Insurers are shifting from traditional payment-delivery systems to a more consumer focused insurance-as-a-service model. According to dacadoo, this will result in 67% of insurers offering digital health engagement platforms.
The transition to a more consumer-focused model has come about as consumers become increasingly accustomed to online systems that give them instant access to personal information. In healthcare specifically, this looks like on-demand access to records, and tracking apps and devices that collect data about lifestyle choices.
One method of delivering an insurance-as-a-service model, is establishing a digital health engagement (DHE) platform.
dacadoo, an InsurTech software developer, pointed to a survey conducted by Peter Ohnemus’ non-profit foundation, the Digital Health Engagement Institute (DHEI). The DHEI surveyed over 1,200 insurance executives and professionals from North and South America, Europe, the Middle East, Asia Pacific, and Africa to determine how the industry integrates DHEPs into operations.
The survey found that 49% of responses already had DHE platforms in use, whilse 18% intend to roll them out within six to 12 months, and the remaining 12% do not yet intend to add such a platform to their services.
According to recent work by dacadoo, DHE platforms add value. The company said offering an online portal where customers can access or input health and behavioural information allows customers to deepen their relationship with their insurance company. In addition, these portals offer insurers a collection point for valuable data on individual health choices.
Moreover, they bolster consumer engagement, measured by logins, clicks, swipes or time spend interacting with features. Another benefit, which is less quantifiable, is how DHE affects behavioural choices, in turn affecting health outcomes that are related to lifestyle choices.
However, dacadoo said that due to the fact DHE platforms collect personal data, there are concerns over data privacy and ethics. Health data collection, use, and recording are governed by General Data Protection Regulations (GDPR) in the EU and the Health Insurance Portability and Accountability Act (HIPAA) in the US. According to dacadoo, developing a system that works within the current regulatory framework requires a high level of planning and system security.
Insurers have also express concern that the use of artificial intelligence could produce results that discriminate against particular demographic groups.
Therefore, simply offering a DHE platform is not enough, dacdoo stressed. It is important to rely on solid technology linked to good behavioural science, to build a platform that customers want to engage with.
There are clear cut benefits, the company continued, and these are likely to push more insurers to develop such platforms in the coming years. Managing the development of an attractive product whilst safeguarding data will be a challenge they face.
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