Digitalized Health Insurance: How Technology is Transforming Customer Experiences

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Highlights:

• AI and IoT enable real-time health monitoring and personalized insurance products
• Blockchain ensures secure, transparent claims and fraud prevention
• Digital tools improve efficiency, reducing costs and enhancing customer satisfaction

The health insurance industry is in the middle of a massive digital transformation, triggered by the increasing need for enhanced customer experience. 74% of customers claim they experience problems when trying to buy insurance via the Internet, while 88% say that they want products to be developed for them specifically. Still, 21% of customers think that insurer's services are not fully personalizable. These figures provide more compelling evidence that cannot go unnoticed by the insurers and the need to embark on the digital transformation agenda (1^✔).

AI in Health Insurance

AI is also one of the most vital digital technologies implemented by the health insurance industry. Machine learning analytics delivers relevant customer premiums and risk management plans with up-to-date information to insurance companies. According to the research, the implementation of AI and machine learning is projected to raise labor productivity in the sector to 35% by 2025. In addition, AI in platforms is of great value when it comes to customer relations by providing quick and efficient responses from webchats, and electronic assistants among others.

‘Did You Know?
AI-powered automation is reducing claims processing time by 40%, revolutionizing how insurers serve customers! #digitalhealth #medindia’

Blockchain for Health Insurance

Technological advancement specifically through blockchain offers transparency and security to the insurance process. According to a survey conducted in 2019, 66%of the insurers are embracing blockchain to enhance claim processing and fraudulent control. Blockchain effectively guarantees the secure transfer of health data between various stakeholders because the records cannot be tampered with. Also, blockchain supports efficient interaction between various healthcare stakeholders, secondary making communication of data streamlined.

Technologies Leading Change in Health Insurance

• Internet of Things (IoT): Smart objects allow for patients' health status to be collected, with real-time data such as vital signs, adherence to taken medications, and conditions of chronic diseases. Consequently, it will be possible for insurers to refine the rates and also to offer targeted care. Analysing current trends, experts predict that the count of smart health devices will exceed 50 billion within the year 2028, which should constitute a fantastic opportunity for insurers (2^✔).
• Cloud Computing: Cloud computing is an indispensable commodity in the insurance business due to its scalability and flexibility. Cloud platforms enable the possibility of accessing the needed data in real-time, and fasten the speed of claim handling. Currently, the COVID-19 crisis is driving more insurance firms to invest in cloud-based solutions, and studies suggest that an average of 55% of insurance companies will focus on cloud technology within 3 years to enable insurance digitalization initiatives.

Advantages of Digitalized Health Insurance

• Improved Efficiency and Reduced Costs: With AI, insurance companies can scale down their costs of operations in claims and underwriting procedures, while at the same time increasing their speed. The use of technology can shave between 30-40% off of the overall time it takes to process claims.
• Enhanced Customer Experience: Using AI and predictive analytics in developing insurance products creates a customer experience. According to the survey conducted in April 2021, as many as 70% of customers indicated their desire to buy insurance that meets their specific needs.
• Better Data Management and Security: Blockchain to guarantee secure transactions and free up cloud computing to store and safeguard personal health information from privacy and regulatory invasions. Due to cyber threats, the world economy lost $ 6 trillion annually, therefore emphasizing the role of effective cybersecurity (3^✔).

Challenges and Barriers for Health Insurance Tech

• Resistance to Change and Legacy Systems: Most insurance companies today are hardly modern in terms of IT infrastructure and equipment, which hinders the adoption of new technologies; 60% of responding insurers noted that their company's biggest problem in embracing digital change was that the current IT infrastructure was outdated.
• Cybersecurity and Regulatory Concerns: Insurers are particularly vulnerable to cyberattacks because they process a huge amount of personal data. The sector requires special attention to cybersecurity, which, according to the survey, has become a growing worry for insurers, as 58% of them cited the importance of data privacy and regulation as critical.

Digital health transformation goes beyond the mere adoption of technology as a process of reconstructing the health insurance industry. This means that by embracing AI, blockchain, IoT, and cloud computing, insurers are not only able to boost efficiency but also deliver on customer expectations in present-day society.

Research shows that companies that embark on digital initiatives are 2.5 times more likely to deliver higher value than competitors in terms of customer satisfaction and business returns. This shift is important for the long-term sustainability of any organization and especially for the future in the increasing technological environment.

References:

1. Role of digital health insurance management systems in scaling health insurance coverage in low- and Middle-Income Countries: A case study from Nigeria - (https:pubmed.ncbi.nlm.nih.gov/36204711/)
2. Medical Devices Industry in India - (https:www.ibef.org/industry/medical-devices)
3. A digital mobile health platform increasing efficiency and transparency towards universal health coverage in low- and middle-income countries - (https:pmc.ncbi.nlm.nih.gov/articles/PMC9005819/)

Source: Medindia

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