See all press
May 1, 2024

Hidden costs haunting your IBNR? Hereโ€™s how to turn it around.

Hidden costs uncovered: how can data make health insurance more accessible?๐Ÿ‘‡

In the world of health insurance, accurate IBNR (Incurred But Not Reported) reserves are crucial for financial stability. Unfortunately, hidden costs can lurk within traditional insurance value chains, leading to unforeseen expenses and unreliable forecasts. ย 

The Result? Challenges in setting accurate pricing, increased risk of solvency issues, and ultimately, a situation where health insurance can become less accessible for everyone. ย 

But what if you could gain a clearer picture? ย 

Step 1: Exposing the shadows with digitization

Siloed data is siloed risk - legacy systems often lead to fragmented data across claims processing, underwriting, and policy management. This data isolation hinders the ability to identify cost drivers that might be driving up premiums.

๐Ÿš€ Embrace a comprehensive digital infrastructure that captures information across your entire value chain. ย 

๐Ÿ’ช A single source of truth allows for cross-analysis, uncovering hidden cost drivers that might remain invisible otherwise. This newfound transparency can empower insurers to make data-driven decisions that potentially lead to more efficient operations and ultimately, more competitive pricing for consumers.

Step 2: Unlocking the power of real-time data

Traditional reporting creates a delay, hindering the ability to see current IBNR exposure. This means you're essentially making decisions based on outdated information, potentially leading to higher premiums to compensate for unforeseen risks. ย 

๐Ÿš€ Invest in real-time data solutions to track claims activity as it happens. ย 

๐Ÿ’ช A more accurate picture of your current IBNR allows for proactive risk management and strategic resource allocation. This translates to potentially lower costs down the line, paving the way for more affordable health insurance plans. ย 

Step 3: Turning uncertainty into confidence

By leveraging historical data trends and real-time insights, you can make informed predictions about future IBNR reserves. This empowers you to:

๐Ÿค Set accurate pricing due to a clearer understanding of potential future claims, potentially leading to more competitive offerings.

๐Ÿ“ˆ Make data-driven decisions to move beyond guesswork, potentially leading to a more efficient and cost-effective healthcare system for everyone. ย 

By digitizing your insurance value chain and embracing real-time data, you can gain a significant advantage. This approach leads to greater transparency, improves IBNR accuracy (and even decreases your IBNR), and empowers you to navigate the insurance landscape with more confidence.

Ready to unlock the possibilities of real-time insight?

We're here to help you unlock the power of data and contribute to happier and healthier members and gain a clear picture of your IBNR exposure. Book a demo today to learn more about how we can help you transform IBNR from a liability to a strategic advantage.