Good follow up points Brian. In some respects, it’s not terribly surprising that most insurers ended up at the 11.5% factor. Assuming that number is based on actual claims analysis, each of the insurers’ blocks of business would be large enough and diverse enough, excluding regional variation (e.g. Blue’s), to be representative of the larger industry experience.
I’m sure what’s raised more eyebrows is the coincidental timing and there’s little doubt that this was driven by competitive forces and long overdue.
At the end of the day, transparency is key at all levels of our business and the clients will and should demand it.
Fantastic article. I thought the first was great and this just continues on that “trend”. As a broker that specializes in small group 2-20 staff mostly, I have seen an unweighted average increase of 4.2% per year, over the past 10 years. Considering these groups are mostly “manual” or pooled rates and have low staff turnover, the actual trend is nearer 1.75% once the aging factor is negated. Funny how my little block of mostly manual rate clients is out performing all the insurers. Keep up the good work.
Mike McClenahan:
Good follow up points Brian. In some respects, it’s not terribly surprising that most insurers ended up at the 11.5% factor. Assuming that number is based on actual claims analysis, each of the insurers’ blocks of business would be large enough and diverse enough, excluding regional variation (e.g. Blue’s), to be representative of the larger industry experience.
I’m sure what’s raised more eyebrows is the coincidental timing and there’s little doubt that this was driven by competitive forces and long overdue.
At the end of the day, transparency is key at all levels of our business and the clients will and should demand it.
Thursday, December 15 at 4:21 pm |
Dave Patriarche:
Fantastic article. I thought the first was great and this just continues on that “trend”. As a broker that specializes in small group 2-20 staff mostly, I have seen an unweighted average increase of 4.2% per year, over the past 10 years. Considering these groups are mostly “manual” or pooled rates and have low staff turnover, the actual trend is nearer 1.75% once the aging factor is negated. Funny how my little block of mostly manual rate clients is out performing all the insurers. Keep up the good work.
Thursday, December 15 at 5:13 pm |