How Insurance Companies work

How Insurance Companies Can Increase Profits by Shortening the Underwriting Process

How Insurance Companies work

The process by which insurance companies determine whether to grant coverage to a person is based on their medical history and current health status, but it can also include other risk factors such as age, gender, marital status, and occupation. This process has been criticised as being time-consuming and prone to human error, but there are ways insurance companies can reduce the time it takes to underwrite health insurance for an individual while capturing vitals during the process and reducing their risk of paying out large claims in the future—all while increasing their margins.

This article discusses those ways.

Capture Vital Information from Customers for Health Insurance

Capturing health vitals from customers during a health insurance underwriting process can help insurance companies increase profits by reducing risk and saving time. For example, capturing weight and height measurements can help with medical underwriting, as obesity is one of several risk factors considered when determining premiums. Conducting blood pressure or heart rate measurements during an interview can help determine whether additional screenings are necessary to determine premium rates. Ultimately, taking these steps could cut down on underwriting time – and lower premiums for customers.

Use Presumptive Underwriting Tools.

Health insurance companies can increase profits by using tools that allow them to make quicker underwriting decisions, and these tools are available in many different forms. One innovative way is to use a remote tool to extrapolate this information from a person using technologies from Vastmindz, which means that insurers can extract data easily and at low cost, allowing them to make a quicker underwriting decision.

Use Risk Adjusters

For health insurance underwriters, one of the greatest fears is getting stuck with a risk that costs more to cover than it pays out in claims. Their risk adjusters ensure they don’t have to foot an unwelcome surprise bill by reducing their exposure to these issues. Through the use of risk adjusters at every stage of their underwriting process, health insurance companies can save time and money, helping them increase profits.

Communicate with Agents in Real Time

In a world where consumers expect everything, and we mean everything, instantly, how can insurance companies provide instant access to information? Well, one option is to empower your agents with real-time access to information via smartphones. Simply put, when an agent receives an inquiry from a consumer, they can quickly retrieve a customer’s underwriting and medical information on their smartphone, lowering the time spent answering and resending questions. This leads to a happier consumer and increased profits.

Prevention of a health incident helps increases profit

If a health incident does occur, it can be financially catastrophic for an individual and their family, with massive amounts of money being spent on hospital bills, rehabilitation, and medications. Reducing health underwriting risk helps increase profits in two ways: it gives underwriters more accurate information about customers’ risks, which helps them price policies accurately and it makes insurance companies appear more trustworthy to potential customers. This could lead to increased sales in future years, as well as better returns on premiums from existing customers.

To learn more about how Vastmindz can help in the insurance area, please contact us now.

ReCENT PostS

COMMENTS

Share this aticle

Recent posts

NEWSLETTER

Get the latest news & updates from Vastmindz

AI-powered insights for
health & wellness

Our solutions are not a replacement for a healthcare professional and our solution does not diagnose, prevent, provide any treatment for any form of illness or disease.

Our Solutions

Sign up to get the latest on sales, new releases and more…

Copyright 2022 Vastmindz AI Ltd All Rights Reserved.