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Group insurance : “The current model needs to mutate “


Denis Méthot

4 June 2019 13:30

Danny Baker | Photo : Denis Méthot

The cost of medical insurance is growing at a rate that exceeds two to three times inflation and is expected to increase costs by 130% by 2025. In addition, 47 % of participants in a group insurance indicated they were dissatisfied.

How many companies would be in business in 2019 if 45 % of their customers were unsatisfied with their services, asked Danny Boulanger, president and ceo of Segic, at the opening of a conference on self-management and the health collective was held for the first time in Québec city on April 10.

“If one started with a blank page, is this the business model that we know in the field of group insurance would be the same ? A lot of people say that, probably not “, he stressed.

If all are probably aware of the problem and of the challenges that the sector faces, how many have undertaken transformations to deal with them ? The reaction of many, he observes, is that the oncontinue to maintain the current model while the tapering : you’re shopping insurance providers, and we are trying to bleed, it removes the direct payment, they remove services, transfer of costs from the employer to the employee, one cup of the insurer, and to complete, we cut the broker !

The CEO of the technology platform Segic has cited the example of the taxi industry, which has ended up hitting a wall because she has not been able to evolve and transform. The printers today are totally missing out because of the technological shift. The insurance industry collectively needs to do the same.

“What is meant is that the current model needs to mutate, pleaded Danny Baker in front of several dozens of representatives of the insurance sector collective gathered at the Hilton Quebec. It must reinvent itself. The models may not be permanent, they must migrate to top models. “

The benefits of self-management

The avenue that it offers, it is the self, which should not be confused with self-insurance, an aspect which has developed the speaker who followed him, Philippe Laflamme, director and head of the practice group insurance in Montreal at Eckler. But self-management and self-insurance are two completely different things, he recalled.

Self-management is a big advantage, said Danny Baker : I keep my data, no matter if I change insurer. But the need for insurance remains. Why ?

“The government of Quebec does not have life. I need the DMA, disability, long term, travel insurance, may be even to make cross-selling : we are 1 000 in our company : and then I have a best price for my house insurance and automobile ? In regards to health, I also need to potentially manage risk. “

“Self, I am protected to the level of risk, then we can go further and start talking about prevention and wellness. Everyone will have access to a family doctor, there will be a nutrition program, we will help people to ensure that they manage their finances, because I don’t want them to be stressed out at the office by their financial problems, but that they can be more productive “, adds Mr. Boulanger. There will be talk of physical activity, management policies, habits of life. The idea, summarized perhaps, it is to develop a toolkit in health to enable to support our needs.

The advantages for a lessee to plan

Self-management provides competitive advantages to the underwriters of the plans. It is an added value to the recruitment and retention of the workforce because this is still a little widespread. “In maybe ten years, everyone will offer the collective health. But today, it is a competitive advantage. Some companies will see it as a cost and treat it as an expense that they will try to reduce it. This is a bad approach, ” said Danny Baker.

“The collective health, it is an investment in an organization, not an expense,” he said. It is necessary to target the real issues of the organization, absenteeism, presenteeism, mental illness, chronic disease, productivity. It is also necessary to reduce associated costs, but do it with a strategy. “

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