Understanding Gaps In The Health Insurance Ecosystem And The Role Of Technology In Bridging Them

India has a meagre penetration rate for health insurance despite the country’s widespread need for medical protection. Due to the Covid pandemic, people have realised the importance of health insurance over the past two years. However, the penetration of health insurance still has a sizable demand-supply gap. Although awareness is needed, most consumers need help accessing health insurance policies.      

About 50% of the population is covered by government-sponsored programs, which prevent patients from receiving the ideal medical care. In India, more people are covered by government health plans and health schemes. The need for technological interventions to increase insurance access for consumers nationwide is growing even as the government, insurance manufacturers, and distributors work hard to improve the penetration of health insurance.

Technology has recently shown its strength in the insurance sector. Since the last few years, the digital insurance model has experienced tremendous growth, which has streamlined processes for all stakeholders of the insurance category.. We have seen how the seamless end-to-end operation of the insurance life cycle has been made possible by digital technology.

Artificial intelligence (AI) and Machine Learning (ML) have helped the insurance industry process claims by reducing human intervention and turnaround time. AI/ML has assisted insurers in executing quick claim turnaround cycles, making claim settlements more accurate and error-free. AI/ML has helped consumers by offering fast, customised services and experiences, especially during purchases. Consumer insurance has changed due to claims processing through online document submission, claim settlement across all categories, and notification of claim incidents via WhatsApp. Due to the tailored experience, quicker settlement procedures, and the ability to review their claim histories and keep up with payment schedules, consumers also experience fewer hassles. One can also check the cost of premiums that they would need to pay by using a health insurance calculator.

Technology-based channels have transformed insurance into a personalised experience like online shopping platforms. Using big data analytics, technology has assisted businesses in better understanding the needs of individual customers and their families to provide more precise need-based insurance solutions. For instance, based on the consumer’s health history and his family members, an insurance advisor can help the consumer choose the ideal health insurance policy. As a result of this customisation, consumers have been assisted in selecting the perfect type of policy for their unique needs. All of this can be availed of when you renew your health insurance on time.

To improve the flexibility and accessibility of the health insurance process for consumers, the insurance regulatory body (IRDAI) recently introduced new policies. To increase insurance penetration in the nation, the regulator has been accommodating in letting InsurTech companies experiment with tech-based insurance products. The government’s introduction of the Health ID can significantly enhance the underwriting procedure in the health insurance ecosystem. IOT health devices are also essential in collecting big data, which aids underwriting procedures. #

# Visit the official website of IRDAI for further details.

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