The convergence of AI and behavioural decision-making: Augmented Neural Nudges in health insurance

In the future, choosing healthy options will come as naturally as breathing. Expect a state where you are gently persuaded to choose the healthier option without losing control of your internal battles over whether to get a salad or a burger, go for a run or binge-watch a TV. This is the exciting future of augmented neural nudges, a theory that has the potential to completely change the way we think about health and well-being. 

The term "nudges," which was invented by behavioural economists Richard Thaler and Cass Sunstein, is essential to this paradigm shift. To put it simply, a nudge is a little prod towards a positive behaviour without taking away a person's autonomy. Their goal was not to dictate options but rather to design them in a way that makes the healthier path the easier one to take, encouraging people to make wise choices without restricting their freedom of action.  

By taking advantage of the subtle psychological undertones, these mild reminders—which range from texting vaccine appointment reminders to placing healthier food at eye level in cafeterias—sparked a revolution in the fields of human well-being and transformed  our health landscapes.

However, what if we could increase these nudges' effectiveness even more? Step into the world of augmented neural nudges, where advances in technology and neurology come together to directly affect how people make decisions. This is about using our knowledge of the brain to reinforce our natural tendency towards healthy habits rather than using force or control. Think about wearables that monitor your health and can identify moments when you may be at risk of choosing a less-than-optimal course of action. Your gadget can remind you of your healthy eating objectives with a gentle vibration or visual hint, which increases the likelihood that you'll choose a piece of fruit instead of giving in to your urge for a sugary snack before you even realise it.

Alternatively, think about an app that leverages artificial intelligence (AI) to identify when you are most likely to miss a workout and, based on patterns it has observed in your behaviour, delivers a motivational message right when you need it.

These augmented neural nudges are only one component in a symphony of interventions meant to create an atmosphere that consistently encourages healthy choices. They don't operate in isolation. They are supported by a framework of behavioural insights that are all designed to enhance your natural capacity to make health-conscious decisions. This is against a backdrop of humans being predictably irrational.

We wanted to reflect on meaningful conversations with trailblazers in the health insurance space and feel we needed to encapsulate some of the current thinking under the term of augmented neural nudges. This could help with developing a learning community of practitioners interested in this topic. There is much to be learned from each other. 

How do we leverage Augmented Neural Nudges in personalised health insurance?

In the future, imagine a seamless integration of AI with behavioural decision-making  to implement Augmented Neural Nudges that reduce health disparities and inequalities and customise individual health insurance. Artificial intelligence (AI) creates customised insurance plans that take socioeconomic background into account by intelligently analysing a variety of health determinants. Meanwhile, nudges are used to promote healthy behaviours in all societal strata. This strategy levels the playing field and promotes population health by guaranteeing that individualised counselling and preventative treatment reach marginalised areas. Together, AI and inclusive well-being nudges push towards a new paradigm for health insurance that reduces disparities and promotes everyone's health, regardless of zip code and socioeconomic level. Health insurance then plays a key role in the levelling of health across society which could be refreshing. AI then becomes a steward of equity. This could be the beginning of a time when everyone will be closer to having an equal chance to live the healthiest possible life. It is also the commencement of equitable, personalised health coverage. In reality this would involve:

• Personalised health plans: AI structures and simplifies choices for customers by evaluating enormous volumes of data. By enhancing choice architecture, AI-backed platforms can incorporate the concepts of nudging, guaranteeing that customers can quickly locate advantageous health insurance plans that are catered to their needs. If done in a measured, ethically sound manner, the gains outweigh the scare-mongering.
• Best options: Richard Thaler highlights that default settings can guide people toward positive results without requiring conscious choice. These default settings in health insurance ecosystems can be personalised by AI, guided by behavioural insights, and can discreetly direct people toward the best options.
• Timely reminders and feedback: Nudging frequently entails timely interventions. Based on a user's activities in a health app or data analytics, AI can send reminders, nudge users about health benefits or future checkups.
• Rewards-based incentivisation: People respond to rewards. AI technologies can tailor the incentives in health insurance policies, gently rewarding healthy behaviour and nudging consumers toward positive actions by evaluating user motivations.
• Including social norms: We frequently make the same decisions as our peers. AI can demonstrate social proof by displaying user reviews, peer activity, or ratings. By incorporating behavioural insights, users might be directed to choose particular health advantages or efforts.

The above list is not exhaustive and successful organisations such as FWD Insurance Vitality and Swiss Re , to name but a few have been weaving a rich 360-degree offering to both current customers and those who are not presently customers. We see intricate offerings that put the health insurer in the space of ‘health and wellness partner’ and the golden thread driving the technology is a strong amalgam of augmented neural nudges, microhabit formation and a bold radical vision around what customers want and need. Some are even talking about having an impact on healthspan and lifespan.

Augmented Neural Nudges and Health Insurance in the Future

 For the field of health insurance, the nexus of AI and behavioural decision-making presents a new potential frontier full of opportunities. AI algorithms can now scan enormous volumes of user data to comprehend unique habits, preferences, and pain spots as they get more complex. These findings can be used to create AI-driven platforms that provide options in a way that is consistent with the behavioural decision-making needs of human beings. Insurance companies may anticipate consumer demands, proactively address common problems, and offer a seamless and intuitive experience by incorporating these insights into the design and functionality of digital platforms.

It is true that the proposed integration of AI, behavioural decision-making, and health insurance, while improving on adverse selection, raises the possibility that fine-grained data could unintentionally result in discriminatory pricing models or worsen coverage gaps for marginalised populations. A few key strategies are necessary to reduce these risks:

• Regulatory oversight: To stop data exploitation and make sure AI systems don't perpetuate pre-existing prejudices, robust regulatory frameworks must be put in place. Insurance companies need to be held responsible for clear algorithms that don't penalise people for things beyond their control.
• Privacy safeguards: To prevent sensitive data from being used against an insured person, data privacy regulations and anonymization methods should be put into place to protect individual health information.
• Ethical AI development: Fairness and equality should be incorporated into the design of AI systems, with ethical considerations at its core. This calls for the use of a variety of training datasets and ongoing results bias detection.
• Community engagement: By interacting with the groups and people most at danger of marginalisation, systems are built that meet the requirements of everyone, especially those who are often underserved by health insurance.
• Subsidies and incentives: Regardless of what personal data may indicate about health risks, governments and insurers can collaborate to offer subsidies or incentivise coverage for high-risk populations. This will guarantee that health insurance stays accessible and inexpensive.

By incorporating these safeguards into AI-powered Augmented Neural Nudges in health insurance, society may work towards a time where data is used to empower and protect rather than to exclude or price people out, promoting a fair healthcare system for all.

The Next Steps

The potential of augmented neural nudges in health insurance is limitless, despite the fact that it is still in its infancy. The health insurance sector may transform its strategy from being a purely transactional institution to one that actually knows, empathises with, and guides its users by incorporating ideas from the writings of Sunstein, Thaler, and Kahneman.

With the possibility of these enhanced neurological nudges becoming a reality, ethical issues become more pressing. As we learn more about how the human brain functions, the line between influence and direction, autonomy and manipulation, becomes increasingly finely balanced. Talks on consent, privacy, and the fair application of this technology lead the way forward.

Augmented neural nudges have a great deal of potential to improve health outcomes. In a society where chronic illnesses are common and frequently avoidable with lifestyle modifications, the capacity to subtly influence people to adopt better habits has the potential to revolutionise health care. We must proceed cautiously as we envision a day when augmented neural nudges are a natural part of our daily lives, but we should equally be optimistic about the prospect of building a society in which making the healthy decision is not just the easy but also the preferred one. We may look forward to a time where health insurance actively promotes better lifestyle choices, resulting in improved well-being for everyone, as more insurance companies come to understand the potential of this fusion.

A seismic shift in the health insurance industry is about to occur and in some places is already occurring. The industry can genuinely reinvent how people view and engage with health insurance by fusing behavioural decision-making insights with cutting-edge technology, turning it into a compass for improved health and wellbeing. #healthinsurance #futurehealth #superapps #monstarlab