Data-Driven Trends in the Health and Life Insurance in 2021

As we enter the new decade, insurers are looking for a way to gain a strategic advantage in the industry. Implementing technology that relies on Big Data, IoT, and AI can have massive impacts on insurance companies, laying the foundation for revenue increases and future innovation. 

The insurance industry is evolving, and innovative opportunities to be a changemaker are waiting for you. The leaders of tomorrow are already implementing cutting-edge technologies that use big data, artificial intelligence (AI), and automation. While the industry spans a variety of sectors, every company, from health to automotive insurance, can benefit from these new trends. 

In this series of articles, we’ll explore the most prominent technological trends in the Insurance industry that will dominate 2021. In the 1st part, we’ll take a closer look at Health & Life Insurance.  

Trends in the Health and Life Insurance in 2021  

The Covid-19 pandemic has led to an onslaught of severe health challenges. Insurers have had to rapidly adapt in response. 

Healthy Habits Are Worthy of Rewards 

Customers are used to receiving personal ads on social media, or customized notifications from their banks. While the health and life insurance industries are definitely different from a financial institution, customers still expect that these companies will know them inside and out. As a result, insurers must re-evaluate their products to attract new customers and retain established ones. The acceleration toward innovation requires insurers to place the customer first. 

In the health and life insurance sector, wellness initiatives that reward healthy habits are growing in popularity. These initiatives also improve the relationship between insurers and policyholders because they must work together toward a common goal of better health. Insurers can use wearable devices, big data, and IoT (Internet of Things) to monitor, encourage, and support customer health. 

Real-World Examples 

Asking policyholders to share their data may sound invasive, but a blue paper by Morgan Stanley and BCG indicated that customers are prepared to share their data in exchange for incentives. 

The John Hancock Vitality Program gives its clients rewards for sticking to healthy lifestyles. The John Hancock Vitality Plus policy offers customers discounted wearable devices, then rewards them for healthy lifestyle choices, and even gives them the chance to save up to 15% on premiums for hitting activity targets. 

Big Data Simplifies Processes and Enhances Personalized Experiences 

An essential requirement for adopting personalization is having enough data on your customers—and the ability to decipher that information. Predictive data analysis, AI, and machine learning present exciting new opportunities for health and life insurance companies aimed at improving performance and forecasting customer behavior. 

Big data offers valuable information, allowing companies to be more aware of how to best serve their market. Life and health insurers must be willing to respond to this technological shift and appreciate that a one-size-fits-all policy is no longer adequate. Customers are searching for innovative solutions, and, as they adopt new digital technologies, their appetite for sharing personal data is also changing. 

Real-World Examples 

Blue Cross Blue Shield Axis (BCBS Axis) uses big data to empower patients, employers, and healthcare facilities to make better healthcare decisions. BCBS Axis lets people view and compare 90% of all doctors and hospitals in America. It also helps healthcare providers to improve and employers offer the best solutions to their employees. 

Ladder life insurance uses big data to simplify its application process. Using simple questions in an online form, Ladder combines AI and predictive data analysis to eliminate the need for time-consuming doctor visits. 

Haven Life uses big data to offer custom pricing based on a result from its MyLifeScore software. The score is determined by the answers to ten straightforward questions. By leveraging 48 variables, including age, family, and weight, Haven Life calculates risk based on the collective analysis and insights from nearly one million life insurance policies spanning 15 years. 

Telematics Contributes to Personalization 

Telematics combines devices that monitor different behaviors. This technology can do everything from counting steps to monitoring your sleep patterns and checking your activity levels. Integrating telematics into wearable technology provides health and life insurance companies with up-to-date statistics about the customers. 

The original purpose of telematics was to monitor drivers on the road. However, health and life insurers are expanding the application of telematics into other essential areas like healthcare. 

Real-World Examples 

John Hancock aims to offer interactive life insurance by using wearables like Fitbit, Apple Watch, and its app. The company collects fitness data and offers premium rewards, perks, and discounts for healthy habits. 

This concludes the 1st part of our overview of the main technological trends in Insurance in 2021. In the next part, we’ll explore key trends in Auto Insurance such as Big Data and Artificial intelligence as well as some real-world examples of how these technologies are implemented across the industry.  

DataArt experts can offer free expert advice on how insurance companies can set apart and dominate the market. Get in touch if you are ready to become a trendsetter in insurance innovation and want to future-proof your business.