One of the many struggles of health insurers is the changing global customer demands that are characterized by a whirlwind of patterns that are very unpredictable. Quickly responding to it is a real challenge.
The crisis brought by the pandemic caused significant shifts in statistics that made it even harder for health insurers to keep pace with the rapid changes in global customer demands. It could mean opening doors for immediate disruption or an opportunity to achieve balanced customer satisfaction and increased revenue.
The global health insurance industry has actually grown significantly over the past two decades. In fact, this study predicted that its market will be valued at $4,475 billion by 2026. With the US as the largest contributor to the worldwide market, some emerging markets grew at more than 20% including Singapore, Saudi Arabia, and China, between 2000 and 2017.
The past years have shown significant changes, but the future will see far more changes at an even more accelerating pace. Major shifts in these critical areas shape the global health insurance industry and are seen to create both challenges and opportunities for insurers.
1. Changing Demographics
The ageing population and growing middle class mean more and costlier healthcare needs. In emerging markets, it means the number of people who can access health insurance increases.
2. Digital, Data, and Analytics
Digital tools are now coming into the picture with the rise of technology. Analytics of these advanced tools are unlocking new models that allow data to flow from clinicians to patients, and insurers, efficiently.
Patients can now play a direct role in managing their own care through wearable devices such as blood monitors. These devices help patients to be more conscious of their health, monitor their own condition better, and seamlessly engage with their doctors.
4. The Shift to Value-Based Care
Fee-for-service care has proven to be costly and often leads to overtreatment and unnecessary services. Shifting to value-based care means lower costs and better outcomes because of its quality-based approach.
5. Disruption from New Market Entrants
Startups are benefitting from reduced barriers to entry and taking market share from established insurers through their deep expertise in technology that develops more customer-inclined features.