How Can Blockchain Revolutionise The Health Insurance Sector?

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D:Madhuri DataICICI LombardWritten2-FebOff Page_How can blockchain revolutionise the health insurance sectorshutterstock_554011084.jpg

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 is the 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 the best health insurance policies. But still, there are specific areas that can be improved for a better customer experience. Blockchain technology can very well play a role in this. Here are some ways in which blockchain can revolutionize 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 digitization 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 organizations can use blockchain technology to verify patient’s information. This will include verifying patients’ genetic data, medical records, digital identity, and prescriptions history, allowing them to provide improved services. This automated verification will reduce administrative costs by verifying policyholders’ identity, auditable registration of claims, contract validity, and data from third parties.

3. It will help in fraud detection

The blockchain database could 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 the case of term plans will become easy. Blockchain will immediately help the health insurers detect the fraud death claim as there will be no record of the 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, leading to better and faster treatment.

Patients’ data will be stored in a nationwide distributed ledger and made available through the blockchain private key. This will enable patients to easily share their information with organizations 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 the right medical data of the policyholder.

5. Blockchain will help in faster claim settlement

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

The blockchain process will help insurers immediately verify the claim. Once the claim is verified, it will be recorded on the 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 health insurance sector’s focus has shifted from “illness to wellness.” Hence, some of India’s best health insurance companies have identified the need for 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 government’s support and all the best health insurance players, blockchain in health insurance will no longer be a conversation.