As we progress through the 21st century, health insurers are facing a new set of challenges. And cost optimization lies right at the heart of them.
With the development of chronic diseases, healthcare expenses follow a tremendous inflationist trend. This leads to a deep transformation of the needs in health insurance, with three main levers to improve margins:
To reduce operational costs, the keyword is automation. But in order for automation to deliver value, three foundations must be in place:
It sounds obvious, but its full potential only becomes clear upon closer inspection. To reduce operational costs, the first step is to conduct a holistic audit of the operating model, to identify all the operational improvements that can be implemented. This analysis includes several steps:
In order to enable cost reductions and automation, the supporting technology is key. It might not transform the insurer’s strategy, but it will determine its effectiveness. As a consequence, a big part of any cost reduction project should be invested searching for the technology that best suits the strategic objectives. The four key questions for insurers are:
Your IT platform will be at the heart of your processes industrialisation initiatives. Its ability to enable high levels of automation and of standardization of business logic across channels and lines of business could easily be the difference between success and failure.
Digital is a key asset in reducing operational costs, offering the opportunity to manage end-to-end processes and enhance core operations such as policy issuance, administration and claims.
By digitising their processes, insurers can reduce claims regulation costs by 20 to 30 percent, processing costs by 50 to 65 percent and processing time by 50 to 90 percent – improving customer service, satisfaction and loyalty at the same time. So, long after the processes have been implemented, they will continue to yield stakeholder value across your business.
The benefits are clear and proven. Why delay seizing upon them?
To find out more about this topic, the Cegedim Insurance Solutions team is at your disposal to answer all your questions.