mHealth technology is a cost-efficient solution for insurance companies. Technology start-ups are disrupting many existing business models, including the insurance industry. Most of the current trends in the insurance industry have technology as a driver.
By 2020, the global Internet of Things market is expected to reach 1.7 trillion USD, and the number of connected devices is expected to reach 29.5 billion. Due to the low cost of sensors, improved communication methods, and increased data processing power, mHealth solutions are now becoming a cost-efficient solution for insurance companies, therefore, insurers are increasingly leveraging the Internet of Things for various purposes, including identification of customers’ needs and risks.
Mobile health (mHealth) technology and Big Data are also expected to have a significant impact on the insurance industry on both insurers and customers. The most common uses of mHealth technology are: to prevent illnesses, to monitor patients remotely, to support treatment and to serve as self-help tools. Insurers are focusing on mHealth apps to monitor and improve the health of their customers, and to reduce their healthcare spending.
Some of the key determinants of a person’s health include lifestyle, environment, and hereditary traits. Therefore, the data obtained from mHealth apps can be used as a cost-efficient solution for insurance companies that helps them to understand a customer’s risk profile. For example, with all the information collected by a person’s smartphone, insurance companies can predict how likely that person is to be affected by an illness and implement a preventive action.
MHealth technology can help reduce administrative costs of health insurers since all the customers’ data is readily available, which makes policy renewals easier. Besides, insurance companies can also use this data to cross-sell insurance policies to their existing clients.
Since the cost of healthcare is on the rise, insurance companies need to adopt new methods to reduce this, and mHealth solutions allow customers to maintain a healthier lifestyle with lower spending.
Until now, patient adherence to medication has been a big challenge in the healthcare industry. For conditions such as depression, the adherence rate is as low as 50%. This non-adherence increases the healthcare spending of customers.
However, mHealth apps, such such as the Monsenso mHealth solution for mental illness, can help reduce the healthcare spend. These smartphone apps can remind customers to take their daily medication, reinforce the need to follow a medication schedule, educate patients about their illness, and inform patients of the consequences of not taking their medication.
If you want to know more about how can the Monsenso mHealth solution for mental health can help your insurance company save costs, click here.
Top 10 Trends in Insurance in 2016. Capgemini Insurance. 2016