February 17, 2022
Over the last decade, the healthcare sector has seen massive investment, innovation, and new entrants from the technology, and consumer sectors. The adoption of new technologies has been an important driver of change in the financial sector, leading to immeasurable efficiency gains. The insurance sector is no exception to such technological developments. Due to the possibility of new methods of service provision, easier data collection, fraud detection, improved risk identification, and mitigation measures, the insurance sector is now being more convenient.
With future technologies like personal health sensors and artificial intelligence, healthcare is already undergoing a much-needed overhaul that democratizes access to quality care. In the era of digital disruption, the integration of innovative technologies with health insurance has streamlined operations and improved efficiencies in the insurance space to make the digital health age more relevant.
Here let’s take a look at the technological advancements that will shape the future of the health insurance sector in 2022:
Robotic process automation (RPA) and AI integrates seamlessly with legacy systems and streamlines everyday business processes. RPA can be used to complement any individualistic element of insurance business operation, such as underwriting, policy management, claims, and regulatory compliance. Additionally, it can automate end-to-end processes with minimal human intervention. With the integration of isolated systems and optimization of business processes, the health insurance industry can increase efficiency at the grassroots.
From sensors to fitness bands, this technology is expanding the possibilities of home care and healthcare. With wearable technology’s evolution and expanding capabilities, they will undoubtedly transform healthcare and the health insurance industry.
By integrating wearable technology into their policies and coverage, insurance companies stand to benefit greatly. This includes:
Predictive and Behavioral Analytics allow health insurance providers to send preventive care notifications to their customers, determine what kind of insurance is suitable for a particular individual, and identify fraud. With health insurance, predictive analytics is more focused on preventing the final interaction and improving or optimizing the customer experience throughout the process. The best use of predictive models is to estimate insurance plans for individuals that are accurately priced according to their eligibility and previous behavior patterns.
As developers seek simple, standards-based solutions for interoperability problems, application programming interfaces (APIs) are becoming more popular in healthcare. Today, even insurance companies are moving towards an open API structure for the easy flow of information between systems. When it comes to patient eligibility, health data, digital claims management, etc., insurers need efficient integration, and APIs facilitate this flow of information.
The health insurance market is set to be revolutionized by mobile apps because these applications offer a variety of services. Using mobile apps to manage policies and settle claims boosts customer satisfaction levels, making it easier for customers to contact insurers. The use of these apps will open up multiple channels and entry points for data collection, which will enrich the database.
With the introduction of blockchain and distributed ledger technology (DLT), insurance technology expands its scope to encompass cyber security needs. Even though the technologies are still up for debate, Blockchain and DLT offer greater security, transparency, and immutability.
Health Insurance service providers can use Blockchain technology to cut down on administrative costs, verify payments made by third parties, protect from fraud, implement traceability for quick audits & inspections, smart contracts, easy payments, governance, risk and compliance management etc.
As per reports, the healthcare cloud computing market will be worth $55 billion by 2025. Considering scalability and storage, healthcare organizations are increasingly drawing towards cloud technology for its features like collaboration, reachability, efficiency, and security. Considering the increased importance of analytics and data management, health insurers should adopt a cloud-first mentality to streamline their operations, reduce costs, and better interact with their customers.
Internet of Things (IoT) remains one of the most prominent technological advancement in health insurance industry. With IoT devices, customers can give insurers a more accurate picture of their needs, and insurers can identify risks more accurately both at the time of purchase and in the long run. As 5G becomes more prevalent, insurers will be able to share data at lower latencies and offer real-time services to clients.
The majority of insurance companies only process 10–15 percent of the data they access through traditional databases. Utilizing the rest of the unstructured data to drive better business decisions requires advanced data science techniques like machine learning. There are many potential applications of machine learning in insurance: from identifying risk appetite and leakage of premium to expense management, subrogation and litigation, understanding risk, claims, and customer behavior, with higher predictive accuracy and fraud identification
The tech trends discussed in this blog will reshape the health insurance sector from top to bottom, creating opportunities and, in some cases, posing existential threats to traditional players. Since these shifts are already occurring, insurers should take action now to develop a more ambitious vision for how technology can improve your organization.