How Technology Is Reshaping Healthcare Insurance Markets : Industry Outlook

  • Published on : March 20, 2020

  • Read Time : 5 min

  • Views : 4.8k

How Technology is Reshaping Healthcare Insurance Markets

Technology has brought welcoming change in the healthcare industry where the health insurance companies are already making big bets in creating new value pools derived from digital innovation.

More and more healthcare insurers are addressing the flourishing ecosystem of rising technologies and solutions that can help them increase the number of touchpoints with customers, prevent risks, and reduce the costs of healthcare.

As per the McKinsey report, some payers have started to spend almost half of their IT capital budgets on technology innovation; in a few cases, this comes down to several hundred million dollars annually. Like, venture funding in digital health has grown by an average of 32% per annum since 2011 and approached $6 billion in 2017.

These bold moves in investments have not only expanded current dimensions of digital value but have also sparked the next wave of healthcare innovation.

We’ve acknowledged several possible future scenarios based on the technology-driven disruption that are certain to empower healthcare insurance companies:

Machine Learning

ML has proved to be the biggest breakthrough in its ability to take data and leverage it to drive algorithms and show its predictive nature. For instance, health insurers can receive direct insight into the effectiveness of their wellness programs on various disease groupings and they can improve efforts for disease interventions. This way they can diminish claim costs, increase profitability, and launch more effective health plans.

Machine learning and analytics can also help insurers increase proactive member engagement, anticipate their service needs, and solve issues beforehand by bridging the communication gaps before even they get activated amongst the members.

Summing up, predictive analytics can improve efficiencies for operational management, help with discoveries, and increase insights.

Artificial Intelligence

AI in sectors like healthcare app development and healthcare insurance are helping care providers and insurers to efficiently screen cases, evaluate them with greater precision, and make informed decisions.

  • Risk Management- AI helps in modeling a more accurate level of risk to determine which members need the most care so they can pull the maximum cost and avail it to the beneficiaries.
  • Health Optimization- Using AI to optimize healthcare for chronic conditions helps insurers reduce consumer health threats and save claim settlement costs.

How does it happen?

By developing a healthcare app, patients can get a personalized checklist of the daily health activities they need to perform. The collected data on their medication is then transmitted to a clinical through a dashboard.

Big Data Analytics

On-demand health insurance with big data analytics can help beneficiaries make smarter financial decisions and cut wasteful spending. Since there is certain non-emergency care that can be planned in advance and unfortunately, it comes in unpredictable cost structures, in such scenarios big data helps for many good reasons; like in:

  • Identifying the highest value, lowest cost providers for several unplanned healthcare procedures;
  • Identifying the best prices for planned services while still providing holistic coverage for the ongoing treatment essentials;
  • Helps in placing price transparency in the centralized system of seeking care;
  • When the claims data spikes, it allows insights into a complex and highly variable environment.

Smart Personalized Health Insurance App

The burden of medical claims is swelling up. As a result, health insurers are spending their financial reserves on disease treatment instead of bringing solutions that help to prevent them.

The conventional set of formulas to collect health data will not work anymore. Simply by embracing smart technologies having personalization of your needs can help you out in rewarding healthy behaviors to your consumers and lower the medical claims.

Want to know how to use smart healthcare insurance apps to your advantage? Invest your time by consulting one of our business developers! We would like to know more about your use cases and manifest the rich features to be integrated into your healthcare insurance app development endeavors that best work for your industry.

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