Many U.S. Citizens face confusion and stress when it comes to health insurance, while insurers face challenges around risk assessments. Despite efforts by the government to improve the system, 15% of young adults are still uninsured, and many insured people find insurance to be too expensive. The healthcare system is also not sufficient for many, with 11% of uninsured individuals having an income below the poverty level but being ineligible for Medicaid. AI and machine learning are being utilized by health insurance companies to identify at-risk individuals and lower rising healthcare costs. AI can help streamline processes, track data, and improve the system, potentially leading to better health outcomes.
As more and more healthcare and medical companies are adopting AI and machine learning into their systems, industry leaders are realizing the potential benefits of these technologies. By using AI to gather and process information, healthcare companies can improve the accuracy of treatment protocols and health outcomes. This technology can also be applied to lower the cost and complexity of recordkeeping, including electronic health records, and maintain data integrity. In addition, AI offers the potential for quick and easy triage and risk assessment, leading to faster underwriting and more effectively adjusted premiums. By using AI and machine learning, healthcare companies can improve their services and provide better care for their patients.
Technological advances allow healthcare plans to be consolidated into a single, fluid system. These systems can constantly learn and improve by understanding the data and behaviour of its customers. This means that consumers can have a personalized experience based on their unique preferences and needs, as well as receive concierge-level guidance and custom recommendations. Ultimately, the goal is to provide the best possible user experience by leveraging relevant information and filtering out the irrelevant. In turn, providing improved post-policy engagement methods.
It’s crucial to understand that the majority of the cost of health insurance enrolment goes towards risk prediction and management. By utilizing AI models to create a system that can create more precise risk models and predict which individuals require specific types of care, health insurance providers can spend more money on their beneficiaries and less on these processes. Platforms that can process, analyse, and learn from data, refine judgments, and generate intelligent insight can also significantly reduce the need for costly human data analysts. The key takeaway for insurers? This is an opportunity to drastically reduce their overheads.
Using AI in the insurance purchasing process can be challenging because it is difficult to obtain the necessary data to generate insights. To sell insurance, detailed information about a person’s life, health, and family is needed to make the best recommendation. While a person can discuss these details on the phone, a machine cannot access this information directly. This creates friction between asking questions and slowing down the process, or using other sources to gather the data and make a recommendation on the consumer’s behalf.
Currently, many companies are still trying to figure out how to organize data in a way that can be used by AI. Trusting that a machine made the right choice for them is also a concern for consumers. However, AI-driven health insurance has the potential to deliver better outcomes and address some of the complexities of the U.S. healthcare system. Through usage of AI and machine learning, providing insurance policies can be easier and more cost effective for Insurers. By better understanding each policyholder’s unique needs, AI and machine learning can provide a solution that simplifies the industry and greatly mitigating risk.