[medinformatics] Online Insurance Bidding Gets a Boost from Scandal

[Medical Informatics News]

Insurance industry analysts say an ongoing insurance bid-rigging scandal, combined with rising
health care costs, will build demand for online bidding on insurance policies. From AP/San Francisco
Chronicle:


”This is really about putting the tools into the hands of decision-makers and returning the broker to the role of a
trusted adviser, rather than someone who’s just placing the money or making the purchase order for you,” said Rebecca
Wettemann, vice president of research at Nucleus Research, which advises
companies on financial and technology issues.

A recent investigation by New York Attorney General Eliot Spitzer has drawn scrutiny of traditional methods
corporate clients use to select insurance coverage and renew policies. Typically, companies entrust brokers who use
e-mail, phone calls and faxes to secure bids from insurance carriers, negotiate changes, report back to their customers
on the bids and complete deals.

Companies like Waltham, Mass.-based IE-Engine and San
Francisco-based BenefitPoint say their software brings greater efficiency
and transparency to the process, enabling corporate clients to track which carriers receive and respond to requests for
proposals.

Wettemann said, “Rather then spending time crunching a lot of numbers, brokers can focus on how various policies
fit a client’s employee base, the quality of service and health issues. Smart brokers will recognize that this (online
bidding) is a way to focus on the higher-margin, more value-added part of their business.”

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