Key takeaways:
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Personalization is crucial: Digital health insurers must focus on providing personalized experiences and coverage tailored to individual customer needs to improve retention and loyalty.
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Embrace no-code tools: Utilizing no-code platforms can enhance speed to market, improve customer experience, and automate processes, ultimately benefiting the insurance business.
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Utilize wearables: Leveraging data from wearables can aid in underwriting risk, product innovation, and attracting younger uninsured prospects with personalized plans.
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Explore embedded insurance: Embedded insurance offers added coverage without additional hassle, reducing administrative costs for insurers and improving customer retention.
It’s no secret that digital technology has completely transformed how healthcare operates.
From providing healthcare services right at the doorstep of customers to leveraging AI to analyze and interpret vast amounts of data for making an accurate diagnosis — the digital transformation has happened at an unexpected pace.
But what does this mean for digital health insurance systems? What are the emerging trends you need to know? This is a question many health insurers find themselves wondering about.
Sounds familiar? We walk you through five key trends for digital health insurance systems to help you future-proof your business.
1 – Personalization is the way to go
Right from ordering a cup of coffee to opening an account with a bank — the new-age customer expects everything to fit their needs to the T.
When it comes to health insurance, the situation is no different.
The success of a digital health insurance system depends on providing customers with exactly what they need. With changing times, the relationship between the insured and insurer is moving away from being merely transactional, where the insurer’s role is restricted to getting premium payments and sending renewal notices.
On the contrary, digital insurers need to treat their customers as individuals who are looking for tailored experiences and coverage based on their unique needs.
Insurers who understand the individual preferences of customers and offer personalized digital health plans will have a better chance of getting more business. Those who can think beyond basic details such as gender, lifestyle, or age and dig deeper into other measurable health parameters will succeed in delivering superior customer experience, boosting customer retention and loyalty.
There are countless ways for digital insurers to personalize their offerings. For starters, health insurers can collect data from the social media profiles of their customers and use AI to evaluate their behavior. The information gathered can be leveraged for drawing up a customized plan.
2 – No-code product development
For an insurance customer today, the need for speed is real. Once they land on an insurance platform, they expect their user journeys to seamlessly lead them toward their end goal.
Even the slightest delay in the signing up process or filing claims increases the churn rate. And no matter how quickly insurers try to address the issue with the code on the platform, customers are unlikely to wait!!
To deliver better services and meet customer demands, digital health insurers must embrace no-code tools. Apart from helping insurers ship out better apps at a faster rate, no-code platforms also improve customer experience.
For instance, customers no longer need to call a dedicated customer care service to resolve issues they are facing. The platform can be trained to offer real-time responses to their queries. You can completely automate the system to ensure all grievances are addressed promptly.
Not convinced how a no-code platform can benefit your insurance business?
Check out Insured Nomads who wanted an efficient tool to improve their speed to market health insurance solutions. While other tools in the market failed to be configurable enough to address their specific needs, CoverGo’s fully configurable no-code platform allowed Insured Nomads to build and launch new health insurance products in days, gaining an edge over their competitors.
3 – The rise of wearables
Another trend in digital health insurance to watch out for is wearables. Wearables are not new. But their user base has gone up with more people opting for fitness trackers and smartwatches to keep a close eye on their health.
So how does it help insurers?
They get access to bespoke health and behavioral data which can be analyzed for underwriting risk. Data collected through wearables is more reliable compared to self-reported disclosures. Insurers can also utilize the data to reward policyholders through discounts on premiums or free yearly health checks, improving the overall customer experience.
Easy access to tech-backed data aids product innovation for health insurers — they can now design policies to target risks that were previously uninsurable and also attract younger uninsured prospects with personalized plans.
Lastly, wearable tech may identify potentially relevant information about an individual’s health by tracking their lifestyle which may have a direct impact on product pricing.
4 – Embedded insurance
Embedded insurance has been hailed as the future of selling insurance.
For health insurance, embedded insurance can unlock new opportunities for all stakeholders.
For the insured, receiving additional coverage without the hassle of purchasing a separate policy is a major attraction. For example, getting a combined plan that provides coverage for dental and vision health instead of purchasing separate policies.
For the insurer, embedding brings down administrative costs. No longer do they need to deploy resources dedicated to managing multiple policies for a single customer. Embedding also helps in improving customer retention, especially when customers view the embedded product as a value-add from their insurer rather than being arm twisted to make an additional purchase.
CoverGo offers 500+ insurance APIs that can be seamlessly integrated with any legacy or third-party systems. As a result, embedding insurance policies anywhere the insurers want is a cakewalk.
5 – Superior claims management
Claims management has always been the Achilles heel of the insurance business.
The rising costs and managing the complexity of claims have emerged as critical challenges for insurance players worldwide. A survey by McKinsey revealed that 1 out of 10 claims are usually incorrect. But the real challenge lies in successfully weeding out those claims, as you need an army of staff to painstakingly review each case.
An easy fix to eliminate repetitive and time-consuming tasks through automation of the claims management process. A rising trend in the digital health insurance space, automating claims management can help insurers achieve lower operating costs by eliminating siloed functions. It also helps to improve customer experiences by getting rid of the roadblocks.
A fully digital claims management system means very few touchpoints for human intervention. Insurers can transfer all claims to a cloud platform in real time where algorithms can start auditing the claim based on data available such as:
- insurance status of the claimant;
- coverage offered under the policy; and
- supporting medical records
With CoverGo, you get access to a modular platform that can be seamlessly integrated into your existing system for processing claims digitally. This is exactly what helped AXA Thailand, which was on the lookout for a scalable solution that could easily integrate within their existing system, minimize manual processes, and improve their claims process. Migrating to CoverGo’s claims portal helped AXA to automate part of the claims process and also train their staff to process claims digitally.
Not only is AXA able to pay out claims a lot faster, but it has also managed to clock in up to 80% cost savings on its claims operations process.
The need to keep up with trends is real
Health insurers have no choice but to transform themselves with the changing landscape. Staying relevant in a hyper-competitive market means being able to penetrate newer markets, launch products quickly, and implement scalable solutions.
When you think of succeeding in the face of fierce competition, nothing works better than strategizing in advance.
If you’re looking for a core end-to-end healthcare platform that can assist you to set up your digital ecosystem and help with product building, insurance distribution, and policy administration, look no further.
Schedule a demo with CoverGo right now.
FAQs
Personalization in digital health insurance systems is crucial as it helps insurers understand individual customer preferences and offer tailored experiences and coverage. This leads to improved customer retention, loyalty, and overall satisfaction.
Wearables provide insurers with access to reliable health and behavioral data for underwriting risk, product innovation, and customer rewards. They also aid in attracting younger uninsured prospects with personalized plans.
Embedded insurance involves integrating insurance coverage into other products or services. It benefits insured individuals by providing additional coverage without separate purchases and helps insurers reduce administrative costs and improve customer retention.
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