As the COVID-19 situation is changing on a daily basis, the impact to the insurance and reinsurance markets is not yet fully known. However, given the significance of the developments, Guy Carpenter provides our view of how COVID-19 may impact the medical (re)insurance market.
Payer-provider partnership launches have leveled off over the past of couple years, with an ongoing focus on deeper collaborations still the norm. 2019 saw 16 launches, 12 joint or co-branded. 2020 so far has seen 22, 20 of which explicitly mention value-based compensation.
The past couple of years have also, however, seen a leveling of activity, style and approach, according to Oliver Wyman colleagues Tomas Mikuckis, Partner, Health & Life Sciences, Zhe Yu, Associate, Health & Life Sciences, Shyam Vichare, Principal and Maria Chen, Senior Consultant. Mixed track records of success suggest there’s no formula a model can adapt to achieve big nationwide scale.
COVID-19 may spark the tipping point. The pandemic and its accompanying economic downturn may mean partnerships are built straight from purpose-built solutions – ones tied to buying historically untouched or unconsidered market segments as a springboard for hot innovations to come.