Business

Tharman: Insurers must do more with digital technology

Insurance firms can - and must - do a lot more to take advantage of digital technology, Deputy Prime Minister Tharman Shanmugaratnam said yesterday.

Mr Tharman said at the launch of Prudential Singapore's new office at Marina One that health insurers can tap digital technology to go beyond paying for medical claims to preventive care and encouraging a healthy lifestyle and habits.

He noted that some insurers have begun tracking users' health and habits through fitness devices and apps, and pricing in premium discounts for healthier lifestyles.

Healthcare can also be delivered and administered more effectively with digital technology, Mr Tharman noted, and insurers should encourage this.

"Tele-health is increasingly being used, saving patients time and money. Here in Singapore, we have been rolling out TeleRehab services for stroke patients.

"It delivers better health outcomes because doctors can monitor patients and make sure they follow through on rehabilitation without the inconvenience of regular physical travel to the clinic."

Apps and social media also present insurers with more touch points to engage their clients, Mr Tharman added, while telematics and Internet-of-Things devices enable data analytics, allowing insurers to deliver more customised and innovative products and services.

At the back end, he noted that the life insurance industry is testing artificial intelligence and blockchain to automatically trigger and settle claims.

With such changes, the role of the insurance agent will also evolve, Mr Tharman said. From selling life or health products, he must now offer more holistic wealth and risk management advice.

"Given the growing demand for risk management and compliance-related roles in the industry, I also encourage insurers to consider reskilling some of their agents to take on such roles," he said. - YASMINE YAHYA

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