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Health Insurance Industry Trends of 2022 and Industry Outlook of 2023, Health News, ET HealthWorld

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Health Insurance Industry Trends of 2022 and Industry Outlook of 2023

By Ajay Shah

Recent times have seen a sea change in the general perception towards securing one’s health and healthcare at large. With the Indian insurance industry growing at a CAGR of 17 per cent over the last two decades, it is expected to continue its growth trajectory in the coming years as well. In fact, the standalone Health Insurers are expected to grow by over 25 per cent in FY22-23 due to the increased reception among the masses towards having health security. Growing demand for intelligent, seamless, and flexible service has made the availability of new products and models imperative and there have been several trends that have appeared in the year that has gone by.

Automation & Digitisation

The Indian health insurance industry is undergoing a digital transition as an outcome of technology adoption across different sectors. With the application of Artificial Intelligence and Machine Learning, claim servicing has improved drastically. In a bid to introduce decentralisation in the process, blockchain technology has been improved which now allows faster access to data, lower administration cost, and a higher quotient of privacy & security.

Further to this, with the usage of e-KYC processes, Health Insurance policies can be purchased from home through online portals, apps and websites. Tracking, measuring and controlling risk has also become easier.

Giving mental health insurance a priority

As per the directions by The Insurance Regulatory and Development Authority of India (IRDAI), covering mental illness has become mandatory for all health insurance companies from November 2022. Understanding the importance, Health Insurance companies are giving prime importance to mental health illness. This means that people who have a documented history of clinical depression, sociopathy or psychopathy, and other types of mental illness are also given health insurance by the insurers.

Professional consultations and access to meditation applications are now also covered under mental healthcare services.

Innovation in health insurance

As more and more people become aware of securing their health with a comprehensive Health Insurance policy, there are increased initiatives to innovate and launch more customer-centric products. This has led to the addition of various new age benefits like high Sum Insured options, global coverage, zone-based premium pricing, coverage for daycare treatment and OPD cover. Companies are investing in digital platforms that ease the process of claims for both the customer and the insurer and building AI & rules around it so that they can auto-adjudicate routine claims. The focus is to emphasize customer needs and offer customised solutions. Areas such as the rise in penetration of insurance in Tier-2 and Tier-3 cities, the emergence of a national health stack, and women-specific health insurance are also driving innovation in the sector.

The rise of Telemedicine

The National Teleconsultation initiative ‘eSanjeevani’ has enabled access to healthcare in the remotest of areas. In December 2022, this initiative crossed the milestone of 8 crore teleconsultations since its inception three years ago. As per the instructions by the Insurance Regulatory and Development Authority of India (IRDAI), claims related to telemedicine have to also be settled by insurers. Timely telemedicine has thus been made successfully possible by the collaboration of insurers and virtual care providers even in the remotest of areas in India.

Industry Outlook for 2023

As tech solutions are gaining ground in the health insurance industry, innovative solutions to provide a user-friendly, efficient and streamlined customer experience will continue to make progress. Use of novel technologies like the Internet of Things, Artificial Intelligence (AI), Blockchain, Machine Learning, and Big Data analytics is set to witness exponential growth.

In 2023, the cost of healthcare is expected to rise globally due to inflation, continuing economic uncertainty and increase in healthcare consumption. Willis Towers Watson, a British-American insurance advisor company has projected the cost hike to hit a 15-year high.

The health insurance industry in 2023 will be utilising its complete potential, creating more space for innovation and opportunities. As insurers become smart and swift, a lot of cumbersome processes are set to become easier leading to improved customer service.

Written By Ajay Shah, Director and Head – Retail, Care Health Insurance

(DISCLAIMER: The views expressed are solely of the author and ETHealthworld does not necessarily subscribe to it. ETHealthworld.com shall not be responsible for any damage caused to any person / organisation directly or indirectly)



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