How Is Technology Giving The Health Insurance Sector A Boost?
Technology and the Internet of Things (IoT) are having a big impact on health care and health insurance, with research by Bain predicting that the revenue obtained from IoT and analytics alone will reach 22 billion by 2025.
In the health insurance sector, technologies such as artificial intelligence are enabling companies to sift through millions of pieces of data to find ways to reduce premiums, match products with their ideal target market, and generate new business leads. How can technology empower health insurance brands to deliver better service and build a larger client base?
Current leaders in the health insurance industry often ask beneficiaries to use wearable devices that track activity and calorie intake. Doing so enables them to collect vital information that can be used to offer reward programs. Various insurance providers are offering discounted rates on health insurance, and life insurance for diabetics. Discounts may seem small at first, but over the lifetime of a policy, consumers can save thousands of dollars.
It also encourages wearers to take vital steps to prevent obesity, Type 2 diabetes, stress, and other diseases and conditions linked to an inactive lifestyle or to a poor diet comprising high percentages of sugar and refined ingredients.
Wearable technology is easy to use and operate for adults and children alike. This is important for companies covering life insurance for children as well as adults, as it is in their interest to ensure kids stay healthy and active.
While children are generally free of long-term health issues that can affect their well-being, it is important to keep problems such as obesity and diabetes at bay. These diseases can shorten life while also wresting from its quality. Fitness watches and devices, once considered expensive gadgets, are now available in a number of different makes and models, many of which are highly affordable.
For health insurance companies, identifying and correcting incorrect claims can save their own companies and providers alike a significant amount of time and cut back on costs. Artificial intelligence can be used to sift through claims and accurately find and correct errors.
As stated in a McKinsey report, inpatient treatment takes up to 40% of a health insurance company’s total budget, but up to 10% of all claims received are erroneous. Artificial intelligence can go a long way towards reducing this margin of error through the use of smart audit algorithms.
Blockchain For Data Security
Blockchain enables health insurance companies to securely manage data so that patient privacy is maintained. This technology has additional benefits, including consistent accessibility, the fact that a central point of control does not have to exist, and public accountability.
Blockchain can be used for various processes, including embarking on contractual agreements and keeping completed contracts in a block that is only accessible to the relevant parties. Blockchain can also be used to reduce regulatory and compliance costs, to improve security, to optimize secure communication between companies, health professionals and customers, and to form new relationships with ventures.
Technology is enabling health insurance companies to offer a better, more secure service. It all begins with wearable technology, which enables companies to cater rewards to customers taking steps to lead healthy lifestyles.
Artificial intelligence is another important technology that can be used to discover errors and avoid unwanted costs. Finally, blockchain can help companies handle data more securely, giving specific parties access to data that is tailored to their needs. It can additionally create new synergies between health insurers and other ventures in a safe and reliable manner.