GIDEON Closes Insurance Risk Research Data Gap

Most traditional insurance policies provide solutions for business interruptions caused by physical damage. These policies typically exclude things like communicable diseases. This type of risk is critical to the overall health of the community, the health of workers, and the economic health of employees.

With the recent impact of COVID-19, change is imminent. In the future, governments and businesses are unlikely to underestimate the effects of an epidemic or a pandemic or the health risk and insurer risks. The industry has often overlooked this type of risk but we look forward to seeing that change. This is also why we are starting to see insurance companies reevaluate how they perform risk assessments related to infectious diseases.

However, for now, epidemic insurance is not a commodity product. It is very complex to calculate and requires a lot of market education.

In General, Health Plans and Medical Data Used By Insurance Companies Can Leave Some Important Data Behind

To model the frequency and severity of epidemic events, it is crucial to have good data on infectious disease outbreaks that occurred over the last decades.

Such a model was created and developed by a global provider of reinsurance, primary insurance, and insurance-related risk solutions Munich Re.

Munich RE used GIDEON’s outbreak data in their model. It improved the accuracy and depths of their underlying data and the quality of their results. This helps identify coverage gaps, helps insurers determine if their group has a need for health insurance reforms, and helps to plan ways to improve their client’s health. Finding holes in insurance coverage with health care data from GIDEON can help determine the risk of certain individuals and the risk of infectious diseases.

This is a brilliant development in a newly emerging insurance market. It allows insurers to close a significant coverage gap that traditional insurance doesn’t.