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Digitization Wave in the Health Industry

Through digitisation, health insurers are able to reach out to a wider audience, craft tailor-made products and improve customer experience.

  • 14 Dec 2019
  • min read

One of the fastest-growing segments in India, the country’s health insurance sector has registered a compound annual growth rate (CAGR) of 23% for the last 10 years [1]. While growing awareness among the masses regarding healthcare is one of the major catalysts behind this growth, digitisation has further given the industry a major push.

The industry, too, is leaving no stone unturned to make the most of the digitisation wave to enhance customer experience and make health insurance plans available to all. Read on to know how the industry is leveraging digitisation to boost its penetration.

Selling health insurance plans online

A primarily agent-driven industry, health insurers today are banking on the increasing penetration of the web to sell policies, particularly to millennials. A survey found about 30% of people in the age group of 25-34 years [2] buy health insurance plans online.

Buying online health insurance has its advantages. You can fill up the proposal form, upload the relevant documents, pay the premium and you’ll be done. There are no intermediaries involved, and insurers save on commissions. As a result, you get to insure your health at an affordable premium

Improve customer experience

The digitisation wave is helping health insurers improve the customer experience. Today, you can gather information about a new policy, check the status of your application or claim, and renew the plan online in a few clicks.

By integrating advanced action-oriented chatbots on websites, health insurers are elevating the customer experience to the next level. The advanced chatbots, integrated with artificial intelligence and machine learning, based on the queries decipher what you are looking for and make suggestions accordingly. Today, they can also help you do mundane tasks such as filling up the proposal form

Better underwriting

The crux of insurance, underwriting helps in better risk assessment and compute premium(s) accordingly. With rising cases of frauds in the sector, insurers have tightened their underwriting process of late. However, they face a challenge to ensure that genuine customers don’t suffer due to frauds committed by others and get adequately rewarded.

Digitalisation is helping health insurers overcome this challenge with ease. With Wearable devices are going to rule the future of your healthcare health insurers can extract crucial information about your lifestyle, which goes a long way in risk assessment and compute premium accordingly.

For instance, if you are leading a healthy life, insurers can know it through vital data such as your BMI, heart rate, sleep hours, etc. In such a scenario, when you renew your health insurance policy, the premium amount will come down.

Craft tailor-made products and be competitive

Personalisation is the new-age success mantra. Every industry is looking to craft tailor-made products, as per the needs of customers, and strike a chord with the target segment. The key data of the target audience is aiding health insurers create products suiting the needs of their customers.

For example, health insurers can better understand the diseases affecting senior citizens such as Alzheimer’s and are coming up with specific mediclaim policy for this ailment. Some insurers are even adding coverage for this disease in their existing plans. Along with personalisation, it’s important to innovate.

Also read:

With digitalisation, health insurers can develop and add new products in their portfolio. This is aiding them to maintain a competitive edge.

To sum it up

As India marches ahead towards a cashless economy, with Digital India becoming a buzzword, the health insurance sector is on the cusp of a major change. Medical inflation is one of the highest in India, so it’s imperative to avail a health insurance plan to prevent out-of-pocket expenditure in case of a medical contingency.

Also, it is essential for the insurer to reach out to the masses and offer readymade solutions at a cost-effective price. Owing to India’s rapid growth in smartphone and internet markets, the use of mobile apps, telemedicine and online health services will go up by several notches in the coming days,. This will allow health insurers to enhance their offerings and positively impact their bottom-line revenues in the long run.

Related Article:

A Slow but Gradual Increase in Digitisation of Insurance Policies
Wearable Devices are going to Rule the Future of Your Healthcare: Read To Know How

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