Magnus Magnusson once famously said “I’ve started so I’ll finish”. I do not pretend to be a health industry mastermind but the AMII journey has only just begun and evolution of the industry will dictate if and when it finishes. The open door constitutional change voted for by the members of the original AMII – the intermediated distribution channel, has squared the circle by allowing corporate members in the form of medical insurance and cash plan providers to become members.
But this circle is not yet complete as risk and protection insurers are next on the list for AMII corporate membership.
So nearly a year into this constitutional change what have been the immediate benefits? Arguably the most immediate benefit is the reversal of Bupa’s decision to withdraw from the intermediary market for consumer PMI. AMII was instrumental in protracted negotiations to see Bupa re-enter this market , originally based on a select few intermediaries, but more recently and to be launched shortly in its complete form, to encompass preferential terms to AMII members, subject to acceptance by Bupa.
Indeed Bupa are active corporate members of AMII and our steer to the provider going forward is work with your distribution partners, not in isolation, and together we can grow the market.
Other benefits emerging from the concept of provider membership of AMII include the planned focus groups and working parties with two possible agenda toppers for 2014.
The first is electronic data interchange – EDI. This is an area where huge efficiencies are possible, particularly in the SME sector of PMI. Initially this should facilitate the ease of transfer from one provider to another if insurers agree to electronic transfer of policy certificates. If this could be arranged through a secure form of central clearance it would not only speed up the process but also facilitate accurate risk assessment and potentially ensure fair and affordable premiums for small companies and the employees they cover. Initial indications suggest this initiative may even be cost neutral and the potential to extend it in the future to possibly include full claims transparency or, mindful of the Data Protection Act, financial claims interchange to better and more accurately risk price PMI policies.
This last evolution needs cooperative buy-in by the whole of the PMI provider market to guarantee its success and hence the need for a working party based on intermediaries and insurers. It may need to be tested in stages, for example initially only for PMI policies covering 20 or more employees and those with significant claims spend. It may therefore be that the tide of change is a little way off at present
The other agenda topper for AMII is a working party to explore a revision of the Code of Conduct with specific reference to the intermediated distribution channel. There is no doubt the industry has seen an improvement in ethical behaviour with the advent of regulation since 2005, but that is not to say we have raised the bar to its maximum level yet and with the new regulator suggesting that the insurers themselves take responsibility for policing their agency network, it seems logical this should be the subject of an AMII focus group.
I mentioned earlier the tide of change and this is extremely concerning in terms of the provision of healthcare in the UK, be that private or public. This is an area that AMII believes we have to work with all stakeholders; Government via the NHS; Private healthcare providers including hospital chains, medical practitioners and insurers; regulators and the CII; and most importantly the consumer and UK corporate.
We are evidencing huge changes in the “work market”; institutional change; social and welfare change; environmental change and enormous technological change, all against a backdrop of an ageing population.
In December 2010 there were 11,800 registered centenarians in the UK – The DWP projects that by 2066 there will be around 650,000. This means that this country cannot afford the healthcare of its population.
There has to be changes in funding mechanisms for the provision of public healthcare and initiatives within private healthcare that recognise the need to grow the market at affordable premiums but in tandem with a state system. AMII hopes to be at the forefront of these initiatives by debating and discussing topics such as open referral; by analysing the recommendations of the Competition Commissions’ investigation and by encouraging all involved with the delivery of health and wellbeing to work together and to provide increased standards and deliverable solutions.