# How to Best Protect Assets Following Major Global Shifts Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-06-02 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Corporate Risk Solutions: Strategies for Uncertain Meta Description: President Kimberly Patlis Walsh highlights the use of Direct Primary Care to reduce health benefit expenses & offer cost-effective medical services. URL: https://financedigest.com/how-to-best-protect-assets-following-major-global-shiftshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1249609877-1736815662680-compressed.jpg) _![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/120-1736815662687-compressed.jpg)_ _By **Kimberly Patlis Walsh,** President and Managing Director of_ [_Corporate Risk Solutions_](https://urldefense.proofpoint.com/v2/url?u=https-3A__crslimited.com_&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=SuujhB1__jHoAWirG-5vESh_Tlo10Cs0yi_AWT2RnIY5i1QyhJU9vKx0xdf4vIYk&m=n6g5FMdT9WE8R7IQ_vsJhZYEe_IXvhhYitae9OhRJBQ&s=RzHh0EsFEzP9ms4GZLRl3WtAAI2hUld1wYPLWgg2UkI&e=) _._ As global financial, investment, and insurance trends continue to drastically shift with an economic and political scope, companies and their individual employees cannot help but focus on their respective plans to combat an uncertain future for their financial outlook and individual wealth accumulation. Both privately held and publicly traded corporations are focused on these outlooks and future operational and business impacts of the current monetary variables. Evaluating their ability to transfer, eliminate, accept, or mitigate risks and exposures, based on particular tolerance levels heightens another focus. Similarly, individuals are conducting their own evaluation of current and future pay, as well as financial stability by applying the known variables in an attempt to [predict their future income or asset value](https://www.financedigest.com/2021-predictions-realising-the-value-of-payments-transformation.html "2021 Predictions: Realising the Value of Payments Transformation"). Both US corporations and their individual employees are being bombarded by the exponential rising costs year-over-year (YoY) relative to health and welfare benefits – a [top five cost and rapidly climbing the ladder of corporate expenses](https://www.financedigest.com/top-expensive-car-brands.html "Top Expensive Car Brands"). The current environment is [forcing companies to look beyond traditional insurance](https://www.financedigest.com/the-glorious-twelfth-what-underwriters-should-be-doing-as-the-insurance-act-comes-into-force.html "The Glorious Twelfth: What Underwriters Should Be Doing As the Insurance Act Comes Into Force") products to help mitigate ever-increasing costs and uncertainty. With carrier indications of [double-digit medical inflation](https://www.financedigest.com/analysis-east-europes-party-is-over-as-double-digit-inflation-bites.html "Analysis-East Europe’s party is over as double-digit inflation bites") in the near future, companies will not have the ability to sustain this compounded level of increase YoY, which will force companies to ask the question “what should we do? - Taking on higher levels of stop-loss insurance, thereby taking on [greater risk](https://www.financedigest.com/with-greater-freedom-comes-heightened-risk-how-to-help-ensure-consumer-data-remains-secure-in-an-open-banking-system.html "With Greater Freedom Comes Heightened Risk: How to Help Ensure Consumer Data Remains Secure in an Open Banking System")? - [Reduce benefits offered to employees](https://www.financedigest.com/four-tips-to-help-reduce-employee-ghosting-in-financial-services.html "Four tips to help reduce employee ghosting in financial services")? - Increase [cost sharing to employees](https://www.financedigest.com/workplace-planning-software-cuts-costs-and-improves-employee-wellbeing-and-productivity-a-win-win-for-all.html "Workplace planning software cuts costs and improves employee wellbeing and productivity – a win-win for all")? - All of these or more? As [financial plans](https://www.financedigest.com/best-guide-to-build-a-personal-financial-plan.html "Best Guide to Build a Personal Financial Plan") are developed, corporations are forced to also look outside the box to divert or redirect claims away from the major medical plan offerings – every dollar diverted is direct savings to the company. Increasingly popular programs such as Direct Primary Care (DPC) are used to [fill that gap](https://www.financedigest.com/analysis-energy-hungry-europe-cant-look-to-u-s-shale-to-fill-any-opec-gap.html "Analysis-Energy hungry Europe can’t look to U.S. shale to fill any OPEC gap"). Management consulting firm McKinsey & Company recently [cited](https://www.mckinsey.com/industries/healthcare-systems-and-services/our-insights/patients-love-telehealth-physicians-are-not-so-sure) that telemedicine has increased over 38 times (3,800%) in participation since the beginning of March 2020 when the COVID-19 pandemic caused shut downs and isolations. DPC programs [pay for themselves and offer employees simple and cost-effective paths to obtain basic medical services while providing significant savings to employers](https://www.financedigest.com/uk-employers-see-slight-fall-in-pay-awards-over-2023-xperthr.html "UK employers see slight fall in pay awards over 2023 – XpertHR") by diverting basic medical claims. The program works in conjunction with the existing [major medical](https://www.financedigest.com/inovus-medical-set-major-expansion-following-six-figure-investment.html "Inovus Medical set for major expansion following six figure investment") plans so no current benefits are affected. “The success of these types of programs has been fueled by global events – including and especially the COVID-19 pandemic – over the last two years,” states Paul Selsor, co-president and pre-eminent [benefits broker](https://www.financedigest.com/how-choosing-a-compliant-broker-benefits-traders.html "How Choosing a Compliant Broker Benefits Traders") and consultant at FM Financial, a member company of Foundation Risk Partners. [“CFO’s](https://www.financedigest.com/can-cfos-balance-the-books-with-rising-operating-costs.html "Can CFOs balance the books with rising operating costs?") need to look at alternatives on how to combat these escalating costs.” Beyond [rising costs on health and welfare, businesses are also seeking tools to mitigate rising costs and diminishing protections](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?") relative to personal lines insurance and commercial insurance availability. The level of available protection for high-net worth homes, art, cars, planes and other luxury items has become precipitously constricted. Those in catastrophic zones that experience frequent tornadoes, fires, mudslides, hurricanes may notice billions of [dollars of loss](https://www.financedigest.com/dollar-retreats-headed-for-biggest-weekly-loss-since-mid-january-bitcoin-down.html "Dollar retreats, headed for biggest weekly loss since mid-January; bitcoin down") costs to both global insurance carriers and to individual insureds. At the same time, insurance capacity has shrunk significantly, especially in affluent communities, but the [need for other protections](https://www.financedigest.com/regulators-need-to-strike-the-balance-between-protection-and-strangulation.html "REGULATORS NEED TO STRIKE THE BALANCE BETWEEN PROTECTION AND STRANGULATION") has widened. The uncertainty surrounding the environmental and [financial risk impact](https://www.financedigest.com/how-mifid-ii-will-impact-financial-advisor-communications.html "HOW MIFID II WILL IMPACT FINANCIAL ADVISOR COMMUNICATIONS") on individuals and respective family offices is changing how foreseeable future budgets are created and how they are significantly changing decisions. Stress is compounding as risks evolve and continue to climb, with [assets becoming more digitized](https://www.financedigest.com/3-top-digital-asset-threats-facing-your-brand-in-2017.html "3 top digital asset threats facing your brand in 2017"), healthcare costs continue to surge exponentially with an aging average population, and volatility exists in virtually every market. What we are [seeing in rising](https://www.financedigest.com/ecb-governors-see-rising-risk-of-rate-hitting-2-to-curb-inflation-sources.html "ECB governors see rising risk of rate hitting 2% to curb inflation – sources") H&B costs are also flowing to other areas of protection, further complicated by reduced capacity,” added Selsor. High-net worth individuals, and their respective family offices, are now having to determine viability between self-insurance and/or other alternatives to more traditional insurance [protections that years ago were more easily secured](https://www.financedigest.com/5-ways-to-protect-your-company-from-cyber-security-threats.html "5 Ways to Protect Your Company From Cyber Security Threats"). On a broader scale, due to [rising costs](https://www.financedigest.com/uk-car-output-rises-in-august-soaring-costs-cast-shadow-over-recovery.html "UK car output rises in August, soaring costs cast shadow over recovery") and uncertainties of the future, over the last few years individuals and companies alike are leaving tax heavy states and flocking towards more tax friendly states like Texas, Florida, and Nevada. Companies and individuals cannot rely on their investment and insurance strategies of the past, rather they need to seriously evaluate if self-insurance or diversified [protections may work better into the future](https://www.financedigest.com/5-ways-to-protect-your-wealth-for-future-generations.html "5 Ways to Protect Your Wealth for Future Generations"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---