Advances in Health Insurance Technoloy
According to the National Association of Insurance Commissioners (NAIC), auto and accident & health insurance are the types of coverage that receive the most complaints. NAIC cites the most common complaints;
- Payments are delayed
- Claims are denied
- Settlements are inadequate or unsatisfactory
- Policies are cancelled
- Problems on premiums or insurance ratings
If you’re currently an insurance policy holder, you may have been in similar situations.
The insurance industry is known to be quite sluggish when it comes to adopting technology. While most companies are striving to go paperless and harnessing technology to boost sales and profits, most insurance firms have maintained the status quo. This is probably due to the industry’s culture of tradition and the fact that most insurance transactions are based on face-to-face interaction. However, with more and more people preferring the convenience and speed of available technology, insurance companies need to invest in modernization if they want to remain competent. These existing technologies, when optimized, will change the insurance industry in the coming years.
Going digital has been the trend for a number of years, both for businesses and consumers alike. For insurance firms, making use of technology will streamline procedures and make them cost-effective. More importantly, it’ll enable them to be more customer-centric and deliver better services like:
- Lower premiums and fees
- Faster processing of claims
- More accessible communication channels for inquiries, complaints & feedback
- Minimizing fraud
As compensation, most insurers pay their agents 8% to 16% of insurance payments, which results in higher premiums. In addition, you may also be paying for annual charges and administrative costs.
With digitization you can deal directly with the insurance company.
One firm that has totally embraced digitization is the Lemonade Insurance Company. To sign up all you need to do is type in info online, mobile or desktop, no paperwork needed. Submitting claims is done in a similar way. Since there are no brokers and machines handle the entire process, premiums are lower and the process is more transparent and much faster.
According to Lemonade’s website, it only takes 90 seconds to get insured and 3 minutes to get paid… Wow.
Social Media… It can save your life!
You might be wondering if using social media would be an effective insurance strategy for seniors. Contrary to what most people think, seniors do use social media to interact. According to a study conducted by Pew Research, almost half (47%) of internet users ages 50-64 use social networking sites and 26% of adults who are 65+ do the same.
The devices in your hands are more than just technological tools; they’re social tools. Facebook and Twitter, for instance, have tremendously changed the way people interact & access information. Some insurance firms have started utilizing the info found on social networking sites to better understand their customers, stay updated on trends and client preferences, and lessen fraud. Others are also using it to be more responsive to clients.
As an insurance policy holder, you can make good use of social media too. These sites can be a means for you to contact friends and family members and inquire about insurance companies or share experiences.
My watch knows… EVERYTHING
You might have already heard of these innovative wearable technologies that perform certain functions. You can now wear patches that detect blood chemistry and transmit results to your smartphone. These devices are capable of tracking pulse & heart rates, temperature, and other biometric data. There’s even a sensor that monitors how good a driver you are.
Most believe that among the current innovations, sensors will have the greatest impact on the insurance industry. As technology advances, more sensors that provide more accurate data will be made available in the market. Soon, insurance companies will be able to keep track of the food you eat or if you engage in physical activities to maintain your health. In fact, an insurance company already exists where clients use an app to talk to a physician and get prescriptions without going to a clinic. The app also keeps a record of the patient’s medical history.
Technologies like these will enable insurance companies to better know the health condition and behavior of clients; therefore, policies will be based on more realistic information instead of general rules. As a customer, you can look forward to a future where insufficient coverage will be a thing of the past.
Updated: Oct 17, 2016