How tech will revolutionize health care and life insurance

In today’s rapidly evolving world, where digital transformation is reshaping every sector, both the health care and life insurance industries are at a critical juncture. As we navigate a landscape marked by fragmented services, cumbersome legacy systems and escalating customer expectations, the need for innovative, technologically advanced solutions has never been more urgent.

In the health care sector, groundbreaking platforms such as the Medix app are making significant inroads by offering holistic, data-driven health care management. Simultaneously, in the life insurance industry, software solutions such as EXL LDS and Swiss Re Underwriting Ease are setting new standards by streamlining traditional, inefficient processes. Furthermore, professional associations such as the Association of Home Office Underwriters play an instrumental role by fostering a community of well-informed, skilled underwriters equipped to handle the complexities of today’s insurance challenges.

Medix Global stands as a beacon in the health care industry, established with a vision to harness the full spectrum of medical expertise, advanced treatments and cutting-edge technology. Since its inception in 2006, Medix has been instrumental in changing health trajectories for its vast customer base through personalized, data-driven medical responses that transcend borders. The effectiveness of such innovative health care solutions is underscored by a global health expenditure that is expected to reach $10 trillion by 2024, according to the World Health Organization.

Central to Medix’s innovative approach is the Medix app, a holistic medical command center that integrates various health services into a seamless interface. This app not only allows users to manage their health with unprecedented precision but also leverages proprietary artificial intelligence and data analytics developed over two decades. The app provides comprehensive medical coordination, medical record management, real-time consultations and personalized health insights, all aimed at enhancing the user experience and improving medical outcomes.

For example, in digital health management, a study by McKinsey estimates that the use of health apps and wearable devices will reduce hospital costs by 16% in the next five years due to better data-driven decision-making and patient management.

Technology in life insurance: Addressing inefficiencies

Similarly, the life insurance industry, traditionally bogged down by manual and outdated processes, is undergoing a significant transformation. Companies face pressures from increased competition and the need for rapid adaptation to market conditions. This has led to the adoption of technologies such as EXL LDS and Swiss Re Underwriting Ease, which streamline the entire life cycle of insurance processing from application intake to underwriting. 

EXL’s LifePRO Digital Suite, which includes the LDS software, automates new business and underwriting processes, eliminating manual data entry and physical document handling. It enhances accuracy, service quality and market responsiveness. 

For example, after integrating LDS, a regional insurance company in the eastern U.S. reported a 36% increase in application processing efficiency and a 20% reduction in operational costs over three years. Application submission rates for this company increased from 33% in 2018 to 45% by the end of 2021, alongside achieving annual savings of $250,000 in licensing and software costs previously required.

Enhancing underwriter efficiency

Swiss Re’s Underwriting Ease focuses on improving the efficiency of underwriters by consolidating all relevant medical underwriting information into a single interface. This aids in streamlining the application review process, significantly reducing the time spent on each case and enabling quicker decision-making. The system is noted for cutting down underwriting review times by up to 50%, significantly reducing costs associated with ordering medical requirements, and increasing placement rates through faster processing.

A key component of this efficiency is the integration and normalization of electronic health records. As underwriters gain increased access to EHRs from vendors or health information exchanges, the challenge of managing this raw clinical data efficiently becomes evident. While EHRs hold the potential to create comprehensive health profiles, the data often comes in nonstandard formats that can hinder automation and require significant manual intervention.

To address this, Swiss Re is taking steps to normalize EHR data effectively, adhering to health care and industry standards to ensure accuracy and reduce the risks of underinformed decisions. This normalization is critical not only for improving the user experience but also for enhancing automation efficiency. By reducing the time underwriters spend navigating complex cases and various data interfaces, Swiss Re Underwriting Ease helps streamline the entire underwriting process.

The system uses advanced data organization and language technologies to evolve underwriting practices, making them faster and more consistent, cost-effective and accurate. Swiss Re continues to lead in underwriting innovation, investing in research and analytics to further enhance speed and cost efficiencies for carriers and clients while developing improved data-driven underwriting capabilities.

This integration of EHRs into Swiss Re’s Underwriting Ease is a testament to the company’s commitment to revolutionizing underwriting processes, ultimately increasing placement rates and reducing operational costs through smarter, more efficient data management.

Uniting underwriters across borders

AHOU serves as a pivotal organization in the life insurance and financial services industry. Founded in 2002 through the amalgamation of the Home Office Life Underwriters Association and the Institute of Home Office Underwriters, AHOU has grown into an international association boasting over 2,750 members. This union created a powerful voice for professionals in life, health and living benefits underwriting.

AHOU is committed to enhancing the underwriting profession, the education it relies on and the careers of those within the field. The organization focuses on fostering a deeper understanding of mortality, morbidity and risk management among its members. Through these efforts, AHOU aims to propel underwriters’ careers forward, ensuring they are equipped with the knowledge and skills necessary to excel in an evolving industry.

Recognizing the importance of continuous professional development, AHOU offers a variety of networking and educational opportunities throughout the year. These are designed to cater to underwriters at every career stage — from newcomers to seasoned leaders. 

AHOU’s comprehensive approach to education includes the association’s annual conference, held this year May 5-8 in Boston. The conference theme was “Embrace the Underwriting Revolution.” The event brought together industry professionals for learning, networking and sharing best practices.

These resources are not only accessible but also available on demand, allowing members to engage with content that is most relevant to their needs and schedules. This flexibility ensures that AHOU members can stay at the forefront of the industry, regardless of where they are in their career journey.

Theirs is a future-oriented approach. By providing its members with tools to understand and assess risks better, AHOU not only supports their immediate educational needs but also prepares them for future challenges. This forward-thinking approach is crucial in an industry that continuously adapts to new technologies and changing demographic trends.

The synergy between technological advancements and professional development initiatives is setting a new paradigm in health care and life insurance. Organizations such as Medix Global and AHOU, along with technologies such as EXL LDS and Swiss Re Underwriting Ease, are not only addressing the immediate challenges faced by these industries but are also paving the way for future innovations. These developments are critical in ensuring that health care and life insurance professionals are not only able to meet the current demands of their fields but are also well prepared for the challenges of tomorrow. 

As these industries continue to evolve, the integration of technology and enhanced professional training will undoubtedly play a pivotal role in shaping a more efficient, responsive and customer-centered future. This transformative journey is a testament to the power of innovation and collaboration in driving significant industry change, ultimately improving the lives of millions around the globe.

Ken Leibow is CEO of InsurTech Express. He has more than 30 years of insurance industry experience, with an extensive background in insurance technology for distribution and back office systems. Before founding InsurTech Express, Leibow worked for Genworth Financial, Mutual of Omaha, and as vice president of operations at Diversified Underwriters Services. Ken is a leader for industry technology standards, working with ACORD, LBTC, LIDMA, NAILBA, LIMRA, LOMA and IRI. He can be reached at [email protected].