As the health insurance market roars back after Covid, the value of add-on services and benefits for both insurers and consumers is becoming increasingly tested.
But add-on providers face a new challenge: how can they stand out in a crowded market even as they add value to the services of health and protection insurers.
Health & Protection hears it is those who can effectively communicate, collaborate, and tailor their offerings to the specific needs of their insurer and end-user clients which will be well-positioned to succeed.
From data-driven decision-making to tailoring services to each individual, providers must demonstrate how they can go the extra mile to provide value and prove their services are clinically effective, generate a return on investment (ROI), and align with the needs of insurers.
To gain insight into how industry leaders are seeking to grow in this market, we spoke to them to get an understanding of their strategies and how they are shaping the future of this dynamic market.
Effective services
One major issue for providers is proving how medically effective their services are.
For many, that involves looking at measures like ROI, reduction in absence rates, reduction in length of absence, recovery rates, improved wellbeing and reduction in insurance costs.
As Shamira Graham, chief commercial officer at Onebright explains: “We deliver psychological services which are evidence-based, which means that they are the first treatment of choice as outlined in NICE guidelines.
“We use clinically valid and reliable psychometrics to track clinical outcomes to ensure that our clients are receiving the highest quality effective treatment.”
However, Pamela Gellatly, group strategy director at HCML, adds that for some treatments and rehabilitation processes measurement is not always clear cut.
“There is ambiguity around what is medically or clinically effective and has been considered to be more of a human science than a natural science,“ she says.
“This is why we use the BioPsychoSocial (BPS) approach at the heart of what we do when we are assessing and treating patients.“
Surveys are also a key driver of gauging how services are being received in the market.
Dr Julie Denning, chartered health psychologist and managing director of Working To Wellbeing and chair of the Vocational Rehabilitation Association agrees these can provide valuable insight.
And RedArc commercial director Christine Husbands adds that the firm surveys all users to find out how the service was of benefit to them.
Guaranteed service
Another top priority for all providers is the ability to assure guaranteed service, in what appears to be an ever-growing market facing surging demand.
As usage of add-on services increases, providers are faced with the challenge of ensuring service levels remain high for both insurers and members.
HCML’s Gellatly admits this is a growing problem across the sector that is likely to continue.
“Data is key to understanding when these trends change, and we work with our customers to develop strategies to maintain service levels,“ she says.
“To date, we have never turned an individual away, and we believe that open communication with clients, supported by robust data and recommendations for addressing the issue, is crucial.“
ROI and value for insurers
While market acceptance is crucial, providers must also demonstrate the return on investment (ROI) of their services to insurers who foot the bill. If a service’s ROI is lacklustre, it won’t last long.
HCML’s Gellatly emphasises the importance of baseline data to measure ROI, noting: “ROI can only be illustrated if the client, insurer or other organisation has a baseline dataset that they can provide for the outcomes to be measured against.
“If a client can provide other data from which we can measure ROI then we will do so.“
Working To Wellbeing’s Denning adds: “We provide regular management information reports and other relevant outcome data to demonstrate ROI.“
But some providers, such as RedArc, take a different approach by relying on testimonials to showcase the impact of their services, noting such testimonials can carry substantial weight.
But for Telus Health simplicity is key, as it says no two insurers have identical priorities.
Luke Prankard, global leader of total wellbeing at Telus Health points out: “There is no point having the most effective clinically evidenced ROI proposition, if it’s cumbersome and tricky to use.“
Prankard argues that being innovative with engaging insured members and having a clinical structure and rigour is essential.
Communication is key
But in the competitive market, add-on providers must also demonstrate open, close collaboration, and a deep understanding of the insurer’s business strategy.
Providers that can effectively communicate, collaborate, and tailor their offerings to the specific needs of their insurer clients will be well-positioned to succeed.
Onebright’s Graham, for instance, says conversations with insurer clients can help in new product development.
“An example of services we have launched this year are specific gender health benefits, neurodiversity assessment and adapted psychological treatment, specialist children and young people pathways, and oncology pathways,” she says.
Similarly, HCML actively consults with insurers; tailoring services to their specific requirements and continuously monitoring feedback to ensure continuous improvement.
Gellatly notes the firm consults with its insurance clients around what their issues are and what their members need.
“We then tailor our services to meet the needs of the insurer and their customers, monitor the provision of these services including feedback from both the insurer and their members and we adapt accordingly,“ she adds.
Conversation is also key to product development for Working To Wellbeing, as Denning explains it has created several services as a result of close collaboration including its cancer work support service, long covid support and menopause and neurodivergence services.
For Telus Health its all about understanding how the insurer’s wider proposition works and what it’s goal for insured members is.
Prankard continues: “There is no point offering a reduction on someone’s daily coffee intake or money off at an online retailer, when this has no relation to the insurance product offered.
“That is why we align our products and services to the insured member in supporting them to proactively look after their wellbeing and therefore align this to the insurance product and offering.“
Differentiation
So having got all that right, creating a product that is valued by end users and insurers, there is still one more hurdle, and that is to ensure that in a crowded market, add-on providers are able to differentiate themselves from fellow competitors.
Providers need to stand out from the crowd. How do they go about that?
Some do so by carving out a unique niche, claiming that space as their own, but for others, the situation requires deeper assessment.
HCML’s Gellatly says it is critical to assess the clinical symptoms and the underlying causation and contributory risk factors.
“We are then able to address the multifactorial nature of an illness not only for the short-term but also to reduce the risk of future illness.“
Onebright’s Graham adds that by using data to inform clinical governance models, every patient is tracked and monitored after each therapy session making it scalable.
But for Telus Health, Prankard explains the organisation aims to create an experience that makes members want to engage in programmes.
Meanwhile for RedArc Husbands notes the service caters for all long-term physical and mental health conditions plus bereavement in adults and children.
“The service is tailored to the specific needs of each individual. This means that the service is relevant to anyone with a long-term health condition or bereaved,“ she adds.
