The landscape of long-term care is significantly going through a profound transformation as the increasing ‘Aging Crisis’ is shifting towards ‘innovation opportunity’. Infact, the population which is aged 65 and older is projected to reach 1.5 billion which is nearly double from 2022. With this number increasing, there is an urgent need for efficient, compassionate as well as personalised elder care. Fortunately, technology is really stepping up and is offering solutions which actively promise to revolutionise on how we can support the senior citizens.
Keep reading to dive deeper!
Aging Crisis v/s Innovation Opportunity
The UN predicts that by 2050, 1 in 6 people globally will be over the age of 65 Remote Patient Monitoring (RPM) can reduce hospital readmissions by up to 20%. For a long time, the narrative that surrounds aging has been one of the critical crises. The sheer volume of individuals who are in need of long-term care, coupled with workforce shortages and rising costs, is a daunting picture to look at. But there is a silver lining which is looming large technology.
With immense potential of advanced technology, it is driving significant innovation opportunities and playing a pivotal role in addressing these challenges. There is a good rise in the number of innovative solutions which senior citizens are adopting- from AI powered monitoring systems to telehealth platforms, these technological innovations are truly proving to be transformative for elders. The perspective of reactive ‘Aging Crisis’ is shifting from a reactive, resource-intensive model to a more proactive and more personalised one.
This leaves a lot of scope for Carriers to offer more personalised solutions as they will be getting access to a vast amount of data that will be recorded in these technological solutions. So, instead of viewing aging as a burden, we can embrace it as a crucial opportunity to leverage technology for driving betterment in our society.
Human-Technology Partnership
At the heart of this transformation, lies the concept of a more human –technology partnership. While there is a common notion that technology will be replacing human caregivers, but it isn’t true, it’s all about empowering them. AI assistants can significantly help in streamlining administrative tasks, and predictive analytics can significantly anticipate health needs and robotic aids can assist with physical tasks.
Hop onto the next section to take a closer look at how human-technology partnership looks like for elderly care.
Artificial Intelligence (AI): Predictive and Personalised Care
The world is definitely not unknown to AI, today. One of the cornerstones of this transformation is the integration of Artificial Intelligence (AI) into the existing system of elderly care. AI algorithms can significantly help in enabling predictive and personalised care. In diagnostics, AI can analyse amounts of medical data sets for detecting early signs of diseases, often before the symptoms even appear. Early warning systems, powered by AI can significantly help in monitoring vital signs as well as detect anomalies which alerts caregivers to potential health crisis.
In addition to this, AI facilitates the creation of personalised care plans which are tailored to the unique needs and preferences of everyone. By analysing the vast amount of health data, lifestyle factors and personal preferences, AI can prove to be very helpful in optimising treatment plans, medication schedules, and daily routines. This will be ensuring that seniors can receive the most effective and compassionate care which is possible.
Smart Device Adoption among Seniors
Complementing AI’s capabilities is the increasing adoption of smart devices among seniors. These smart devices are more than just gadgets; these AI powered tools significantly enhance autonomy, promotes health awareness and offers safety monitoring. Smartwatches and fitness trackers significantly empower seniors in tracking their activity levels, heart rate, and sleep patterns while establishing a sense of control over their well-being. Smart home devices like voice assistants and automated lighting systems, create a more safer and convenient living environment, especially for the elderly population who live alone. Approximately, 30% of seniors live alone, increasing the need for technologies which address loneliness and mental health.
In addition to this, GPS enabled devices and fall detection systems offers peace of mind for both seniors and their families, this ensures prompt assistance in case of emergencies. This integration of smart devices empowers seniors to live more independently while also staying connected and safe.
Democratizing Quality Care and Data-Driven Decision Making
Technology is playing a key role in long-term care. With its potential to democratize access to quality care. Telehealth platforms, remote monitoring services, and online support networks can significantly help in bridging the geographical barriers as well as connect seniors in remote areas with specialised services. Wearable sensors, smart home devices and electronic health records generates a wealth of data can be used in improving care delivery.
AI algorithms can significantly help in analysing this data to identify patterns, predict health risks, and also personalise treatment plans. This data-driven approach will significantly be enabling caregivers to make more informed decisions, optimise resource allocation and offer more proactive interventions.
Opportunities for Insurance Companies
With these technological shifts, insurance providers stand to gain immensely by adapting their offerings and strategies:
Better Risk Assessment & Underwriting
The newer technology solutions are offering opportunities to the insurers to better enhance their visibility into the policyholder’s health data and enhance their underwriting. With wearables and RPMs insurers are getting access to real-time data and this is aiding them in creating more dynamic and accurate risk profiles. Additionally, this accuracy is getting translated into more accurate risk segmentation and allows the insurers to better understand their pool of insured individuals while also enabling the underwriters to enhance their risk analysis lens based on health trends and actual behaviour.
Preventive Care= Lower Claims
The integration of health technology into insurance is not just about assessing risk, but its also about actively promoting healthier lifestyles but also about preventing costly claims. By utilizing the data from the wearables and RPM, insurers can offer personalised health recommendations, reminders for medication for check-ups and also early access to telehealth consultations. This also offers a good opportunity for reducing the overall claims expenditure. In addition to this, the early intervention in the Long term care (LTC) policies can significantly lead to cost savings by potentially delaying or mitigating the need for a full-time care and also leaves the opportunity for developing more sustainable LTC products.
With elderly population embracing the wearable technology, there is a good chance in identifying the risk factors and promote preventative measures for critical illness such as cardiovascular diseases. This will allow the insurers to lower their payouts on critical illness policies and also lead to improved profitability in the segment.
Personalised Product Offerings
The wealth of data and connectivity offered by health tech enables insurers to move beyond one-size-fits-all policies and create highly personalized offerings. This presents a significant opportunity to attract and retain health-conscious customers, who are often a lower-risk pool. It also fosters greater customer loyalty through ongoing engagement and rewards, potentially reducing churn. Similar to usage-based auto insurance, LTC plans can be tailored based on an individual’s actual health and functional status as monitored by RPM devices. In addition to this, Insurers can create comprehensive packages that integrate their core insurance products with relevant technology and services. This could include offering a discounted smartwatch upon policy sign-up, bundled with access to a telehealth platform for remote consultations and health management support. These integrated offerings enhance the value proposition for customers and foster stronger engagement.
Taking a look at a real-life example- Allianz Partners is partnering with startups to create on-demand insurance and care-at-home services bundled with long-term health plans for seniors using telehealth and home sensors
Expand to New Markets
Digital tools and remote monitoring capabilities are breaking down geographical barriers and enabling insurers to reach previously underserved populations. This opens up new and potentially large customer segments that were previously difficult or costly to serve. It allows for market expansion without significant capital expenditure on physical infrastructure. Additionally, it also leads to lower operational costs and increased efficiency. It also allows for greater scalability and the ability to adapt quickly to changing customer preferences.
Faster, Smarter Claims
The claims process, often perceived as cumbersome and time-consuming, can be significantly improved through the integration of AI and IoT data. Faster claims processing leads to increased customer satisfaction and improved brand reputation. It also reduces administrative costs associated with manual claims handling.
Additionally, there is a significant minimization of fraudulent claims which directly translates to significant cost savings and improved profitability. This increased transparency builds greater trust and reduces friction with policyholders during the claims process, potentially leading to fewer complaints and improved customer relations.
Taking a look at a real-life example- AXA Partners integrates smart home sensors and medical data from RPM devices to automatically flag valid care-related claims, reducing time and effort in long-term care claims.
Stronger Engagements
Moving beyond the traditional transactional relationship, insurers can leverage technology to build stronger and more continuous engagement with their policyholders. Continuous connection provides valuable data insights into customer behaviour and preferences, enabling more targeted communication and product development. In addition to this, Insurers can use these digital channels to deliver personalized wellness advice, medication reminders, and proactive care suggestions based on the data collected from wearables. By acting as a health and wellness partner, insurers can enhance their brand image and build stronger relationships with their customers, leading to increased customer lifetime value.
Ecosystem Partnerships
Partnering with telehealth platforms allows insurers to offer virtual consultations and remote healthcare services to their policyholders, especially in conjunction with data insights from wearables and RPM. This enhances access to care and supports preventive interventions. Collaborating with companies specializing in technology solutions for the elderly can help insurers better serve their ageing policyholders. This could involve integrating smart home devices for safety monitoring, medication management tools, and remote health monitoring solutions.
These partnerships allow insurers to cater to the specific needs of the growing senior demographic, offering specialized products and services that enhance their quality of life and potentially reduce long-term care costs. Additionally, Collaborations with smart home device manufacturers can lead to innovative product offerings and access to new data streams for risk assessment and personalized services, creating a competitive edge.
A Look at A Real-World Example-
Nationwide is exploring the use of AI and robotics in elder care, including testing eldercare robots to assist seniors with mobility and daily tasks. This initiative aims to enhance seniors’ independence and safety, reflecting a growing trend of integrating AI into in-home care services.
Looking Ahead…
The future of long-term care is quite bright and is filled with the promise of technological innovation and human compassion. By embracing human –technology partnership, democratizing quality care as well as leveraging data-driven decision making, there is a significant scope for AI powered smart devices to transform the regular elderly care scenario.
