The Digital Shift: How technology is transforming health insurance in India?

Technological advancements are transforming every industry and the insurance ecosystem is not left untouched. Digital integration into standard and vital Health Insurance processes, such as policy issuance, claim management, and renewal process, has streamlined things, ensuring a seamless customer experience. Acting as a powerful tool, technologies like big data, artificial intelligence (AI) and machine learning (ML) are reshaping the insurance industry for the better. Read on to know more.

[CAPTION]Technology is enhancing health insurance experience for customers.[/CAPTION]

Digitalisation in Health Insurance

The rising demand for Health Insurance can be attributed to the efforts of the new-age insurers to expand insurance accessibility, enhancing simplicity and transparency. And, this has led to the adoption of disruptive technologies to stay ahead of the competition. From underwriting to risk analysis, digitalisation has taken over many insurance processes.

AI-powered chatbots or virtual assistants have helped insurers achieve the feat of personalising customer service. Further, AI algorithms coupled with ML models are making underwriting an efficient and accurate process, enabling insurers to customise products based on the customer’s risk profile. Besides, automating manual processes is not only offering a hassle-free experience to customers, but also increasing operational efficiency.

Tech-enabled Trends in Health Insurance

Here are some technology trends that have disrupted the Health Insurance domain:

• Big Data Analytics: Helping insurers to know their customers better, big data has come across as one of the most valuable tools. It helps to price and underwrite more accurately and identify fraudulent claims. These days, many Health Insurance providers are associating with wearable (Internet-of-Things-based activity tracker) companies to collect the right data to better understand consumer needs and behaviours. This also lets them provide customised advice, coverage plans, and pricing. Notably, big data helps store huge amounts of data, maximise policy renewals, speed up responses to customers, and access archived and real-time data.
• Cloud and AI/ML: In order to future-proof themselves, insurers are looking for cloud-based solutions to enhance their scalability and agility. Besides, health insurers are adopting AI/ML and advanced analytics to improve their service architecture and enhance customer experience. AI/ML-enabled tools not only help in guided selling and effective outreach, but also identifying fraud and related irregularities.
• Remote Patient Monitoring: RPM is being employed by health insurers to bridge infrastructural gaps. When it comes to chronic disease management, RPM solutions, for example smart glucometers, are extremely helpful. This also helps reduce the frequency of hospital visits. Nowadays, insurers are partnering with wellness platforms and digital therapeutics firms to provide wellness programmes, such as smoking cessation, and disease and stress management.
• Interoperable Digital Health Records: Healthcare providers and insurers must consider adopting standard code sets and data exchange frameworks. To begin the interoperability journey, it is vital to evaluate data governance policies, system capabilities, and the infrastructure. Using API-first strategy or natural language processing (NLP) technologies not only helps maintain digital health records without any hassle, but also accelerates clinical decisions, improves comprehensive patient care and enhances clinical documentation.
• Mobility Solutions: Mobile-ready solutions are the way forward for Health Insurance companies when it comes to service support. They help policyholders make policy payments, submit claims, and get online consultation. These solutions also ensure the delivery of prescription information to pharmacies in real time.

Collaborative Initiatives by the Government

As the Government of India plans to achieve universal health coverage for all by 2030, it is imperative to adopt digital tools and strategies to reduce premium amounts and enhance care delivery.

In order to achieve the goal of universal health coverage, India needs an interoperable digital ecosystem. And, Unified Health Interface (UHI) is just what’s needed. Notably, it is a central government initiative under the Ayushman Bharat Digital Mission (ABDM). Under this scheme, registered Indian citizens get a unique 14-digit health ID, called Ayushman Bharat Health Account (ABHA) number, which facilitates easy access to health history and medical records throughout the country.

Moreover, the Insurance Regulatory and Development Authority of India or IRDAI is urging insurers to adopt digital tools for cost containment. It has suggested reinventing shopper portals, exploring new-age distribution channels and automating lead capture. Emphasis has been placed on telemedicine and home healthcare to prevent unnecessary emergency room visits and costly hospitalisation.

[CAPTION]Insurtech is reshaping the health insurance industry.[/CAPTION]

Conclusion

The adoption of big data, AI/ML, automation and other digital tools has transformed the way health insurers operate in India. From democratising health insurance and serving beneficiaries better to reducing costs and improving overall health outcomes, tech enablement in healthcare insurance has created a good space not only for insurers but policyholders too. If you are planning to buy Health Insurance, then reach out to ACKO, a digitally enabled insurer.

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