Digitalisation in Health Insurance

Insurance companies must realise that consumer's expectations are set depending on their purchasing experience in other sectors like the auto industry. Like that of the digital transformation that took place in the auto industry via GPS tracking systems, digital tools can provide health insurance companies with detailed information related to the consumer's health and lifestyle habits, and thus allowing the insurers to fix premium and insurance costs with increased accuracy. Using digital tools such as mobile apps can help insurance companies engage customers more effectively.

Nowadays, health insurance providers as well as consumers are equally embracing the use of digital tools like mobile health apps, health ATMs, online policy purchase, online premium payment, online premium calculator, and fitness bands. Digitalisation in health insurance affords the insurer and the insured a lot of benefits.

Health ATMS and Health Apps, a major part of digitization in health insurance sector

Health ATMs: One of the top health insurance companies in the country has recently launched Health ATMs in its partner bank branches. These Health ATMs will perform non-intrusive medical tests on customers and issue indemnity-based health insurance policies with a basic health cover. Biometrics will be in play for customer authentication. All you have to do is enter your mobile number, validation code, and biometrics in the Health ATM. The machine will measure your height, weight, body temperature, and blood pressure. The data will be used to calculate Body Mass Index (BMI), muscle mass, and bone mass. Data analysis in real-time will help get a health score. Based on this score, the Health ATM will issue a suitable health insurance policy to you.

Health Apps: New and advanced digital solutions are steadily emerging on the market. There are apps to help consumer's monitor their medication intake. The increase in accessibility of health apps is transforming the consumer healthcare landscape. Health apps track a consumer's health condition by monitoring heart rate and blood pressure. In other words, these apps help improve patient-care.

It is advisable to get a health insurance policy with a lifelong renewability option at a young age as the insurance premium increases with age, senior citizen health insurance plans can be restrictive, and you can get increased sum insured using accrued No-Claim Bonus (NCB) for every claim-free year over the policy term. Having said that, there is a low penetration of health insurance among the millennials in India. Keeping this in mind, one of the new entries into the health insurance industry in India, is targeting individuals below 35 years of age with its digital tools such as mobile apps, data integration, cloud computing, and wearable devices. The wearable device is integrated with a health app that makes note of the customer's health habits such as walking and number of calories burnt. The customer is rewarded for his or her good behaviour in the form of insurance premium reduction.

Benefits of using digital tools in health insurance

Digitalisation is already underway in life insurance and general insurance sectors like car insurance and two-wheeler insurance and in India. It helps insurance companies get ahead of their competitors. The advantages of using digital tools in health insurance include:

• Through digitisation, insurance companies and patients can get easier access to health data and thus, help improve patient care.
• Streamlining of health insurance processes such as sale, purchase, distribution, claim settlement, and grievance redressal.
• Health apps can be used to provide customer-specific insurance solutions. Consumers can have more control over their personal well-being using health apps.
• Insurance companies can integrate customer data into their internal mobile apps and make it easier for their insurance agents to provide an efficient customer service.
• Digitalisation can help maximise revenue for the health insurance companies. It can also help insurers provide an optimal customer experience through digitalisation.

To make a significant impact, digitization of health insurance policies and customer data, and data integration between hospitals and insurance companies are essential. Digital applications are being built to support insurance companies with their business process management and data workflows. Having an easy-to-operate app interface will help bring awareness about health insurance amongst youngsters. By embracing digitalisation, health insurance companies can keep up with the rapidly evolving needs of the customers in this digital world.

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