Health insurance

Relevance of brokers in the health insurance industry

Insurance brokerage firms can submit plans for all health insurance providers with which they are associated.

The role of brokers in the health insurance segment has been enhanced by their ability to offer multiple product options and unbiased advice to consumers using smart technology and efficient processes.

India’s health insurance industry has witnessed unprecedented growth over the past year, mainly due to pandemic-related demand. Additionally, more than 100 new plans were launched by health and property and casualty insurance carriers, along with innovative processes for better reach and customer service, in line with regulatory guidelines.

Despite this, health insurance penetration still remains below average in India. This gap can be significantly bridged by licensed insurance brokers as intermediaries who favor the customer entirely and not a particular insurance company.

Insurance brokers play a pivotal role in the health insurance industry in India as follows:

1. Customer focus: Brokerage firms act as a reliable intermediary for consumers, as they provide unbiased and neutral advice for insurers. As licensed intermediaries for all health and casualty insurance companies, brokers don’t like any particular company; rather suggest options to interested buyers based on their personal health insurance needs.

2. Needs-Based Approach: A reputable broker will always assess consumer demographics and demands in order to offer the right advice for the most appropriate and personalized plan option. With in-depth product knowledge, brokers can convey complex health insurance terms in a simplified way to empower consumers.

3. Multiple options for smart decision-making: Insurance brokerage firms can present plans for all health insurance providers with which they are associated. Moreover, those who deploy the use of smart technology can do so in insightful and intelligent ways to enable the purchase of the right choice.

4. Technology-Based Information Sharing and Collection: The use of automated technologies such as cloud computing and intelligent automation enables digitally trusted brokers to collect and deliver personalized information to and from clients, respectively.

5. Multiple Communication Channels: Brokers also facilitate systematic, fast and prompt customer service by using chatbots and other electronic means of communication. It allows transparent data management and personalized correspondence.

6. Hassle-Free Claims Management: The convergence of insurance carriers and third-party administrators on a common technology platform hosted by digital brokers helps policyholders manage paperless claims and accelerate turnaround times.

7. Consumer Insights: Brokers are able to offer insurers relevant information on consumer profiles and needs, in order to create innovative and comprehensive products.

Conclusion

Health insurance brokers support the industry by liaising with insurance carriers and TPAs ​​to expand multiple product options, manage customer requirements, and skillfully handle claims operations in a balanced and insightful manner, thereby benefiting consumers long-term.

by, Nayan Goswami, Manager – Business and Sales Group, SANA Insurance Brokers