« How Connectivity Engages Patients & Healthcare Professionals | Main | Why Collaboration And Innovation Go Hand-In-Hand »

November 20, 2014

Why Are Insurance Companies Embracing IT?

Posted by Mohan Babu (View Profile | View All Posts) at 9:01 AM

insurance
A major way that insurers are becoming more nimble and cost-effective is by embracing Big Data, mobility, and the Cloud

Fact: The insurance industry is slow to innovate. The reason? There's really been no need to do so until very recently. For hundreds of years its business model has been very simple and most of the large firms relied on an army of independent agents to sell their products to the public.

Just as the Internet revolutionized retailing, it is making waves across the ever-traditional world of insurance. That's because companies both large and small, old and new, can reach the public directly through the Internet. If the right Information Technology powers direct consumer access, the result is a potent combination of efficiency and cost savings for otherwise staid companies.

Add to this scenario the fact that we're seeing the development and maturity of the Accountable Care Organization (ACO). In the technology sector, it's a given that when companies collaborate, they're more likely to learn from each other and innovate. This concept is not as obvious in the world of insurance. So when ACOs help facilitate collaboration between providers and payers, we're experiencing a more streamlined process of care that strives to preserve consumer choice.

Consumer choice is important in retail and insurance providers should take some pointers from that industry. That's because retailers are accustomed to operating on razor-thin margins and are discovering that cost-savings and a renewed focus on the consumer can improve those margins. It's no different with the insurance sector. With growing options for the consumer across all channels, it's a no-brainer for established insurance companies to pay more attention to their consumer base. For instance, certain insurance companies have sponsored their own 'storefront' clinics that provide fast, efficient healthcare on their terms. Patients with chronic conditions are finding these clinics to be extremely helpful given that they are essentially economical, one-stop treatment shops.

Did you know that the treatment of chronic conditions and diseases (such as heart disease, stroke, diabetes, arthritis, and cancer) account for more than 70 percent of healthcare expenses in the West? To be sure, the medical world is working feverishly towards eradicating as many of these conditions as possible. In the meantime, however, insurance companies can work with providers and consumers alike to devise new, affordable coverage models that are relevant to the 21st century.

A major way that insurers are becoming more nimble and cost-effective is by embracing Big Data, mobility, and the cloud. Again, this is an ultra-traditional industry that has always placed IT in a rarified silo. But times are changing. The savviest and most competitive insurance companies are learning how to integrate IT across their global operations in order to facilitate cost efficiencies and robust growth well into the future.

Comments

Need to implement Enterprise Mobility in Insurance for flexible and efficient business model.
In order to accelerate insurance processes like Claim Settlement or On-line purchase. Which leads to customer satisfaction and when customer is happy definitely there will be a growth in business.

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

Please key in the two words you see in the box to validate your identity as an authentic user and reduce spam.

Search InfyTalk

+1 and Like InfyTalk

Subscribe to InfyTalk feed

InfyTalk VBlogs: Watch Now

Infosys on Twitter