Home > Property & Casualty > Internet conglomerate enters the insurance market

Internet conglomerate enters the insurance market

medicalsecurityThe latest news that Google is investing in consumer health insurer, Oscar Health Insurance, will no doubt have traditional health insurers worried.  How worried is the question.

Stories outline that Oscar Health will deploy wellness techniques including free fitness devices and more telemedicine while focusing on becoming more of an internet service than traditional health insurers.  However, these are hardly big new discoveries.  Nor are there any barriers keeping traditional insurers from copying the tactics if they work.  

While there is a bit of wrist appeal in an Apple watch or a Fitbit, neither this, nor any other wellness techniques have been shown to cut costs or bring a lot of value to consumers.  Not yet, anyway.

There is one heel in the Achilles world of big health insurers, however.  That is their pursuit of getting bigger through mergers.  If the big guys take their eye off the ball trying to create an even tighter oligopoly, they will take it on the chin from someone.  Maybe Google/Oscar.  Maybe a company yet unborn.

About the Author

Phil Edmundson is the Area Chairman of Gallagher WGA, insurance brokers and consultants for businesses, with over 30 years in the insurance industry. He manages strategy, talent acquisition and development, and management / acquisitions at Gallagher WGA.

617.646.0229 | PEdmundson@wgains.com | Connect with Phil on LinkedIn |
Follow Phil @PhilEdmundson

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