Health Insurance Company Trends
In reference to our findings, trends within the healthcare industry include using data and digital-driven healthcare services, consolidation and collaboration between health insurance companies, shift to a value-based model, and the use of blockchain technology. These trends are mainly driven by competition, new market entrants, customer expectation, and data protection and integrity.
TREND 1: USE OF DATA AND DIGITAL DRIVEN HEALTHCARE SERVICES
- Health insurance companies are using data and digital-driven healthcare services to personalize the experience of customers.
- Health insurers are leveraging the use of digital tools, voice assistants, online digital portals, predictive and behavioral analytics, and telemedicine to enable them effectively reduce healthcare costs, cater to customer expectations, and migrate to an efficient, digitally-integrated ecosystem.
- The key drivers of this trend include aging health insurance policies which failed to meet the personalized needs of policyholders. This resulted in a less than 1.5% growth in 2018. To combat this insurance companies are moving towards becoming digitally driven.
- The presence of new health insurance companies and the potential erosion of market share as a result of competition has motivated health insurance companies to become digital so as to remain competitive and retain customers.
TREND 2: CONSOLIDATION AND COLLABORATION BETWEEN HEALTH INSURANCE COMPANIES
- Consolidation and collaboration between health insurance companies to enable market position strengthening.
- Companies within the health insurance industry are consolidating and this consolidation is expected to continue. Examples of this trend are CVS’s deal to buy Aetna for $69 billion and Cigna’s deal to buy Express Scripts for $67 billion.
- Other examples are the failed Aetna-Humana and Anthem-Cigna mergers.
- Drivers of this trend include changing customer expectations and the need to remain competitive in the face of new market entrants. Rising healthcare cost has also led to collaboration between companies to optimize operations and reduce cost.
- Health insurers want to save cost by doing more through increased economies of scale and drive innovation through vertical integration. Achieving this is expected to facilitate the efficient delivery of healthcare, ensure companies remain relevant in the industry, and help consumers derive more healthcare services from a single provider.
TREND 3: SHIFT TO A VALUE-BASED MODEL
- With this trend, health insurance companies are shifting to a value-based model of care so as to reduce healthcare costs and provide better customer experience.
- The healthcare system is moving towards a more value-based approach where consumers pay for the quality, rather than the quantity of care. This shift has improved the efficiency of healthcare delivery.
- Health insurance companies are shifting towards a value-based model of care so that they can reduce healthcare costs for policyholders and provide better consumer experience.
TREND 4: USE OF BLOCKCHAIN TECHNOLOGY
- Players in the health insurance industry are using ArtificiaI Intelligence and blockchain technology to improve operational efficiency.
- Blockchain technology is expected to become an increasingly prominent feature of the insurance industry in the coming years. Many of the major players in the health insurance industry are already staking their futures on this new technology. For example, in January, Aetna, Anthem, and Health Care Service Corporation announced a collaboration with IBM for its blockchain platform.
- Health insurance companies are resorting to the use of blockchain technology to solve the issue of inaccuracy of directory data,"which provides insurers with information on medical providers, info that is obviously needed in order to accurately process claims."
- These companies also want to be able to share information with organizations without compromising data security and integrity.