— Highlight 1
A majority of the 7,500 respondents to our Voice of the Customer Survey want to improve their physical (69%) and financial (67%) wellness. Consumers are ready to turn to insurers for their wellness needs, especially those with innovative value propositions that enrich customer relationships. Consumers rated insurers number one and two most preferred partners for physical and financial wellness, respectively.
— Highlight 2
As part of our survey, we identified Fast Mover and Slow Starter personas based on consumers' willingness to share data, participation in activities for physical health and financial wellness, and use of tracking devices and tools. Fast Movers are now the majority (59%), and they expect hyper-personalized wellness services (73%). Insurers should take notice and evolve their value propositions appropriately.
— Highlight 3
To understand insurance carriers' maturity around wellness, we interviewed 168 insurance executives worldwide. Most insurers (83%) have launched wellness activities based on traditional, product-centric initiatives that typically focus on health awareness, financial literacy, and planning tools. Our survey indicates that relatively few firms (17%) offer hyper-personalized services such as mobile apps that gamify wellness, customized budget tracking tools, tailored social media communications, and rewards and loyalty programs in response to growing customer expectations. However, those that do so realize significant benefits around engagement, distribution, and marketing.
— Highlight 4
InsurTechs are ahead of insurers in the key capabilities to deliver hyper-personalized experiences, namely AI/ML (28% InsurTech vs. 14% insurers), cloud (44% InsurTech vs. 19% insurers), and in line on product innovation. Still, fewer than half (40%) of insurers effectively co-create or innovate with strategic or ecosystem partners.
— Highlight 5
Through our analysis, only 8% of insurers have established compelling Wellness-as-a-Service propositions and built the necessary capabilities: we call this small group Frontrunners. 29% of insurers are in the Advanced category, and 63% fall in the Mainstream category. Frontrunners' industry-leading capabilities illustrate why partnerships with InsurTechs, AI and ML use, personalized nudges, and data integration are worthy targets.
— Highlight 6
Insurers seeking to bolster policyholder engagement and deliver growth need to rethink what they should offer, where they should invest, and how they should monetize their propositions. For individual lines, the focus will be on deeper customer engagement, customized nudges, continuous underwriting, and on promoting the tangible benefits of wellness over and above the peace of mind provided by core protections. For group lines, redesigning benefit packages and building the capabilities for easy group-to-individual hand-offs will be critical.
Wellness-centric strategies can strengthen customer relationships and spark new growth for life and health insurance providers. But to seize the most profitable opportunities, insurers must invest, strategize, prepare, and implement complex change - all the while competing with a broad range of players in the marketplace. Capgemini's research shows that only 8% of insurers have established effective wellness-centric value propositions and built the necessary capabilities: this report offers a roadmap to deliver Wellness-as-a-Service in personal and group lines.