What can digital health do for you as an insurer?

by Peter Ohnemus, President & CEO, dacadoo

Digital services heavily shape today’s insurance landscape. Modern users are eager to explore wearable devices, healthcare apps and AI tools. These platforms let users take charge of their health and make changes to their lifestyle. Users also expect health organisations to integrate these tools into their practice. Today’s clients want their insurance carriers to offer a range of mobile services and digital platforms.

Insurers have also discovered that digital solutions can save them time and money. As a result, health insurance has undergone a widespread digital shift. But digital transformations aren’t easy, and making the shift can be time-consuming and expensive. Nevertheless, this shift needs to happen: as was agreed at this year’s World Economic Forum (WEF) in Davos, the world is moving towards a stakeholder economy.

Insurers can streamline this process by homing in on client preferences. Consider which trends offer the most bang for your buck. And once your organisation has a game plan, look to the experts. Software and health tech companies can provide solutions integrated into your existing framework. These options for digital health can help your organisation move forward in a more efficient way.

As you explore your options, consider the following benefits…

Digital solutions help users make healthy choices

Digital tools help you take charge of your health. Studies have shown that apps and wearables may help:

• Prevent disease

• Improve diagnostics

• Help manage chronic conditions

• Lower lifestyle risks

According to a McKinsey & Company white paper on digital health tools, “the goal of each ecosystem is, ultimately, to improve healthcare outcomes.” New research suggests that many modern tools are actively fulfilling this goal.

When patients track their health data, they feel confident and in charge of their bodies. In one study, 43 per cent of users claimed that digital services have “increased my focus on wellness and prevention.” Many modern users expect insurers and healthcare providers to provide digital wellness solutions.

Insurers can meet this demand by offering robust consumer-centric programmes that include health quantification and other tangible scores.

Digital tools help insurers connect with users

Patients aren’t the only ones who benefit from digital solutions. McKinsey & Company determined that “digital health ecosystems also hold promise in improving administrative efficiency based on lower overhead costs and faster turnaround times.” Many insurance providers have found that these tools create a “digital front door,” offering clients an interactive and welcoming platform, through which insurers can implement, with relevance, a “we care” strategy. Mobile tools provide another opportunity for positive interactions with customers, while boosting client retention and cutting healthcare costs.

Negative healthcare experiences often affect users’ attitudes toward their insurance carrier. In time, this attitude can become a self-fulfilling prophecy. Users may avoid healthcare because they distrust the system. But a lack of preventive care may result in severe health problems, proving costly for both patients and insurers.

Digital solutions help break the cycle. These tools create a daily dialogue with users, encouraging them to stay on top of their health and contact their provider where necessary. Apps and wearables can offer encouraging and supportive messages. When branded or personalised by insurers, the messages promote trust for the carrier. Users see that their insurer is invested in protecting their health and wellbeing. As McKinley & Company put it, “regular communication between a patient, provider, and payer can advance care integration and optimise health monitoring.”

Digital tools help determine risk and reduce costs

Digital tools create a detailed picture of each user’s overall health. Insurers can then use a data-driven approach to personalise premiums through a dynamic pricing or “pay-as-you-live” system. Digital risk assessment also allows for accelerated underwriting with confidence, streamlining the enrolment process.

Users may push back against cost increases that seem arbitrary. But with digital tools, users quickly understand how to decrease their out-of-pocket costs. The relationship between lifestyle choices and healthcare costs becomes clear to each stakeholder.

According to a report by Capgemini, “rising healthcare costs are driving insurers to move to a value-based care model.” Using digital tools to determine pricing provides added value for insurers and clients. Insurers develop a better relationship with clients, providing flexibility and meeting users where they are.

Digital tools can be branded and personalised

Insurers often gravitate toward in-house apps and tools. But the best digital tools on the market are designed to integrate with multiple insurance carriers, as well as the most popular tracking apps, with a much shorter time to market. These tools offer a personalised experience for users across various companies. Your organisation can choose a white label app that adapts to your unique brand. Some options even allow you to create new content, add features, or target specific patient groups.

Choose tools that not only comply with the highest level of data privacy, being GDPR and HIPPA compliant, but also integrate with phones and wearables for a fully mobile, secure experience. Today, millions of people rely on these devices for health and lifestyle coaching. About 39 per cent of surveyed insurance customers worldwide currently use at least one internet-connected device. By optimising your digital tools with mobile platforms, you can reach these users.

And that’s where dacadoo comes in.

dacadoo offers a wide range of solutions for health and life insurers. Our Health Engagement Platform uses motivational techniques from behavioural science experts. Our Health Engagement app (white label also available) includes functions drawn from gamification and social media, as well as offering AI-based coaching to engage users in a personalised manner. Many users describe these tools as a private health coach they can keep in their pocket. dacadoo is a win-win solution, improving user health while saving insurers time and money.

Additionally, our Health Risk Quantification System offers a numerical way to assess users’ health, allowing for accelerated underwriting. As a leading health-scoring technology provider, our technology is based on over 300 million person-years of clinical data.

Learn more about dacadoo or request a demo.

Download our free white paper, Guiding Health Insurers Through the Digital Front Door