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India's Health Insurance Faces Fraud Crisis
22 Nov
Summary
- Fraud and inefficiencies plague India's health insurance sector.
- AI and GenAI offer a three-pillar solution: Prevent, Detect, Deter.
- Rising claims costs may lead to higher premiums and reduced access.
India's burgeoning health insurance industry is currently facing significant financial strain, primarily driven by rampant fraud, operational inefficiencies, and violations of policy terms. These issues are contributing to substantial monetary losses within the system.
To combat these pervasive problems, consultants from BCG and Medi Assist Healthcare have proposed a comprehensive strategy. This approach hinges on leveraging advanced technologies like Artificial Intelligence (AI) and Generative AI (GenAI) to build a robust framework for prevention, detection, and deterrence of fraudulent activities.
Despite the expected growth in the insurance market, a critical concern remains regarding escalating claims costs. If not managed effectively, these rising costs are projected to result in increased insurance premiums for consumers and could consequently restrict overall access to essential healthcare services.
