This has been an exciting month for a couple of reasons – firstly, I joined the LOGiQ3 team as our Inside Sales Specialist and have spent this week getting to know the great group of people here. Second, there have been some exciting things going on in the insurance industry which will broaden the value offering clients have access to and also drive a more customer-centric industry. Check out a few of the major announcements that have been made below:
A First in the Canadian Insurance Market
This week, Manulife announced that they would become the first Canadian Insurance company to offer life insurance (up to $2,000,000) to those who have been diagnosed with Human Immunodeficiency Virus (HIV). This marks a milestone in the Canadian Insurance market, as the diagnosis was previously an outright decline for those with the diagnosis.
Advances in medicine and treatment for those living with HIV over the last 20 years has changed the prognosis from a near death sentence to a life expectancy that is close to on par with the average life expectancy to those not living with the chronic disease. The availability of these treatments and their effect on the mortality of those affected were catalysts in allowing the insurer to make the unprecedented (and frankly long overdue) move.
Such a revolutionary move could have implications not only on the volume of business submitted for the insurer but on the processing time of client applications. Since a diagnosis of HIV or AIDS has resulted in a declined insurance application, there will be a significant learning curve for underwriters who have previously not worked in depth on cases involving the disease.
What will be even more interesting is to see how and when other insurers follow suit on this move, which will currently give Manulife potential influence on risk classification.
Could Peer2Peer Insurance revolutionize the Insurance Marketplace?
Peer 2 Peer Insurance isn’t an entirely new concept – it has existed in various forms around the world for quite some time. The idea behind it is quite simple – groups of policy holders pay premiums into a claims pool to protect against loss of a particular asset (which could be essentially anything). If there is any surplus of funds in the claims pool at the end of the policy period – there would be a refund to the policy holders. If the policyholder experiences a loss during the period, they can draw on the claims pool to cover the loss.
Like I said, simple concept – but one that has not been without its criticisms from the get-go. The concerns are valid;
What happens if the losses experienced by the policyholders exceed the total amount of the claims pool? and What protection is there for policyholders if the Insurer goes under?
Since Peer 2 Peer Insurance companies have typically existed only as an independent broker and not as an actual insurance carrier, they would not be protected by organizations like Assuris in Canada (who cover policyholders up to a certain amount should an insurance company go bankrupt).
Insurtech start-up Lemonade plans to change all that. They have registered in the state of New York to operate as an Insurance Carrier as opposed to an independent broker, which is a first in P2P. Details on their business model remain relatively under wraps for now – but it brings up a lot of interesting questions with regards to the future of this type of insurance. How would these types of products be underwritten – if at all? How may reinsurers get involved or will there be any impact at all?
Here at LOGiQ3 – we place an incredible value on innovation, which is why we enjoy developments like the above. They can set new benchmarks and set new precedents in the way we all do business.
You can stay up to date with the latest industry news by following our [Insurance News Series] on Twitter with the hashtag #L3InsuranceNews.
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