Technology has transcended traditional boundaries. In this hybrid world, traditionalism is rendered obsolete as we embrace the limitless possibilities of technological advancement. We’re in an era of rapid technological advancements and shifting consumer preferences and with it, the landscape of traditional health insurance is undergoing a profound transformation. What was once considered the standard model of coverage has evolved into a dynamic ecosystem characterised by innovation, customisation, and adaptability. Healthcare innovation is developing at an unprecedented scale and with it so are the customers.
Rise Of Personalisation
In the past five years, customers have evolved into more discerning, self-aware individuals who prioritise simplicity, personalisation and control. This newfound maturity has empowered them to assert greater control over their needs and prioritise their health and well-being. Combined with the significant transformation in India’s digital landscape, modern customers are embracing digital channels to fuel their heightened awareness of healthcare and their well-being. There is a clear shift in the buying behaviour as well. Customers desire 24-hour access, fast delivery, and clear and relevant information on products and services.
Embracing Digital Transformation
Sensing the paradigm shift, the insurers have prioritised digitisation and customer satisfaction. As per studies, automation can reduce the cost of a claims journey by as much as 30%. Insurers are putting customers in the driving seat, letting them steer by offering a plethora of products and services like policy comparison and allowing them full control of their journey and pace. Gone are the days of agents knocking on doors, thick piles of paperwork and the exhausting claim process. Modern customers want insurance shopping simplified, unencumbered by human interference.
The notion that one-size-fits-all is thrown out of the window. Armed with data and information extracted from multiple resources like hospitals, mobile apps, and wearable devices, insurers are getting to know their customers better. They can accurately price and underwrite by studying their customers’ behavioural patterns and offering them tailored products specific to their needs.
Certain insurers leverage data trackers embedded in devices like smartphones, fitness trackers, and smartwatches to tailor their health insurance offerings. Taking it a step further, they proactively promote healthy lifestyles through notifications and health alerts.
Integrating Value-Based Care
The need of the hour is value-based healthcare. In the traditional fee-for-service model of healthcare, providers are reimbursed based on the volume of services rendered, incentivising quantity over quality. However, a growing body of evidence suggests that this approach may not always yield optimal outcomes for patients or insurers. As a result, there is a growing emphasis on value-based care, which prioritises quality, efficiency, and patient outcomes. By incentivising providers to deliver high-quality, cost-effective care, value-based arrangements have the potential to improve healthcare outcomes, reduce costs, and enhance the overall value proposition of traditional health insurance.
“Sweden is widely recognised as a frontrunner in Value-Based Healthcare (VBH), boasting a meticulously executed outcome-based compensation system across 21 regions. This system has been particularly successful in specialised care areas like hip and knee replacement as well as spine surgery.”
In conclusion, the evolution of traditional health insurance is a testament to the industry's capacity for innovation and adaptation. By staying ahead of the curve and leveraging data-driven strategies, insurers can navigate the complexities of the modern healthcare landscape and deliver greater value and peace of mind to their policyholders. As we look to the future, one thing is certain: the only constant in traditional health insurance is change.
