What Is Health Insurance Altering The Way That Businesses Work?
The insurance industry has been affected by the pandemic worldwide like other industries, but with technological advancement, the health insurance category of insurance has been able to emerge from the ashes. In the case of Sri Lanka, insurance was one of the first industries to adoptthe the “new normal.” The industry took this step by changing their offerings to include death and hospitalization insurance for COVID-19 to ensure that they remain relevant in the ever-changing times.
Role of Digitalization:
Digitalization is associated with restrictions on travel and contact. Some health insurance providers swiftly adopted technology to guarantee continuous service delivery to their clients, particularly in relation to medical claims, which increased after the pandemic outbreak. This was possible due to services like Digi Med, which help automate the claims process to ensure an efficient and reliable result. The insurance industry is viewed with an unfavorable image within Sri Lanka primarily because the process of submitting claims for health insurance or motor insurance has been commonly viewed as inefficient.
With DigiMed’s DigiMed services that are offered, all documents can be transferred and processed digitally. Where they are also stored for future review. DigiMed may be installed and downloaded for free through both the iTunes App Store and Google Play Store and has the pay-as-you-go model that allows users to try the software before purchasing the same. DigiMed is secured to ensure the confidentiality of customers and provides all the parties access to monitor the status and progress on the claims at any moment. The ability to access the service at any time of the day is an additional benefit.
Experts’ Opinions Regarding Digitalization
Industry veteran and Managing Director at Softlogic Insurance PLC Ifthikar Ahmed was mentioned in the KPMG’s Sri Lanka Insurance Report published in 2020, stating: “Digitalization is not the future; it is here and now.” He elaborates on that technology and talents are available today, unlike the past 20 years, and thus insurers have to make wise investments in what will bring the highest return and the best customer experience.
As Ahmed’s words echo his thoughts regarding digitalization, the former director at Feetfirst Insurance Limited, Sanjeev Jha, advised insurers to find new ways to insure risk that could arise after the COVID-19 period. Jha believes cyber-related risk medical insurance for tourists as well as work-from-home insurance are some of the areas insurers could focus on.
The Future For The Insurance Sector Locally
For a long time, Sri Lankans haven’t considered insurance to be an essential requirement but rather as a luxury. One method to change the perception of Sri Lankans is to educate. An article in the Daily FT article published in October 2020 noted that insurance penetration, as measured by the cost of insurance as a percent of GDP, was close to 1.31 percent in the year 2019. While the percentage of insurance coverage increased in 2019, compared with 1.26 percent recorded in 2018, it’s still low in comparison to other nations in the Asian region.
According to the most recent available data (2019), the Sri Lankan insurance industry comprises 27 insurance companies with 67 brokering firms as well as sixteen loss adjusters. Of the 27 insurance companies, 13 operate as life insurers and 12 engage in general insurance. Two are composite insurers. It is possible to believe that with insurers adopting digitalization, the rate of penetration will increase in the coming years due to increased reliability, convenience, and trustworthiness.
The interest in insurance is believed to have soared following the pandemic outbreak, especially among the millennial and Gen Z demographics, who are widely understood as being technologically savvy. Therefore, it is advisable to invest in technological advancements because the “new normal,” which is paperless and contactless, is sure to last. Because the market is extremely saturated and crowded, finding ways to remain current and stay ahead of the curve is essential.