care will grow to cover lower reimbursements while insurance premiums will rise to cover higher settlement payouts. What does this mean for consumers? Prices of healthcare and insurance will continue to inflate with the costs of the industry.
7. New Insurance Industry Technology
A promising trend to look forward to is the introduction of innovative technology into the claims settling process. The claims resolution industry is looking for ways to automate and increase efficiency. Fortunately, a new, cloud-based system that speeds up the claims process and increases savings for both providers and carriers is available.
ClaimTECH Is the Technology Solution
ClaimTECH enables lower payout rates for insurance carriers without limiting the reimbursement rate for healthcare providers. ClaimTECH’s average reduction to auto insurance carriers ranges between 40-60% off of total billed charges.
How is this possible? ClaimTECH has created a cloud-based platform that connects adjusters to providers, which allows both parties to circumvent lawyers, litigation and middlemen. The result is a more streamlined process for everyone.
ClaimTECH is HIPAA compliant and is founded on legal precedent, and currently partners with large, national chains of hospitals across the United States who have agreed to utilize this process and have dedicated personnel to work specifically with claims submitted by carriers through the ClaimTECH platform.
When the system works efficiently, insurers, doctors, taxpayers and patients all benefit. This isn’t too good to be true, this is ClaimTECH. Click the button below for your free product tour: