A joint report by FICCI haspointed that insurance companies need to innovate and focus on new techniquesaround data analytics to make healthcare insurance affordable.
The FICCI-Tower Watson reportsaid that owing to astronomical increase in medical costs, more people thanever would be willing to secure themselves.
The report said that data pointsout that the financial impact of ill health is worst for economically weakersection of the society.
The report points that data“clearly suggests that it is imperative for health insurance to innovate byfocusing on new techniques around data analytics like predictive modelling etcto improve the products on offer thereby increasing the market penetration andproduct affordability for the customer”.
The report suggested that Indianinsurers which are armed with powerful IT systems to capture transactionalclaims data is not unmindful of data analytics.
The report said that Indianinsurers must come up with new ways of using this data for advanced predictive modelingtechniques and customer segmentation before writing a policy, the report said.
Data analytics would helpforecast the future better and generate more profits along with improving thebusiness functions.
The FICCI report also said thatthe effective implementation of data analysis methodologies can help trackfraudulent claims and subsequently measures could be taken against the cheats.
Similar systems have beensuccessfully implemented in U.S.and U.K.markets.