Health insurers working on data analytic skills for better pricing

Tags: Insurance
Stronger data bank and data analytic skills will help health insurance companies in better underwriting of insurance policies, which includes understanding risk profiles and product pricing. Strong data bank will also ensure bringing down fraud in the system. Health insurance companies are working together to strengthen data analytic capabilities, said a FICCI report.

“From collecting internal data independently, insurers are now slowly moving towards data sharing on a collaborative basis. However, with the increase in the number of competitors, there is a need for insurers to think out of the box and make a gradual shift towards more advanced techniques in data analytics that can help take the Indian insurance business profitably into the future,” said FICCI.

The Insurance Regulatory and Development Authority (Irda) has also been encouraging insurance companies to share data with and help create a data bank to help the industry. Not only will data analytics help improve existing business functions, it will also help forecast the future better and write more profitable business,

“In India, health information and data analytics is at a nascent but dynamic stage. Currently, most Indian health care organisations either lack data or have insufficient analytics capabilities to optimally leverage available data,” said FICCI report.

The industry body said that it is imperative for health insurance to innovate by focusing on new techniques around data analytics, like predictive modelling to improve the products on offer, thereby increasing the market penetration and product affordability for the customer. Effective implementation of data analysis methodologies can help track fraudulent claims and stringent measure may be taken to punish fraud claimants in order to act as a deterrent for future.

Antony Jacob, CEO, Apollo Munich Health Insurance, said, “The value chain of stakeholders in health care is a complex one involving multiple entities from payors at one end to customers and providers at the other. Due to simultaneous interactions between many independent entities, the health insurance segment becomes unique in terms of the quantum of data that these interactions generate.

shrutiverma@mydigitalfc.com

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