Data and Behavioural Science - The key to reducing claims and costs in health insurance?

Health insurers are being squeezed from two directions. The costs of providing health services are rising thanks to higher inflation and the emergence of new but costly treatments. At the same time, consumers expect an ever-greater level of personal service.

Combining data and artificial intelligence with the insights of behavioural science could be the key to reducing claims and costs, while also meeting those rising customer expectations. But what are the key challenges and practical steps to harnessing the power of data and behavioural science?

The challenge

A successful data and behavioural solution will involve complex and secure IT solutions. Such systems will need to be fully scalable to gather and analyse data meaningfully and produce actionable insights.

Behavioural science techniques will be needed to engage consumers and foster lasting changes in their behaviour both to improve their health and optimise their interactions with their insurer. It is essential that these engagements use a range of techniques, but must not overwhelm the consumer, as this will quickly cause them to disengage.

Three principles for healthier insurance

1. Small steps. Do not aim for an all-embracing solution straightaway. Plan for small changes in customer behaviour such as keeping appointments, taking medication, or activating their online account.

2. Timing. Identify the optimal moments to nudge consumers and do so in a personalised way. Knowing when a consumer has visited their doctor or had a scan will allow for follow-up actions to be encouraged at just the right moment.

3. Set a realistic path. Those initial small steps will quickly deliver value but will also form the foundation on which to build a wider solution. As more data points are collected everything from engagement with consumers to risk analysis will become easier and more effective.

Combining data and AI with behavioural science techniques will benefit stakeholders, having the potential to personalise service for customers, improve their health outcomes, reduce the number of claims, and cut the costs of fulfilling claims when they arise.

To read more about the topic and how insurers can effectively leverage the power of data and behavioural science, you can find our whitepaper, written in partnership with the iptiQ Office of the Customer at Swiss Re, at https://monstar-lab.com/uk/blog/data-and-behavioural-science-the-key-to-reducing-claims-and-costs-in-health-insurance/