India’s largest health insurance provider Star Health Insurance is going under and now, five companies are in a race to acquire it. Perhaps they should slow down there. The health insurance industry has a bigger issue on their hand and it goes by the name of blockchain technology.
STAR HEALTH AND ALLIED INSURANCE GOING DOWN; BLOCKCHAIN GOES UP
Five companies just made the shortlist to purchase the declining Star Health and Allied Insurance. The proposed deal values India’s largest health insurance provider at Rs. 5400 crores ($65 billion). With a price tag that large, one would think the health insurance industry is going strong. In many ways, it is but for how long? Since blockchain technology first hit the scene, a new future for healthcare awaits.
BLOCKCHAIN TO TRANSFORM STAR HEALTH AND ALLIED INSURANCE
The blockchain revolution is tearing its way into the healthcare industry as we speak. In the future, companies like Star Health and Allied Insurance will not exist like they do now. A study from IBM finds that 16% of healthcare executives have real plans to use the technology within a year
Furthermore, 56% expect to do so by 2020. So what does this mean exactly? Well for one, blockchain will disrupt the current healthcare industry by creating a common database of information that insurance providers could access no matter what medical system they use. Hence, this means more security, privacy and less time on meaningless bureaucracy. All in all, this lowers the cost of health insurance meaning less money for insurance providers and more money for patients.
BLOCKCHAIN RESTORES TRUST TO STAR HEALTH AND ALLIED INSURANCE
Ultimately, this technology will not “destroy” the healthcare industry. It just makes it more honest. Therefore, Bitcoin will not “destroy” banks or YouToken destroy loans. All these blockchain based projects do is enhance these already established institutions. Hence, with decentralization, everything becomes more clear and streamlined. The unnecessary middlemen who scrape pennies off the floor are no longer needed. Consumer and provider have connected once again.