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How to simplify processes for medical insurance?

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Accelerated by the pandemic, the digital transformation of how patients interact with healthcare providers, insurers, and banks, is now progressing at full speed.

Expectations around healthcare were already shifting before COVID-19 hit in early 2020, with patients seeking more transparency  and personalised services thanks to higher digital health literacy. Consumers also want to be more involved in their healthcare decisions.

Meanwhile, insurers’ goals in recent years have been to simplify operations and reduce paper-based processes, and banks are well-positioned to support this transformation through digital treasury solutions. This digital transformation is progressing at full speed.

These include embedding QR codes on renewal notices for premium collections. These codes connect to an interactive Point of Sales (iPoS) using the Faster Payments System (FPS), an instant payment platform. Payment confirmations and policy details can then be sent to insurers instantly through HSBC Business Connect, an API-enabled solution that also allows other payment options such as credit cards and e-wallets.

Virtual card programmes promoted by some banks can also facilitate bill settlement with hospitals and clinics. For instance, a patient under medical coverage usually pays partial for his or her medical treatment received, with the difference billed to the insurer by the hospital or clinic directly. Having each patient’s data tagged to unique virtual card number simplifies the reconciliation process, making it possible for hospitals and clinics to receive full payment within a couple of days. The added benefit of using a virtual card is the flexibility to customise card numbers for enhanced security. By leveraging cash management solutions, insurers today can easily automate and digitise their systems and processes, boosting operational and financial efficiency.

The rise of InsurTech is another trend worth noting. To navigate a changing landscape, insurance-bank partnerships have become common, such as HSBC and AXA’s packaged general insurance offering for HSBC’s business customers in Hong Kong. Other examples include efforts to expand distribution through the traditional bancassurance business model and the use of digital technology to provide value-added services, such as the offerings through HSBC Life Benefits+’s mobile app, which digitises and accelerates interactions between patients, insurers and medical practitioners.

New technologies and changing consumer behaviour are not only improving healthcare and insurance, but also creating opportunities for unique partnerships.

Find out more in Protecting the future, today: Insurers modernising cash management processes [PDF, 578KB].

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