Insurance industry dealmakers say that the Affordable Care Act (ACA) is spurring more companies to form alliances around voluntary offerings, according to a survey of Inter-Company Marketing Group (ICMG) members. Healthcare reform is expected to boost interest in supplemental medical and cancer/critical illness products — among others.
The distribution of supplemental products is expected to come from a wide variety of channels including GAs, regional and national brokers, TPAs, payor markets, payroll processing companies, enrollment firms, and carriers that simply want to “private label” the products to round out their portfolio. Seventy-six percent of member companies are considering alliances due to healthcare reform; 56% expect more business through strategic alliances for the industry as a whole; 48% expect more business through strategic alliances for their company.
The survey offers the following insights from executives:
• More alliances will be formed and/or expanded around voluntary offerings – both with traditional and non-traditional products.
• Many carriers are moving into voluntary products.
• As a greater share of healthcare costs are shifted to the employee, supplemental products will play a bigger role.
• Larger insurance carriers are taking over the marketplace, which will lead to premium increases.
• Some larger firms will move to becoming the government’s TPAs instead of really providing insurance.
• Offering underwritten individual and group health will be a thing of the past once healthcare reform becomes effective in 2014.
• Policies will be serviced by sponsored partners, and new business will be issued under the new guaranteed issue guidelines in 2014.
For more information, visit www.icmg.org/survey.asp.
