Axa Health has launched a modular private medical insurance (PMI) plan for individual and family customers with no compulsory core option required.
The proposition is initially being launched to a small group of retail direct customers through the insurer’s website before its availability will be expanded to direct customers and then through intermediaries.
A group SME equivalent product is also “on the roadmap” but not being immediately developed.
The insurer also acknowledged it was open to utilising the data and other elemets of the proposition to help influence healthier behaviours from its policyholders.
The plan enables customers to choose from four areas: outpatient diagnosis and care, inpatient and day patient care, cancer care and mental healthcare.
There is no core element which must be included in the plan which would typically be for inpatient and day patient care.
However, Axa Health said if someone wanted cancer care and outpatient care as their combination it would, with full communication of its reasoning, enforce them to take the inpatient option because it recognised that cancer care typically required significant inpatient treatment.
All customers will have access to health and wellbeing benefits and extras, such as health assessments, an online GP service, a 24/7 health support line and discounted gym memberships.
Different target markets
Customers can build policies together with different elements for each person, even for those living at a different address.
The insurer said the product helped ensure people only paid for the cover they wanted, making it adaptable and personal, with cover available for the whole family, such as dependants at university.
Axa Health told Health & Protection that it was hoping the more selective and flexible nature of the product would make it more attractive to younger people or those who had traditionally not bought PMI.
The cost of the plan can also be managed by picking different options, such as applying a rolling excess, choosing where treatments take place or using guided care options, and limiting the number of specialist consultations per year.
As part of the development the insurer has updated its website buying to process to provide a running total of how much the policy will cost based on the customer profile as different elements are chosen.
Learn from rollout
Interim CEO Matt Vardy said the product had been developed following more than 1,000 hours of research including engagement with brokers.
He said it was aimed at ensuring customers could take control of their own and their family’s healthcare, no matter their circumstances or individual needs.
Marketing and proposition director Andy McClure (pictured) said the solution was being launched as a direct to consumer offering because the insurer wanted to get it right and test and learn from the rollout.
“We’re trying to work out if we can go to a small group of customers within the individual market. Let’s go direct because we can control it and it takes out the user complexity,” he said.
“It’s another set of systems if we can build this, then we can add brokers. We talked to brokers on the way through about what their expectations were when did the research.
“Not just users and customers, we spoke to brokers about what are their expectations, what do they find, what do they need? So they are part of the dialogue. They are aware this is coming.”
When asked about an equivalent group offering Vardy revealed an SME solution was planned.
“Within the SME market, it was only a couple of years ago we refreshed our offering in that space,” Vardy said.
“In that space at the moment we feel we’re meeting the demand, so we’ve got time we think to make sure we get all of this right before we then start to think how do we broaden out to the SME market.
“But is it on the roadmap? Yes.”
Technology and literature overhaul
Axa Health said the new plan had been made possible by major technological front end and back end developments, such as providing a new digital end to end process for quotes, onboarding and beyond.
The integrated online and offline systems mean support teams can assist customers at any stage, helping to provide a better and more convenient experience for customers, it added.
Personalised handbooks for every member, ensuring they have a simple view of what’s covered by omitting details of cover they have not opted for will be provided.
However prompts will also be given at strategic points, such as at annual renewal, to remind customers of the other elements and benefits available on the product.
The booklet has received a Fairer Finance accreditation.
