Insurers: promote wellness to cut back prices
Consumer demand for wellness products and services has been accelerated by COVID-19. This increased focus on wellness gives insurers the opportunity to innovate and create partnerships that bring positive results for their customers and their businesses.
Insurance companies find natural synergies with companies in the wellness ecosystem. Those who help clients stay healthy and independent can also help reduce or delay the costs of life, disability, and long-term care. It is a win-win for both the customer and the insurer if the need for such claims can be delayed or reduced.
Many seniors and caregivers are now particularly concerned about the need for long-term care. COVID-19 has resulted in disproportionate mortality in nursing homes, so there is an added incentive to help the elderly age on the spot.
Promote healthy aging
The increase in long-term care needs is caused in part by Alzheimer’s and other forms of dementia. During a recent Insurtech panel discussion, Elli Kaplan, Silicon Valley co-founder and CEO of Neurotrack, spoke about the impact Alzheimer’s had on her own family and her reasons for wanting to work in the field.
Neurotrack is building a cognitive health platform that allows individuals to check their cognition and learn about personalized lifestyle changes that can help keep their brain healthy and delay cognitive impairment. In addition, Neurotrack works with insurers on the pre-claim area to help expedite underwriting through remote cognitive testing for life and long-term care applicants.
Rewards for good health habits
Insurers are also finding ways to innovate beyond their core and better meet their customers’ wellness needs. For example, Manulife’s approach to behavioral insurance was made possible by the ManulifeMOVE app launched in 2015. Behavioral insurance allows the company to reward customers for sharing data about their healthy habits and decisions.
Customers respond. Around one million customers in six Asian markets are now using the app. The data shows that users of all ages are changing their behavior and continuing to use the program.
Do good by doing good
I have often said that insurance is ultimately about experience with the insurer there in order to support the customer in a difficult event. While this underlying truth will not change, technology, socio-economic challenges, and cultural values are constantly evolving. Consumers are now looking for trusted brands to support them and their families. Insurers that offer this support are more likely to be rewarded with customer trust and loyalty.
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