Role of BPM in Insurance Market
The Long-Term Care (LTC) insurance industry brings both issues and opportunities to the forefront. On the one hand, the whole market has been gradually increasing and is expected to continue to do so. The traditional LTC insurance industry, on the other hand, is continuing to fall as prices rise and people become less willing to purchase coverage.
Traditional LTC insurance contracts sold in the United States fell from 750,000 in 2000 to just 70,000 in 2017. It’s no surprise that the number of LTC players has been steadily decreasing.
Insurance companies have been trying to price risks effectively or economically, as well as to manage new regulatory norms in a cost-effective manner new regulatory guidelines (leading to repeated rate hikes on existing policies).
Insurers can bridge the holes in operational inefficiencies and successfully solve the difficulties by engaging with Business Process Management (BPM) businesses.
Integrated Technology Ecosystems
BPM firms’ considerable experience in application processing, policy administration, claims and care management allows them to provide the best results for LTC insurers. BPM firms can create value in the area of risk adjustment by employing an integrated technology ecosystem powered by automation, analytics, and artificial intelligence to meet crucial outcomes such as revenue impact, cost savings, and customer experience. This value includes the following:
- Access to actionable data: Using analytics to link socioeconomic claims and medical data to develop outreach, intervention, and financial support action plans.
- Platform-based support: A combination of automation software, care management and communications platforms, analytical tools, predictive modelling, mobility, and telehealth technologies are used to provide platform-based support.
New Hybrid Products and Solutions
The rise of newer choices in combining universal life insurance with long-term care protection has been an upside of the fall in traditional LTC insurance business. These hybrid LTC insurance offer the security of rate guarantees as well as the flexibility of having premium funds refunded in the event of death or a change of plans.
Longer payment durations are also available with combination packages, including five-year, ten-year, and lifetime pay. Companies that specialise in business process management (BPM) can help with building the correct solutions and procedures, as well as new product launches and updates for hybrid solutions.
End-to-End LTC Management
To aggregate LTC operations onto a unified platform, BPM players have the advantage of domain expertise and process competence. Product performance, risk assessment and management, distribution, operational inefficiencies, and capital requirements are all aided by this.
Domain, process, and technological synergies can aid insurers in achieving rapid scaling and significant time and cost savings. BPM partners can visualise and give actionable insights with the right business indicators by leveraging the power of intelligent analytics and reporting. Furthermore, end-to-end auditability and governance can be designed using efficient valuation and modelling methods.
BPM collaborations, without a question, can be a major help to LTC insurers looking to take advantage of a growing array of options. It includes practical methods for lowering risks across the board, including estimation, processes, and talent skills and availability. More importantly, it can provide the requisite technical skills to help LTC organisations achieve digital transformation and unlock long-term value.