Harnessing insurtech delivers path to proactive risk management

HealthCloud enables the ingestion of data from myriad input channels.

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Proactive risk management has become the linchpin in revolutionising how insurers approach customer experience, underwriting, pricing and the concept of 'prevention being better than cure' in today’s increasingly digitised world. The impact can be seen on the growth of the global insurtech market, which was valued at $5.45 billion in 2022 and is projected to grow by more than 52% annually through 2030. This provides insurers with the opportunity to leverage advanced technologies as the means to enhance customer outcomes while mitigating risk.

Given the nature of the industry, insurers have always had to manage a significant amount of data. But thanks to the rapid evolution of technology, more refined tools such as artificial intelligence (AI), machine learning and sophisticated algorithms are now available. These can be used to manage and interpret data more efficiently. An amalgamation of data and automation provides insurers with a cost-effective, user-friendly solution to proactively manage risk.

Insurers can now harness health and wellness data, available in abundance from wearable devices and other platforms. However, the challenge lies in seamlessly integrating this new influx of data within existing processes. This is where solutions like the Alula Technologies HealthCloud platform come into play. HealthCloud enables the ingestion of data from myriad input channels such as wearables, remote diagnostics, pathology labs, rPPG (face scanning technology using PC and smartphone cameras) and even insurers’ own databases to provide a comprehensive health profile of an individual policyholder.

It is important to remember that data, in itself, is a dormant asset until it is integrated seamlessly into business processes. It is the application of this data through AI and proprietary algorithms that unlocks its potential. Alula Technologies’ HealthCloud generates health scores from more than 60 data points to ensure insurers can better understand their customers and anticipate and identify potential risks across their portfolios. By deploying proactive strategies, such as personalised health nudges, home testing kits and regular check-ins, insurers can manage risk, enabling them to promote healthier lifestyles and deliver more accurate pricing models that better reflect individual customer profiles.

However, implementing this proactive approach is not without its challenges. The scars from previously expensive and unsuccessful tech projects, budgetary constraints and internal resistance may hinder the harnessing of this data by insurers. At Alula Technologies, we believe in partnering with our clients, addressing these issues head-on and adopting a scalable, test-and-learn approach.

Engagement and education are integral for risk prevention and mitigation. Here, the role of technology cannot be overstated. Using personalised messaging, relevant content and timely reminders can help foster a more proactive approach in the relationship between insurers and policyholders. The next shift in engagement lies in rewarding positive changes, with dynamic pricing being the ultimate goal.

As we look to the future, we believe the true challenge lies in effectively using these tools to benefit both customers and insurers. The notion of active book management, facilitated by data and automation, paves the way for providing unparalleled health and financial value to customers. Insurers, in return, benefit from better risk management and customer relationships.

To prepare for this shift, insurers must start their transformation now. Identifying customer pain points and finding solutions, using the available tools, and adopting a continual testing-and-learning approach, should be the initial steps. Since technological advancement is continuous, it is crucial for insurers to partner with a company that allows for growth at their own pace.

The future of proactive risk management in the insurance sector lies in harnessing insurtech effectively. At Alula Technologies, we are committed to making this future a reality, transforming the insurance industry one data point at a time.