The year 2015 was a good year for health insurance players. The government made several positive inroads in raising awareness of the health insurance segment by increasing the tax deduction of premiums and focusing on healthcare facilities for all. Raising FDI in insurance to aid the faster growth of the industry through larger investments, is truly noteworthy.

In terms of products, health insurers this year focused on revitalising their existing product portfolios and some health insurance companies also created customised disease specific solutions, keeping in mind the various needs of the Indian population. Today, the customer understands health insurance and is quite mindful of the value and experience of services rendered. The strong focus accorded to the segment by all players in the industry over the past year will prove to be a boost for the segment to continue to grow in double-digit figures.

As in other industries, customer-centricity will be the way forward for health insurers as well to move on the path of profitable growth. In 2016, health insurers should focus on uncomplicating health insurance so that consumers find products that suit their dynamic needs.

Keeping in mind the growing awareness that consumers possess today, health insurance providers must continue to offer them the freedom to choose any type of healthcare facility anywhere.

The online space is witnessing tremendous uptake as more consumers are going online. The health insurance segment should follow suit and also step on, to try and offer products exclusively for the online segment. With suitable underwriting norms, basic health insurance policies could be made available online, without health checkups, but with self-declarations of health status.

Health insurers should also explore ways of increasing customer engagement across the digital channels, in addition to investing in sustained efforts on uncomplicating health insurance to offer simple products and quick services. As the Internet has begun to play a vital role in decision making for all types of products and services, people view reviews posted by others on their purchase decisions and what they perceive to be good or bad. Acceptance of the digital platform amongst people of all ages also enables insurers to use a swift marketing tool to help customers with comparison charts to make rapid decisions.

Insurers in this segment should focus on simplifying the entire process of purchase and claims for customers. Health insurers must develop the technological capability to close an insurance policy purchase online. With mobile apps helping reduce the amount of paper businesses use, it should be seen as vital for insurance companies to use not only just as a marketing tool, but also as a business process function. With a burgeoning Indian smartphone market, coupled with the increasing acceptance of mobile applications that simplify transactions such as bill payment, financial management and information aggregation, etc., the insurance industry must find a way to create applications that help in making all processes paperless – right from pre policy checkups to buying policies to claims
settlement.

Finally, the industry must focus on the immediate development of robust data analytical tools that will help insurers understand consumer behaviour better to create more customer friendly policies. Decision making patterns, processes related to claims, in addition to healthcare data can help in development of better products and also enhance the customer engagement process for insurers. Data analytics can also enable health insurers to develop specialized products that could benefit customers through coverage of OPD and hospitalization expenses in relation to short term, non-communicable diseases.

Service offerings can be made quicker, turnaround times can be shortened through data analytical tools as well. Success for health insurers will be consistent, when we as a collective group embrace technology and use it for the masses and not a select few.

We must aim to ensure health insurance coverage for every segment of population and every income class to stay healthy and counter medical exigencies when they arise. After all, a fit population helps in growth of an economy and India is expected to grow multi-fold year-on-year amongst the world’s economies.

By Antony Jacob

The writer is chief executive officer, Apollo Munich Health Insurance