The Future of Health and Wellbeing in Protection
Protection insurers that engage in promoting health and wellness will benefit from lower claims costs and higher customer uptake and engagement with protection products, which in turn will mean higher profits. Helping in prevention, detection, and management of diseases will lower claims costs. Meanwhile, giving customers more touchpoints with their insurance by managing their health will help increase consumer engagement and boost the perceived value of protection products. The UK population is already engaged with their health, which is something protection insurers should capitalize on. With the NHS under strain, anything the protection industry can do to promote health and wellbeing will be beneficial.
Insurers must encourage customers to share data by highlighting benefits in terms of financial rewards and the ability to improve health, while allaying concerns about data privacy and security. Younger consumers are more open to sharing data, and so over time this will become standard in the protection industry.
Customer data should be used to personalize policies for individuals in terms of premiums and advice to manage health and wellbeing. It can also help streamline the purchasing processes by automating underwriting. Tailored policies should be created for high-risk customer groups or for those with specific needs.
Remote and constant customer monitoring through the Internet of Things (IoT) will be used by insurers and healthcare providers to provide a proactive health service. Tracking data can detect abnormalities, which can lead to diagnosis or intervention. Data can help customers manage already existing conditions, can be used to monitor health, and can even prevent disease occurring.
The report The Future of Health and Wellbeing in Protection, provides an overview of the health and wellness market. It discusses the potential benefits for insurers entering the space and explores current consumer engagement, attitudes, and retail spending. It also examines how insurers can use customer data to improve their proposition.