Page 13 - Turkinsurance Digital Magazine

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Willis Towers Watson announced the 2021 results of
the Global Medical Trends Survey, which is conducted

every year between July and September. Two hundred
and eighty-seven leading insurers representing 76
countries participated in our 2021 survey. Global

results presented in the report have been weighted
using GDP per capita, which indicate that pandemic
has resulted in a decline in trends of 2020 compared
to 2019.

2020 was an unpredictable and challenging year for everyone. Results of the
Global Medical Trends Survey conducted annually by Willis Towers Watson
prove the accuracy of this statement. Participated by two hundred and eighty-sev-
en leading insurers representing 76 countries, the report states that 2020 was an
extraordinary year globally due to the pandemic, and most countries are seeing
a decrease in trend from 2019 to 2020. Some countries are even expecting a
negative trend for 2020.

The report says many insurers and employers are reporting a decreasing trend in
claims ratio in 2020, as most nonurgent treatments and surgeries were delayed
especially between March and August. In turn, these delays created a need for
some private facilities to make up for lost revenue in 2020. The Willis Towers
Watson COVID-19 claims modeler suggests significant volatility in 2021 results,
which are dependent on the impact of COVID-19 and whether or not a vaccine be-
comes available early in the year, who pays for it and the extent of its availability.
In addition, there is uncertainty about how COVID-19 testing and treatment costs
for 2021 will continue to be split between government, insurers and employers.

Those who contracted COVID-19 might create

uncertainty in the future health trends

The report underlines that further uncertainty around medical trend lies ahead
in future years as we start to see the true impact of delayed treatment in 2020
and the long-term effects on those who contracted COVID-19. Nevertheless, the
report says there is a silver lining there, as COVID-19 has greatly accelerated the
adoption and use of telehealth; which, in turn, could help to offset those potential
higher costs and provide a more efficient way for insureds to access and use health
care in the future. And it may also increase utilization due to ease of access.

Overall, the report expects projected global trend to drop to below 6% in 2020
before rebounding back to above 8% for 2021 due to the catchup on delayed