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Insurance companies, by and large, are gate keepers to capital. The "best" have a lot of highly innovate algorithms, machine learning, and data collection, but
by 013a 9y ago
Insurance companies, by and large, are gate keepers to capital. The "best" have a lot of highly innovate algorithms, machine learning, and data collection, but they're all designed to maximize the profit of the company by accurately pricing premiums. An accurately priced premium means customers who don't their services less pay less; in effect, they're using data to increase premiums for the customers who actually use their service, while increasing revenue in order to fund their massive, inefficient bureaucracy.
- dekhn 9y agowe're talkign about HMOs here, not Insurance Companies. There is a big, big difference. Also, the companies aren't particularly inefficient, because that gets in the way of making profit.
- nradov 9y agoThe companies involved in this new venture were already self insured. They were paying for employee health care via third-party administrators, not buying insurance.
- ian0 9y agoThe last few insurance companies Ive delt with seem to act more like banks giving loans. Twice now, they have priced premiums for our company policy low in the first year before increasing them the following year based on how much was claimed. One agent actually admitted it was to "recoup costs". We joked that the meme where actuaries were being replaced by machine learning was actually just the insurer firing actuaries because they figured out they could just demand the money back from the client after a claim.