How Can Blockchain Revolutionise The Health Insurance Sector?

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Ever since bitcoin has taken the world by storm, its underlying blockchain technology has been gathering a lot of attention from everywhere. One such area being health insurance sector. This sector has seen immense growth over the last few years, thanks to the rising consumer awareness for their health needs and availability of best health insurance policies. But still, there are specific areas which can be improved for better customer experience. Blockchain technology can very well play a role in this. Here are some ways in which blockchain can revolutionise the health insurance sector:

  1. Blockchain can improve information silos

Information inaccessibility has impacted consumer experience in the insurance sector. A policyholder often finds the claim settlement process complicated and tedious. There is a requirement for better data sharing between healthcare and health insurance providers which can drastically improve service delivery and reduce the time taken to settle claims. The above problem can be resolved through blockchain technology, wherein, digitisation of information can provide instant access to all parties involved when needed.

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2. It will be used for patient verification

Health insurance companies and healthcare organisations can use blockchain technology to verify patient’s information. This will include verifying patient’s genetic data, medical records, digital identity, and prescriptions history, which will allow them to provide improved services. This automated verification will reduce administrative cost through verification of policyholder’s identity, auditable registration of claims, contract validity, and data from third parties.

3. It will help in fraud detection

The blockchain database could help to validate the authenticity of insurance claims, customers and the transactions involved in the process. By providing historical data, it will help insurers to detect fraudulent activities. Apart from this, health insurance companies could also get help in identifying duplicate transactions. For example: detecting false claims in case of term plans will become easy. Blockchain will immediately help the health insurers in detecting the fraud death claim as there will be no record of policyholder’s demise in the hospital data. In turn, even the blockchain will have no such registered data and thus can effectively identify fraud.

4. Blockchain will improve data quality

The healthcare data is usually stored on various computers. This makes the data vulnerable to manipulation and also makes healthcare data systems easy targets for hackers. However, with blockchain, the healthcare data will be segregated amongst different providers, using different database systems. Thus, important healthcare data can be more easily accessible amongst healthcare providers, which can lead to better and faster treatment.

Patients data will be stored in a nationwide distributed ledger and could be made available through the blockchain private key. This will enable patients to easily share their information with organisations and eventually allow smooth access to real-time patient health data. Thus, discarding the burden and expenses of data reconciliation. This will, in turn, benefit the health insurers as they will then have access to right medical data of the policyholder.

5. Blockchain will help in faster claim settlement

With the blockchain technology, the claim settlement process will be faster, thus saving the time of the policyholder or their nominee. Here is how:

The blockchain process will help insurers immediately verify the claim. Once the claim is verified, it will be recorded on blockchain which will, in turn, trigger the right contract execution. It will significantly reduce the time of settlement and streamline the operations. Thus, the waiting time of the nominees for receiving payments will drop drastically.

Conclusion:

In recent times, the focus of the health insurance sector has shifted from “illness to wellness”, and hence some of the best health insurance companies in India have identified the need of blockchain technology to make the process more robust.

As more and more people compare health insurance plans to choose the best-suited policy for them, blockchain integration with the health insurance companies will become a differentiating point. Although, implementing this ground-breaking technology will be a daunting task, but with the support from government and all best health insurance players, blockchain in health insurance will no longer just be a conversation.