Top Challenges facing Health Insurance Companies

These are the top five common insurance industry challenges brokers, agents, and claims specialists face today.

1. The rising cost of healthcare

One of the biggest challenges for insurance professionals is the ever-increasing cost of healthcare. Health insurance professionals have come to expect premium prices to go up once renewal season comes around. The higher price tag makes it increasingly difficult to help small businesses find an affordable plan that meets their budget. 

2. High customer expectations

Your customers expect a high level of service that’s as personal as it is professional. A PwC study3 on customer experience found that one in three consumers will walk away from a trusted brand after a single bad experience. Data from the survey found that 82% of U.S. consumers want more human interaction as well.

Healthcare consumers expect their brokers and agents to act as trusted advisors they can count on to help them make informed decisions about their health plans. Your clients want to know they’re seen, heard, and cared for. When you take the time to educate them and listen to their needs, they’re more likely to trust your professional opinion.

3. The digital transformation

Another challenge for insurance organizations and insurance professionals is adjusting to technological advancements. Optimizing operations using digital technologies is the name of the game for 2024.

With everything being instant these days, it’s become an expectation for your clients. Much of the world digests information in quick bits on the internet, social media, and other digital platforms. You’ll get left behind if you’re not embracing digital resources and technology in the insurance sector.

4. Protecting health information

Another challenge for those in the insurance industry is keeping their client’s personally identifiable information (PII) and protected health information (PHI) safe. The healthcare space is loaded with private, confidential data. These days, everything from health records, prescription information, and medical histories all exist in some electronic format.

5. Ongoing industry changes

From the rise of telemedicine and telehealth to unique guidelines for those impacted by COVID-19, health insurance professionals have to continually stay informed about relevant industry news, regulations, and insights as they happen.

Leave a Comment