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Why is Insurance so Confusing?

This is a question a lot of us ask.  Why is insurance so damn confusing? There are a myriad of reasons to answer this question.  Some legitimate, healthcare can be complex.  Others, not so much, this is the way we have always done it.  The latter being one of the most dangerous phrases uttered.  Now, don’t get me wrong, there is something to tried and true but that shouldn’t be an excuse for not looking into making things better.  And for those that get a little anxious hearing “different”, this could be as simple and changing the verbiage you use to explain something to make it more widely understandable.  Let me give you an example, in the insurance industry you’ll hear the term “spec” a lot (and I mean a lot). Hey, I am part of that industry, so I am poking a little fun in my direction as well.  What does spec mean? Google that, “about 449,000,000 results”.  Let’s take it down another notch, now we’re getting somewhere, “about 247,000,000 results”. If I get really specific (hint “specific”) let’s look what “spec” means when you are looking at self-insurance, “about 149,000,000 results”.

Spec is an abbreviation for Specific Stop Loss which decoded further is coverage that provides protection for the plan against a high claim on any one individual plan participant. This is protection against an abnormally high single claimant rather than abnormal frequency of claims for the entire group.

I could do this for any number of words we use, heck, I am still learning new words all the time.  I think some of them we make up as we go.  Point is, insurance can be confusing, thus making it more complicated.  As a Business owner, HR Professional, CFO, or whomever gets the responsibility to organize this for your company, it can be A LOT and there is A LOT on the line.  I know, I ran benefits for years inside of the companies I served. There is no one place to learn about it, and it takes years to get really good at it.  If you don’t keep up, it changes over night and you’re right back where you started (googling “spec”). 

There are great people out there to help you with this from your brokers (yes, there are great ones out there, so don’t let the term broker scare you away from working with one if it makes sense for your business), PEO’s, Carriers and people like me who genuinely like to work with a community of people to make insurance less complicated and less stressful.  Let’s be honest, in a company, most employees aren’t concerned with what goes into it, they just want to know when they need it, it’s there, it’s economical and it will protect them and their family.  I’m running out of space on my word limit so I will save my soap box for why insurance is so important and why we should care more about fixing it.  I can really get going on that topic.

Bottom line, insurance doesn’t have to be confusing with the right support.  It can take some time to find the right support and I encourage you to take your time to find the right support.  It’s out there!  It could be True Captive or a variety of other amazing people out there who have the same passion and motive to help you and your company provide great, uncomplicated and less confusing insurance.

David Voorhees,
Founder and CEO