Insurers should use more data analytics and artificial intelligence for claims management.

If 2020 were any worse, the pursuit of 2021 looks like a nightmare. Health infrastructure not only in urban areas but even in semi-urban and rural areas has collapsed. The accelerated pace of the increase in the second wave of Covid-19 cases has impacted everyone in the country – in one way or another.

We have been highlighting for many years the underpenetration of life as well as health insurance in India. But the actions taken by the government and the Insurance Regulatory and Development Authority of India (IRDAI) will improve the reach of insurance products in the years to come.

The way the claims arrived for Medicare players and the burden on insurance companies – Medicare needs some overhaul. Once this ongoing crisis subsides, it is time to consider how to secure health insurance for the family as well as how insurance companies are reducing risk.

General health insurance companies have seen an increase in claims and in May non-life insurance companies received 14.8 lakh in claims amounting to around Rs 23,000 crore. As of the start of the current fiscal year alone, general insurance companies have received claims amounting to approximately Rs 8,400 crore.

The non-life insurance industry is increasingly concerned that its balance sheet may be affected by the novel coronavirus. The blow could be worse for specialist health insurance players in India.

Insurance players have long been engaged in price wars to raise premiums. The type of allegations that public sector companies have seen in the healthcare retail sector, as well as the business plans, are cause for concern. Insurance companies should opt for a combination of offensive and defensive actions to accelerate long-term recovery efforts.

Insurers should use more data analytics and artificial intelligence for claims management. At the same time, increase automation for strict underwriting standards. In India, even now, most general insurance companies are incurring and writing losses, which basically means claims that are higher than the premiums they have received.

For example, a Chinese insurance company named Ping An Life launched an underwriting risk model on its smart underwriting platform, with a 90.8% accuracy rate in identifying risks. In 2019, the platform served more than 18 million policyholders and approved 96% of policies through automatic underwriting.

The subscription period per file has been reduced from 3.8 days of manual subscription to ten minutes, thus optimizing the customer experience. Why can’t someone in India take some kind of technology models from all over the world and implement them in India for subscription purpose?

Health insurance contributes 20% to the non-life insurance business, making it the second largest portfolio in the sector. The Indian population covered by health insurance has been relatively insignificant, but things have improved as a number of people have switched to health insurance over time.

The PM-JAY launched by the government under the Ayushman Bharat initiative could increase the penetration of health insurance in India from 34% to 50%. The insurance regulator has announced various standard health insurance plans like Arogya Sanjeevani, Corona Kavach and Corona Rakshak.

In the second wave, we saw that medical bills were piling up, affecting the middle class the most. Personal expenses for Indians are among the highest in the world. It is now up to the policyholders to buy the health insurance policy and not just depend on the business plans and for the insurance companies to grow from now on they have to adopt the technology at a great pace. faster.

by, Rakesh Goyal Director Probus Insurance

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