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A Smart Use of Data Analytics to Shape Insurance Plans

Omar Viveros - Willis Towers Watson
Leader of Health and Benefits
Home > Professional Services > View from the Top

A Smart Use of Data Analytics to Shape Insurance Plans

Eduardo Hori - Willis Towers Watson
Director of Health and Benefits
Eduardo Hori Director of Health and Benefits at Willis Towers Watson

STORY INLINE POST

Miriam Bello By Miriam Bello | Senior Journalist and Industry Analyst - Tue, 06/23/2020 - 11:36

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Q: What is Willis Towers Watson’s main contribution to Mexico’s healthcare system?

OV: Each year, the company grows at a double-digit rate as our business model goes beyond placing a medical expenses policy. Our consultancy services and the pursuit of a right solution for our clients have been a key determinant of this constant growth that translates to a true contribution to the health and insurance sectors. Willis Towers Watson is a consultancy first, and then a health insurance broker.

EH: By giving our direct support to employers, Willis Towers Watson provides knowledge and understanding to companies, which will eventually lead to better insurance policies for employees.

While the public sector focuses their services on supporting the population with no insurance or working in the informal sector, we are creating the right conditions for those in the formal sector of the economy.

Q: How does Willis Towers Watson match companies with their insurance policy objectives?

OV: We identify trends and include them in our annual report, called Benefits Design Practices (BDP), in which we compare a variety of medical expenses policies regarding the average sum insured, who are the beneficiaries, the co-insurance deductible amount and which hospitals people can access, among others factors.

BDP helps us determine the ideal plan for certain companies. Through data analytics, we can see the company’s claims rate and how it correlates to the policy plan to shape or change the design of our proposal.

The Global Benefits Attitudes Survey (GBAS) is another one of our studies. It allows us to compare the user experience and expectations of companies we work with. The results demonstrate that the younger the user is, the higher their expectations are regarding their medical expenses policy. Other results from GBAS tell us that the majority of employees are initially satisfied with the policies provided by their companies, but when they become users of the policy, results start to change negatively.

EH: Studies like BDP allow us to shape personalized plans for each company. It is important to remember that companies also need to remain competitive in matters of remuneration and benefits for employees. Our study shows how competitive the company is in terms of benefits and what kind of policy would be the best fit for it. For companies, it is also key to ask employees what they are expecting from the policy because results are based on their final experience. We still see a gap between what the company thinks it is giving to the employee and what the employee is expecting from the company. Once we identify the gap, we can find a correct solution for workers’ needs.

Q: How is Willis Towers Watson incorporating and encouraging the use of technology?

EH: Quality of information is key and we are pushing all players in the insurance sector to have clean databases, with enough and detailed information to find better solutions for them and their clients. While the insurance sector is very wiling and open to cooperate, there is still much to be done on the subject.

OV: The company is also focusing on digitalizing the operations normally managed by company implants. Willis Towers Watson has a platform where clients can access their plan’s information. This reduces their dependency on insurer implants and puts them a step closer to their policies and benefits without the need to call for support. This tool is very beneficial but not all employees can use it yet, which is why we still stick to traditional services.

Additionally, telemedicine use has grown as a result of the COVID-19 pandemic, which is driving us to start looking for companies that offer these services to recommend them to insurers and clients.

Q: How does Willis Towers Watson promote preventive healthcare among its clients?

OV: Preventive healthcare is key. Employers provide a medical expenses policy to their employees hoping they never use it, not just because of costs but because of productivity losses. In Mexico, many people suffer from chronic degenerative diseases and, whether the patient is the employee or a family member, this impacts productivity. The challenge here is to transform the employees’ mindset, so they can be aware of the importance of a healthy lifestyle. They can then take that knowledge home and share it. Implementing wellness plans contribute to this change and employers themselves ask us for these prevention programs.

EH: Things such as dental and visual care have recently become key requirements in policies and each time, employees are more aware of this added value and ask for it. People are gradually starting to ask for many preventive healthcare incentives, which is very new in the country. Minor medical expenses essentially cover this part and while their advances have been significant, there is still a long way to go.

Q: How do you expect the insurance sector to behave in the coming years, especially after the COVID-19 outbreak?

OV: There are already figures showing that the insurance sector has started to sell more individual policies and almost all companies have COVID-19 coverage. For an individual, the highest amount the insurance sector has paid is MX$15 million (US$675,500), which no one can afford by themselves. The media coverage of COVID-19 has made people more aware of having a proper insurance policy. This might be an extreme example but by seeing that number, people also see the evident benefit of paying for an insurance policy. The average payment for COVID-19 is around MX$500,000 (US$22,500) which is a very high amount to pay for any regular citizen.

Also, employers are now more appreciative of the policies they have right now, because the pandemic has made everyone dabble into their coverage and really see what they have and how they can use it.

EH: The mortality rate for a COVID-19 patient is around 11 percent. Meanwhile, it is reported as 6 percent of all patients who have an insurance policy. I do think this scenario will impact the number of insured people as this is something that can happen to anyone.

Q: What are Willis Towers Watson’s short-term objectives for the Mexican market?

OV: We want to support our clients as they head into the new normal. We already have studies that can help us to determine better protocols for companies’ reactivation plans. Based on international polls, we have been able to gather information and experiences to articulate recommendations to support and guide our clients. Methodology and the use of technology are our main focus areas, as well as encouraging a safe return for companies.

EH: We also want to ensure the sustainability of policies. To achieve this, we work with each company to create a competitive benefits plan that fits its philosophy and culture, that offers good coverage for their employees and that is also sustainable over the long term and profitable for the insurance company, as well. We would like to also encourage the use of technology and digital tools to exploit the benefits of each policy the employer offers.

 

Willis Towers Watson is an insurance brokerage and risk management company with offices in 140 countries. The company has investment, risk and reinsurance, human capital and corporate risk divisions

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