Analysts Predict 5 Insurance Industry Challenges in 2023

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5 Areas Analysts Predict Will Challenge Insurance Industry In 2023

After two years of surviving – and in some cases thriving – during the height of the pandemic, insurers may be in for some rough times ahead. In fact, according to a predictive analysis from Forrester, insurance leaders in 2023 will navigate turbulence not seen since the 2008 financial crisis, especially in five key areas.

  1. Policy lapses will rise by 20% as customers tighten purse strings. 
  2. At least half of the top 10 insurers will roll out fee-based, value-added services.
  3. IT spend will rise by a modest 2% year-on-year – half of what tech teams had planned. 
  4. Digital teams will accelerate 75% of Straight-through processing (STP)  projects as regulators turn up the heat on AI. 
  5. A quarter of insurtechs will exit the market, either as wind downs or acquisitions. 

From Insurance NewsNet Dive deeper here.

Help Stop the CMS Recording Rule

On Dec. 1, 2022, S. 5149 was introduced that would exclude independent agents and brokers from the recording requirements in the Medicare Marketing Rule. Contact your Senators today and urge them to support S. 5149 here

Is CMS Recording Rule Causing You Problems? Let us know 

To share your experience, please respond to CalBroker’s survey: Call Recording: How Was Your Experience.”

Here’s the QR code to our very brief 4-question survey. Or you can link here to download and email questions to

No Cost Recording Solution Available from

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Agents and brokers who need a smart and efficient way to stay compliant can use the MedicareCENTER’s Call Recording program. It’s easy to seamlessly record all sales calls, store the recordings compliantly and download calls at any time, from anywhere. Available at no cost at


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Top 2023 Compliance Challenges for U.S. Insurers
Identified by Wolters Kluwer

The U.S. insurance industry’s top market conduct compliance challenges continue to relate to various claims handling requirements, including timeliness, required disclosures, along with payments and grievance and appeal processes—as well as underwriting, rating, marketing and producer requirements.  

This annual, comprehensive review by Wolters Kluwer Compliance Solutions  of U.S. insurers’ market conduct enforcement actions is based on public regulatory data from 2021, examining the market conduct actions of U.S. property and casualty, life, and health insurers, including exams and other enforcement actions.

For a listing of recent, top compliance issues determined in market conduct actions across the U.S. by state insurance regulators, link here. As in prior years, these issues are primarily found in insurers’ claims, underwriting and sales processes.

Read more – courtesy of Insurance NewsNet. Sample: Top 10 Market Conduct Criticisms for Life and Health Insurers

  1. Failure to adhere to required claims utilization review, grievance and appeal processes, including timeframes and disclosures


Finish 4th Quarter on the Right Foot
Prepare for successful year-end compliance and avoid costly mistakes

Ensure a smooth close to 2022. Watch the Q4 Compliance Summit video and learn from our expert on what needs to be on your group’s checklist based on employee count to help you steer clear of common pitfalls and avoid costly mistakes for Q4. 

  • Compliance for small, medium-sized and large businesses
  • Checklist of Compliance Actions for Q4 Renewals
  • Unique compliance needs for various group sizes

From isolved: Watch video here

6 Key Elements of a Good Strategic Plan

To create an effective strategic plan, do your homework, clearly define a goal, seek quick consensus on direction and condense the strategy to a brief document that is referred to every time new decisions are needed, writes John Spence. “All strategy is the allocation of limited resources into the areas that create the most leverage for the organization,” Spence writes. Full Story. 


Affordability Top Trend to Watch in Health for 2023

A heightened focus on affordability is among the seven health and well-being Trends to Watch in 2023, Business Group on Health announced today. Other top trends include a greater shift toward health equity and the ongoing need for health and well-being programs that help employees navigate life’s stressors. Insurance NewsNet link. 

UCLA Forecast: California Economy Still Growing, But Will Face ‘Headwinds’ in 2023-24

Thanks in part to the tech industry and anticipated defense spending, California’s economy will likely continue improving as the year nears an end, but national economic doldrums have tempered expectations in the state for the next two years, according to a UCLA forecast.

Small Business Owners Have Positive Outlook for 2023

Despite the challenges that all small business owners face in today’s economic climate, it’s clear that the majority of owners are optimistic about what the future holds.

A new report commissioned by Bank of America surveyed more than 1,300 small business owners across the U.S. While focusing on women and minority-owned businesses, business owners across the board are optimistic about the future.

The report also specifically addressed issues that women and minority-owned businesses continue to have. For example, 40% of Black business owners do not believe they will ever have equal access to business capital. 29% of women business owners, 27% of Hispanic-Latino business owners, and 22% of Asian-American business owners feel the same.

But women and minority-owned business owners feel even more confident about the future:

  • 72% of Black business owners expect revenue to increase
  • 71% of Hispanic-Latino business owners expect revenue to increase
  • 63% of women business owners expect revenue to increase
  • 62% of Asian-American business owners expect revenue to increase

Dive deeper. 

Higher Drugs Costs Accelerate 2023 Health Insurance Premiums 

Health insurance premiums and drug costs will rise a bit more than usual next year — up 7% to 8% in 2023, slightly more than the 6% average yearly increase seen over the past several years. The main difference with previous years will be higher prescription drug costs, which will jump 10%, the highest in the past decade. Read more here.

KHN: Haven’t Seen Your Doctor in a Few Years? You May Need to Find a New One

The argument for dropping the occasional patient makes some sense. Since many primary care doctors have a waiting list of prospective patients, removing those they rarely see opens up patient slots and improves access for others. Maintaining a workable number of patients is crucial, both for effective patient care and for the doctors. A major contributor to physician burnout is having more patients than you can deal with.

Rule of thumb: Patients not seen by their provider for three years or more are classified in the electronic medical records as new patients (rather than established patients), per Center for Medicare and Medicaid Services (CMS) guidance. American Medical Association ethics guidelines recommend that physicians notify patients in advance when they’re withdrawing from a case so they have time to find another physician.

Check out details here.

Here’s Why Diversity of Thought Is Often a Workplace Oxymoron

Organizations should define diversity to include not only Equal Employment Opportunity demographics such as race, ethnicity, and gender but also other differences in experience, skills, and perspectives. Perspective is the hook for encouraging and considering diversity of thought. Dive deeper here


NYT: Managing Anxiety and Stress
Stay balanced in the face of stress and anxiety with our collection of tools and advice.



  • Goldmine! Guardian Life + Spring Health Mental Wellness Webinar Series. Online live, and on demand. Next up: Dec. 14, 9 am PST, Grief & Loss: Productively processing strong emotions. Register 2022


2022 Association Holiday Parties

  • Dec. 12, 2022, 5:00-8:00 pm, LAAHU Annual Holiday Party, Banditos 11801 Ventura Blvd, Studio City CA 91604. $35 plus donation. Register.  
  • Dec. 14, 3:30-6:30 pm, GGAHU Jingle & Mingle Annual Holiday Party, Rooftop Walnut Creek, 1500 Mount Diablo Blvd., Walnut Creek. $30 Members/$40 Non-members. Register 
  • Dec. 15, 5-8 pm PST, Free NAIFA Holiday Mixer, Yard House, 100 E. Palm AveBurbank; Invited Groups: WIFS, NAIFA, FSP, CAL-CPA, LAAHU, IBASFV., 213-500-4946
  • Dec. 15, 5:30-7:30 pm PST, SVAHU Holiday Celebration, Hapa’s Brewing Company, 460 Lincoln Ave #90  San Jose. $20 or food donation. Register


  • Jan. 10, OCAHU Legislative Updates from Shore to Shore, East Anaheim Community Center. More info
  • Jan. 18, 10:30A – 11:30 am PST, CAHIP Annual Legislative Update Online Webinar. Register
  • Jan. 24,  10:00 AM to 1:00 pm PST, NAHU Live Virtual Corporate Wellness Certification. Register
  • Feb 5-8, You Powered Symposium hosted by E-Powered Companies, Miami, Florida
    An event for Bold Benefits Trailblazers. Register. One of the speakers is our own contributor Dawn McFarland! 
  • Feb. 9, 8:00 am PST, OCAHU Annual Sales Symposium, Spring Field Banquet Center – Fullerton. More info.
  • Feb. 23, 11:30 am – 1:30 pm PST by Zoom, 70th Annual Will G. Farrell Award & Leadership Recognition Event, sponsored by NAIFA-LA and FSP. Info:
  • Mar. 4,  9:00 am to 1:30 pm PST, by zoom: WIFS-LA Women’s Forum “Embrace Empowerment” Info:
  • March 13-15, Ellevate Women’s Leadership 2023 Summit, JW Marriott just outside Las Vegas. Register here. 
  • March 29-31, Self-Insurance Institute of America (SIIA) Spring Forum, JW Marriott Grande Lakes • Orlando, FL Register now 
  • April 11-14, Virtual Fourth National Medicare Advantage Summit by Global Health Care, Heritage Value-based Care Conference Series, Virtual/Online Live Video; Media Partners: Harvard Health Policy Review, Health Affairs and Inside Health Policy. Phone: (800) 503-0078.,
  • May 8-10, CAHIP Capitol Summit, Sacramento. Info.

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