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15 Jun 18 14:24

Legal drama enthusiasts will recognize this line from one of my favorite movies, "My Cousin Vinny" almost immediately. The context of the line is a courtroom scene in which "Vinny" the attorney wants the witness "Mrs. Reilly" – and only the witness – to answer a question he has posed during cross-examination.

I love that scene because it brings to mind the ongoing and singular personalization of healthcare at various points across the industry. It doesn't matter whether we are talking about technology, care management, underwriting, clinical aspects etc., because the reality is that as technology continues to advance rapidly and as more and more money gets poured into healthcare, singular personalization is here to stay - even in old world industries like insurance. With this in mind, let me offer up just some of these personalization activities going on in healthcare, life insurance and health insurance right now:

Propensity models such as a non-smoker one, use data-driven predictive analytics to triage and predict (with a high level of accuracy), whether a specific person who is a declared non-smoker is, in-fact, a true non-smoker. This then allows an application to be routed to a faster and more streamlined track for underwriting and approval for initial life insurance coverage or increases in limits as life circumstances warrant.

Accelerated Underwriting enhances the customer experience by facilitating the offering of competitive premiums compared with fully underwritten products offered by other carriers at the same policy size and issue ages. One may also be able to identify applicants who are most likely to be preferred based on non-medical components, thereby further supporting cross-selling efforts.

Behavioral economics explores the science behind our individual ways. It aims to understand the effects of psychological, social, cognitive and emotional factors on various economic decisions and the consequences of those decisions. This can then lead to modified buying behavior, price changes, rates of returns etc.

InsureTech speaks to a number of ways in which technology can enhance the way insurance is bought, sold, evaluated or managed. Common uses today include AI software to harness, examine, calculate and determine both price and sales opportunity.

Life scores essentially produce risk scores based on a variety of application data, laboratory test results, prescription data etc. increasing the efficiency and degree of transparency in decisions.
Wearables and sensors worn on the human body that track biometric data and fitness in the hope of not only improving overall wellness but also encouraging healthier behaviors while improving the overall experience, They typically provide new data and insights.

Modifiable (AKA Improvable) Risks represent conditions like diabetes or other cardiovascular risks that may initially lead to declinations of coverage but can be modified or improved over time thereby resulting in a different coverage decision.

Consumer engagement seeks to better understand how protection and other needs fit into people's lives so that a relevant (to them) solution can be presented in a very personalized way. It is hard to do this without understanding emotions, behaviors, motivations, concerns, obstacles, social determinants etc.

Genetics looks for changes to a person's genes (or characteristics of) in order to identify disease and heath risk. This could lead to increased awareness which in turn could help in managing or improving that risk, thereby potentially increasing longevity. This may also support the development of new markets or products, like critical illness.

While this is by no means an exhaustive list, it does give one a sense of awe at the myriad number of things (including even peer-to-peer insurance) happening across the landscape. Some of these things may be revolutionary, others evolutionary, but all of them speak to rapid change from the ways that things have historically been – and are currently - being done.

So, "Mrs. Reilly – and only Mrs. Reilly" - are you:

65-years old
Retired
A non-smoker
Wearing glasses
A diabetic
On Medicare
Taking a walk every day at 10am
Living in Montgomery County, Alabama
With 3 children and 2 grandchildren
Looking to buy Critical Illness insurance within the next 30 days to supplement your current life insurance plan?


Category: Other


1 Comment

Robert Fraser - 25 Jul 2018, 11:06 p.m.

Is it feasible to connect a personalized health plan based on the health risk assessment for each individual to their premiums? Linking a regular assessment (annual?) and adherence to a plan to the rates? Or rather than linking to a premium reward those that adhere with some other reward?


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