Dixon Gillis was recently interviewed by AM Best in the July installment of their Issues & Answers review. In it, Dixon answers questions about new opportunities and emerging risks in the marketplace, particularly after the pandemic. The following are excerpts from that interview.
Dixon Gillis, CEO of A-G Administrators, says finding the right solution for that first-dollar medical payment for brokers and agents can help deliver a higher level of excellent service to their clients.
Is there a coverage gap issue when it comes to accident and health insurance?
There is a coverage gap. First, and foremost, with the Affordable Care Act, we know that consumer driven health care plans have created more exposure of first-dollar costs for claimants for slip and fall and accident coverage than it had before. There’s a very big exposure for brokers and agents to potentially have liability claims hit their books prematurely. We feel a well-designed and customized accident solution at the forefront of a GL program can help reduce those gaps. Traditionally, many GL programs have exclusions that could be applicable to very frequent scenarios, such as athletic related injuries.
Has the pandemic contributed to that coverage gap?
The pandemic has contributed to this coverage gap in accident and health insurance; the overall record high unemployment rates have contributed more financial exposures to our programs. For example, a student or student-athlete attending school might not have the same coverage in place that they had before, and this could put an unnecessary financial exposure on the secondary program of an institution or the GL program of an institution. It’s always important for the agents and brokers to make sure that they have coverage from first dollar appropriately secured, which is what we do here at A-G Administrators.
What should agents and brokers know about the coverage gap?
There are customized solutions for accident and health insurance that can fit into many GL programs; these solutions provide first-dollar coverage which helps manage the costs of those claims. By being proactive, agents and brokers can partner with A-G on a customized solution that will help preserve the long-term financial sustainability of their clients.
What ultimately needs to be done to close the gap?
Agents and brokers should definitely make sure they have a fully customizable accident medical program in place that complements their client’s GL program. This solution will help reduce a lot of the upfront costs that their clients may be facing right now.
A-G Administrators believes that behind every great athlete is great accident and health insurance coverage.Learn more or request a quote today.