Page 84 - India Insurance Report 2023- BIMTECH

72 India Insurance Report - Series II

Fortune Business. Executives see inflation, the threat of recession, and potential corporate layoffs in
2023 as creating a greater need for behavioural services as well as a financial challenge for providers.

Healthcare is becoming more consumer-driven - and home-oriented. A recent survey by JPMorgan of
leading healthcare executives found that nine in 10 industry leaders said they plan to complement their
traditional models, with a majority (52%) considering in-home care (52%) and virtual care (51%). Consultants
at McKinsey found that traditional home health and personal-care services still make up about two-thirds of
home health market revenues. However, emerging home care segments such as home infusions, home-
based dialysis, primary home care, and hospital-at-home models are growing rapidly. These services tend to
be more complex and reliant on technology, including data from wearables and home monitoring devices.

Behavioural Health Business expects more newcomers will enter the field and established providers
will expand beyond mild to moderate mental health conditions to address more serious conditions. And
while there may be more digital providers, it’s unlikely they will impact this space.

Some in the field believe the staffing challenges in health care will ease in 2023, while others are not
so optimistic.

4.8.Other Emerging Risks

Insurers have their work cut out for them. Beyond emerging climate risks, there are other risks that
are evolving that are perhaps even less well understood. Intangible assets, for example, could pose challenges
for the industry.

Much of the world’s value is now driven by intangible assets – marking a shift whereby the world’s
most valuable hotel chains used to be those with bricks and mortar on their balance sheet, now, it’s
Airbnb. Traditionally, insurance pricing has been driven by understanding tangible assets and exposures
related to that; hence insurers will need to adapt to build products which are relevant to companies
whose balance sheets aren’t driven by, or underpinned with, tangible assets.

Other emerging risks that have the potential for just as big of an impact on consumers include political
risk and the Internet of Things (IoT). Such risks pose difficulties to insurers in underwriting through
traditional models. To overcome these challenges, insurers need to deploy the best-in-class data and technology
tools that bring together disparate data sets from across their entire business enterprise and lines of business.
They should also look to incorporate external data sources that will provide context to the risks they are
identifying and intelligence to decisions they make and the platform that adds them in those decisions.

The belief that the key to adapting to evolving risks and being better equipped for future ones lies
with data is a commonly held one. Experts feel that “Unlocking a greater understanding of the data
behind these new risks, and quickly, is the secret to making new products insurable.” This will enable
insurers to achieve revenue growth in tandem with the right level of confidence in expected profitability.

“The latter is particularly important, as the huge levels of uncertainty in the world – geopolitically
and economically, particularly with respect to inflation – set the insurance industry up for a bumpy ride
in the coming years!”