The Changing Face of the Health Insurance Sector: An Analysis of Trends and Innovations

For the longest time, the world felt like it was at a stand-still. Sure, there were technological advancements, but was there pace? Well, not so much! Then came the smartphone – and boom – everything changed. Since the very first smartphone was launched, till today, technology has engulfed every aspect of the modern life. Today, there are mobile and smartwatch apps that motivate us to stay fit and healthy. And what do you know, these advancements have impacted other healthcare sectors too, medical insurance included. So, it’s time to discuss the impact of technology in the healthcare sector, specifically with reference to health insurance.  

The Major Impact Of Technology In The Healthcare Sector 

With the changing times, our health care needs have changed too. Today, we can leverage technology to track what we eat, how much we exercise, the calories consumed and burnt, and so on. Plus, we can get quick access to health care facilities without ever stepping out of our home, evident through facilities like online doctors consultations, medical apps that deliver prescriptions at our doorstep, and digital payment processes.  

The good news is that the medical insurance sector is not far behind. It has also adopted technological changes by streamlining processes to improve the customer experience. Insurers today are mindful that customers are taking steps proactively to stay fit and healthy, and rewarding them for their efforts in various ways. So, it is safe to say that there has been a significant impact of technology on health insurance. Let’s now take a look at the top technological advancements in the health insurance sector. 

Transforming Health Insurance With Technology: The Latest Trends And Innovations 

Here’s a list featuring the top health insurance technology trends that have played a pivotal role in changing the face of the global health insurance sector: 

• Health monitoring with wearables  

The past decade saw the emergence of smartwatches, fitness trackers, and various health care mobile applications. These devices help with tracking activity levels and vitals and provide valuable data to users as much as insurance providers. Health Insurance companies are now encouraging customers to use these wearables and incentivizing them for adopting healthy practices in their daily routine. For instance, some insurers offer up to 30% off on premiums to policyholders who walk 10,000 steps a day.  

• Virtual consultations via telehealth services 

Gone are the days of having to visit your doctor physically. Health insurers have integrated telehealth services, including virtual medical consultations and second opinion facilities as part of their offerings. Today, you can obtain online medical consultations and treatments from the comfort of your home as part of your health insurance coverage. These facilities not only offer convenience but also reduce costs, while providing you with easy access to top medical professionals in the country.  

• The role of blockchain technology  

Among the technological developments in health insurance policies is the role blockchain technology plays in enhancing health insurance processes. Thanks to this technology, insurers have been able to streamline administrative tasks, enhance the security of your data, and prevent insurance frauds from occurring. Blockchain has further helped improve the claim filing and approval process and simplified data sharing, which has proved helpful for both, policyholders and insurers. 

• Prioritizing preventive care strategies 

One of the earliest strategies concerning innovations in health insurance is the role insurers have played in emphasizing preventive care to enhance their policyholders’ overall health, while reducing medical costs. Through online campaigns, insurers are encouraging policyholders to undergo routine check-ups, medical screenings, and vaccinations and helping them detect health issues in their early stages. This helps policyholders avoid hefty medical costs and enables them to lead long, healthy lives.  

• Incentivizing wellness program participants 

As mentioned earlier, health insurers are encouraging policyholders to adopt healthier habits. They offer incentives to policyholders who participate in wellness programs including nutrition counselling, gym memberships and smoking cessation programs, among other things. By offering these incentives on wellness programs, insurers are helping policyholders reduce their chances of contracting chronic diseases, which ultimately leads to fewer claims and reduced healthcare costs.  

• Using Application Programming Interface (API) 

An incredibly crucial tool for data managements, Application Programming Interface or API has helped the insurance sector streamline its processes. With this technological advancements in Health care, insurers are employing efficient methods to integrate, access, and disseminate data. APIs especially play a crucial role when it comes to determining a policyholder’s health information and making the digital claims management process efficient. 

• Leaning on Data Analytical Tools 

In the past, the process of underwriting an insurance policy was indeed a task. This has been simplified thanks to data analysis that has led to an enhanced insurance underwriting process. With a little help from predictive and behavioural data analytics tools, health insurance companies can send notifications about preventive care measures to their policyholders. These tools also help insurers gauge and create different types of health policies per the changing needs of their customers. 

• Leveraging Social Media Platforms 

Social media has been a part of our lives for the better part of the last decade and a half. Besides being a tool for information distribution, it serves as a data gathering platform, giving sellers insight into your lifestyle habits. It also helps sellers gauge your interests based on the advertisements you click on. For insurers, social media is a platform they leverage to educate customers, engage with them, and also to generate leads. They assess your interests and create targeted advertisements and products for you.  

• Applying Artificial Intelligence for Big Data processing 

The impact of technology on health insurance can also be seen in the way the insurance sector leverages Artificial Intelligence. AI helps insurers process enormous amounts of their customers’ data, while also enabling them to create personalized products for their customers. Additionally, AI has reduced the claim turnaround time significantly. Currently, insurers are leveraging AI to identify emerging health risks, which can help them create new, more relevant insurance products, thus reshaping the customer experience.  

• Offering Chatbot Services 

Like most industries in the financial sector, insurers also use chatbots to interact with their customers, especially for basic, everyday tasks like providing information about policies, assisting with the claim filing process, and answering similar queries. For insurers, chatbots serve as an efficient tool to reduce their employees’ intervention for the little tasks, allowing them to concentrate on the more vital tasks like providing quality customer service facilities, retaining customers, and other necessary support.  

The Impact of Technological Advancements on Insurers and Policyholders 

Technological advancements in the healthcare sector have proven to be a win-win for policyholders and insurers alike: 

• Health insurance policyholders and patients can access virtual health care facilities on the go and receive real-time data about their health conditions through wearable devices and smart apps. Plus, they are incentivised for participating in wellness programs. 

• Insurers too are benefiting from advancing technology. They can easily access consumer data, accurately predict their potential policyholders’ outcomes and determine premium rates accordingly. Moreover, they can identify and prevent fraud and save on administrative costs.  

The Bottom Line 

Change, they say, is the only constant. We must adapt to changes or risk being obsolete. Since technological innovations are at the front and centre of almost every industry, insurance companies must also behave like tech companies. Despite the impact of technology on health insurance, what makes this industry stand out is that it has maintained a level of humanness, which is crucial when dealing with sensitive health concerns. This is evident in the insurance sector’s attempts at offering personalized health policies, simplifying claim processes, and reducing red tapes that hinder processes.  

Combining Technology and Concern the Manipal Cigna Way 

If you are in the market for a health insurance policy, and are looking for an insurer that blends the best of both worlds – cutting edge technology and curated health insurance products, your search ends with Manipal Cigna Health Insurance. At Manipal Cigna, we offer health insurance policies with varying sums insured. Our policies are designed to accommodate your changing healthcare needs. Plus, we offer an array of perks and incentives to our customers who adopt good health practices. 

Get your health cover from Manipal Cigna Health Insurance today.