PARIS–(BUSINESS WIRE)–Capgemini and Qorus‘ Opening World Life and Health Insurance Reportpublished today, shows that customers rank insurers among their top two preferred providers1 for physical and financial wellness advice. However, most insurers are not focused on reaching out to customers and educating them on how to embrace and consistently use wellness solutions. Amid today’s macroeconomic and political uncertainties, as well as the ongoing pandemic, policyholders have become more aware of the importance of physical and financial well-being.
Wellness-as-a-Service offers a flexible model for life and health insurers looking to align their business with changing user needs. To enable wellness-centric value propositions, insurers must prioritize the development of a modular, data-driven, and platform-centric technology architecture to unlock the full potential of proprietary and third-party data. This debut report provides insights into customer preferences and a roadmap for insurers to deliver wellness-as-a-service across individual and group lines.
Understand wellness-driven customer behavior
With increasing life expectancy and challenges such as demographic trends, the pension gap, medical inflation and the shortage of healthcare professionals, the topic of wellness is moving into the focus of customers. The report found that 69% and 67% of customers are interested in physical and financial well-being, respectively, and 37% and 24% of policyholders, respectively, rank insurers as their top potential partners for physical and financial well-being, respectively.
Innovation required to enable hyper-personalized services
Consumers are ready for the transformation. According to the report’s findings, 83% are looking for on-demand customer services, 78% for ongoing physical and financial advice, and 74% for hyper-personalized, value-added services and rewards. However, only 8% of insurers have established effective wellness-centric value propositions and built the necessary skills. The report’s findings suggest that InsurTechs are ahead of insurers in the key capabilities for hyper-personalization, namely the use of artificial intelligence/machine learning (28% InsurTech vs. 14% insurers) and cloud (44% InsurTech vs. 19% incumbents) . The two are aligned on product innovation. Yet only 43% of insurers are working effectively on development or innovation with strategic or ecosystem partners.
“The past two years have shown that wellness needs to be a priority and insurers need to understand how to deliver wellness services effectively. This report shows the need for insurers to transform and focus on hyper-personalized services that meet customers’ unique needs,” he said Samantha Chow, Head of Global Pensions and Health Insurance, Capgemini. “This means moving to a data-driven “Wellness-as-a-Service” model with technological innovation that puts the customer first. This, in turn, will enable deeper engagement and help insurers reach customers when they need it most.”
According to the report, to meet new expectations, insurers must focus on three core priorities to help clients connect physical and financial well-being initiatives:
First, insurers can help policyholders rebuild their physical well-being through access to emergency and regular medical care; and their financial well-being through meeting current financial needs.
Second, insurers can help policyholders do this impede future physical well-being issues by ensuring adherence to medical prescriptions, physical therapy protocols, or routine spa visits impede financial challenges by helping clients prepare for unexpected expenses or educating them about income protection products.
Finally, insurers can help policyholders to enhance physical well-being through ongoing health counseling; and financial well-being through better financial planning options, opportunities and education.
John Berry, CEO of Qorussaid “In recent years we have seen our insurance partners innovate and evolve towards a prevention mentality to the benefit of all parties. In fact, customers do better with insurers who genuinely care about their well-being. Insurers and government organizations are seeing the benefits of reduced recovery times and prevented health problems, facilitated by advances in technology enabling better aftercare and support for all.”
According to the report, insurers will benefit from the adoption of a wellness-as-a-service framework built on a deeper understanding of customer expectations to transform customer engagement from a transaction-based approach to a relationship-based approach. This enables hyper-personalized wellness initiatives by leveraging technology, building a wellness-focused business model, and developing an ecosystem across InsureTechs, HealthTechs, BigTech, and wellness providers.
Execute key initiatives to meet customer expectations
The report concludes that along the way, insurers need to rethink what they offer, where they invest and how they should monetize their offerings. For individual lines of business, the focus is on stronger customer engagement, tailored nudges, ongoing underwriting and promoting the tangible benefits of well-being that go beyond the security offered by core safeguards. For group leaders, redesigning service packages and building skills for group-to-individual handovers is critical. That means educating employers on how employee wellbeing increases employee retention and productivity, the benefits of personalized benefits, and the growing popularity of optional features versus one-size-fits-all offerings.
The 2022 World Life and Health Insurance Report draws data from three main sources – the 2022 Global Insurance Voice of the Customer Survey (over 7600 customers), the 2022 Global Insurance Executive Interviews and the 2022 Global InsurTech Executive Interviews. Together, this primary research covers insights from 24 markets: Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, India, Indonesia, Italy, Japan, Saudi Arabia, Mexico, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Arab Emirates, United Kingdom and United States.
For more information go to: https://www.worldinsurancereport.com/lifeandhealth
Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. The group is guided every day by its goal of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and diverse organization with over 350,000 team members in more than 50 countries. With its strong 55-year heritage and deep industry expertise, its customers trust Capgemini to meet the full breadth of their business needs, from strategy and design to operations, driven by the rapidly evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering and platforms. The group reported global sales of €18 billion in 2021.
Get the future you want | www.capgemini.com
Qorus (formerly known as Efma) is a global non-profit organization founded in 1971 by banks and insurance companies. It helps its members reinvent themselves to succeed – go further, be faster and work together. Our global ecosystem brings together valuable insights, inspiring events, rich data and active global communities in one place.
With over 50 years of experience, Qorus provides a neutral space for sharing and collaborating on best practices while providing diverse knowledge and a global reach – serving more than 1200 financial groups in over 120 countries. Headquartered in Paris, Qorus serves financial institutions on every continent with offices in Andorra, Bangkok, Bratislava, Brussels, Dubai, Istanbul, Kuala Lumpur, London, Milan, Seoul and Tokyo.
Learn more at www.qorusglobal.com
1 The top 2 preferred physical wellness partners are insurers (37%) and medical advisors (33%). The top 2 preferred partners for financial wellbeing are banks (40%) and insurance (24%).