In 2023, our focus in the Life, Health & Pensions division has been on aligning strategy, innovation, partnerships, and employee development to position our business for sustained growth as we build for a future where we continue to provide our customers with the very best products in a market facing immense pricing challenges.
Objectives and achievements
In 2023, BF&M took another significant stride towards expanding our portfolio of employee benefits offerings in the Cayman Islands. Early in the year, we successfully introduced our Group Life and Disability product under the Island Heritage brand. We also renewed our focus on Pensions in the Cayman market, underlining our commitment to provide comprehensive financial solutions to our customers.
In the Bahamas, we implemented a strategic plan for the runoff of our individual life insurance business. In collaboration with our longstanding partner J.S. Johnson, we established a stable servicing framework that ensures our steadfast commitment to uphold our obligations to our customers with unwavering integrity.
Automating and streamlining customer service
Adapting to customer preferences through continuous improvement and ongoing automation was a cornerstone of our strategy for 2023, ensuring that our services are not just efficient, but also tailored to the needs and expectations of those we serve.
A key objective for this year was the streamlining of our Know Your Customer (KYC)/Anti-Money Laundering (AML) processes. We established an Anti-Money Laundering (AML) Hub in Halifax, integrating the new software system RTO into our business processes for periodic monitoring, streamlining the experience for our customers. We also restructured our customer service centre to better meet the needs of our customers, ensuring they remain at the centre of everything we do.
Market challenges informing future priorities
The rising cost of healthcare and health insurance premiums in Bermuda is a complex issue influenced by both local challenges and broader market dynamics. Factors such as Bermuda’s ageing population, a rise in chronic illnesses, and the necessity for overseas travel for specialised treatments have driven healthcare costs upward. This is exacerbated by Bermuda’s fee-for-service healthcare system, as well as overall inflation. Health insurance premiums have surged in response to these increased healthcare expenses, the rise in overseas treatment costs, and a growing demand for physical and mental healthcare services. The decline in Bermuda’s overall population adds to the problem, as the pool of individuals contributing to health insurance plans continues to shrink. In 2023, BF&M saw a 20% increase in the average amount per insured paid out in health claims compared with the previous year, highlighting the urgency of addressing this challenge.
At BF&M, we are acutely aware of the burden that rising healthcare and insurance costs place on our customers. We are actively implementing strategies to mitigate these increases and provide more affordable healthcare solutions, including negotiating discounts and lower rates from healthcare providers and forging partnerships with on-island service providers to reduce the need for overseas treatments.
Looking ahead
As we move forward, BF&M remains dedicated to exploring innovative solutions to the complex challenges facing the healthcare system in Bermuda. Our focus on preventative care, proactive wellness programmes, and strategic partnerships aims not only to mitigate the rising costs of healthcare and insurance for our customers, but also to contribute to a healthier, more sustainable future for our entire community. We are committed to keeping our customers at the centre of our efforts, working tirelessly to provide affordable, high-quality healthcare solutions that meet their ever-evolving needs.
Michelle Jackson
EVP, Group Head of Life, Health & Pensions