Technology has paved its way into each and every sector across the globe. Healthcare sector is showing high demand for advanced technologies to provide advanced and efficient medical services to their patients. However, in India, not much weight is given especially to healthcare insurance. Only 25 to 30 percent of Indians have health insurance. The insurance regulators are making constant efforts to increase the use of wearable devices that will help in keeping a track of health data on regular basis. This data will also benefit life and insurance policies.
Rising significance of technology in health insurance
In early 2018, Insurance Regulatory and Development Authority of India (IRDAI) formed a group to examine innovation in insurance involving portable or wearable devices. In considered smart contact lenses, fitness bands, implantable devices, skin patch sensors, and others. Accumulation of this data is also crucial for the health insurance sector in India and not only restricted to policyholders and insurers.
In the year 2018, between April to October, gross direct premiums underwritten by non-life insurers in the health segment went up to Rs 24,783.51 crore. This figure is taken from the General Insurance Council.
Health insurance holds the second position by having a 25.8% share in the market following the motor insurance sector having a 37.3% share. The inclusion of technology and the rising use of wearable devices will play a crucial role in risk assessment and improvement. Currently, point-of-time data through medical tests are not providing enough information for risk assessment.
In addition, inaccessibility of electronic health records or from any other common repository of health data further increases the process of risk assessment. Moreover, it will also help insurers in embracing wearable technology to improve claims like fraud detection, exposure, customer interaction and satisfaction, and costs.