Integrating AI and RPA in Health Insurance: Analyzing the Top Trends Revolutionizing the Industry in 2024

Key Takeaways:

• Introduction
• Impact of AI and RPA on the health insurance industry
• Ingenious product launches in the sector

During the COVID-19 period, almost all countries witnessed a huge burden on the public infrastructure facilities due to the exponential rise in the number of patients. Moreover, during the pandemic, the middle-income and below-poverty-line population was unable to access and afford advanced medical services. As per several economists, a major chunk of the middle-class population in developed and developing countries is on the verge of slipping into poverty due to out-of-pocket healthcare expenditures. Hence, in the last few years, many sovereign states have invested heavily in the healthcare sector to tackle any such future events efficiently.

One major recommendation suggested by policymakers across the globe to reduce the burden of medical expenditure is to increase the coverage of health insurance services. For this, government entities have launched public sector programs to provide high-quality healthcare solutions to the marginalized and vulnerable sections of the population.  Similarly, private insurance companies have started offering new types of medical indemnity policies to cater to the evolving demands of their customers. Insurance policies addressing the specific needs of individuals, families, senior citizens, women, and children have been launched by several firms, thus expanding the scope of the health insurance industry.

Deployment of AI and robotic process automation (RPA) strengthening the foothold of the industry

The health insurance industry is anticipated to register a revenue of $6.2 trillion by 2032. The industry accounted for $2.6 trillion in 2023 and is expected to grow at a CAGR of 9.8% during 2024-2032. The increased awareness regarding the importance of a healthy lifestyle and technological advancements in the field of insurance have impacted the sector positively. Along with this, rise in adoption of artificial intelligence and robotic process automation by leading private companies has played a major role in broadening the scope of the industry.

Artificial intelligence has helped insurers analyze large volumes of data efficiently and swiftly, thus enhancing the productivity of the firm in the long run. The machine learning algorithms used in AI-based tools aid businesses in studying the behavioral patterns, medical history, and financial transactions of an individual. The data, thus, collected is then utilized to frame tailored insurance policies for the customer. At the same time, companies have even launched AI-powered chatbots to resolve policyholder’s queries. These solutions perform an advisory role by assisting individuals in understanding different schemes and programs as per their needs, thus improving the relations of the company with its customers. Moreover, artificial intelligence enables enterprises to comply with the evolving regulatory norms, thereby enhancing the trust of the consumer base in the business.

Similarly, robotic process automation has helped health insurance companies to enhance their operational efficiency and productivity. The main purpose of deploying RPA in the insurance sector is to perform repetitive tasks and free up labor for more strategic and productive tasks. Robotic solutions are mainly used for claims processing and underwriting processes wherein these software applications are used to extract data from different sources and structure the disorganized data points for further processing. The accuracy and precision offered by automation tools assist companies in detecting errors and identifying fraudulent claims, thus minimizing the losses incurred by the business.

As far as underwriting tasks are concerned, RPA helps accelerate various tasks such as data extraction, collection, and validations to frame different insurance policies. In the past few years, health insurance enterprises have started using RPA tools in sales and distribution activities, bringing down the operational cost of the business.

Ingenious product launches creating new opportunities in the industry

Over the years, several multinational financial organizations and banks have invested in advanced technologies to launch innovative insurance products and services to increase their footprint in the industry. For instance, in June 2024, Star Health Insurance and Allied Insurance Company, two major players in the healthcare indemnity sector, jointly unveiled an AI-powered face scan tool for remote medical assessment. Designed specifically for insurance companies, the system conducts a holistic body check-up of the user to aid insurers in framing appropriate policies. The company released a statement stating that the product launch is a major milestone in digital health assessment platforms and is expected to help companies reduce the burden of claims processing and underwriting significantly.

Similarly, in November 2024, Canara HSBC Life Insurance (CHLI), an Indian health insurance firm, announced a partnership with Fedo.ai, an AI-based medical solutions provider. As part of this collaboration, both companies have agreed to pool their resources and expertise to develop advanced facial scan technology for non-invasive health assessments. As per the press release issued by both companies, this innovative product is expected to help consumers make informed choices while subscribing to an insurance policy.

In conclusion, rise in awareness regarding the importance of health indemnity policies and surge in investments by government entities and private companies in the medical sector have accelerated the growth rate of the health insurance industry. Moreover, the integration of AI and robotic process automation is expected to bring numerous growth opportunities for the growth of the sector in the near future.

Contact our experts for the growth drivers and investment opportunities in the health insurance industry!

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