What insurers really want from additional services providers – analysis

Record waits for NHS treatment intensifying the UK’s war for talent has meant use of additional services – whether dental, virtual GPs or mental health support services – is soaring.

In a cost of living crisis affecting both employers and employees, companies want to see results, as do insurers providing these services. That means monitoring is crucial to identify which offerings are actually being used and are adding value to the end customer.

But insurers are equally mindful that practitioners providing these services need to have the right qualifications and accreditations.

And working out which services will really resonate with end customers is easier said than done due to the ever changing needs of the population necessitating constant product evolution.

 

Increased use

“Across all our markets – health, individual and group protection – there is a significant demand for private primary care services, driving up utilisation of non-contractual benefits such Aviva Digital GP and our GP service, especially in relation to children,” Lisa Bartlett, head of health proposition at Aviva, tells Health & Protection.

“On Aviva Digital GP alone, we are seeing an average 11,000 private GP appointments made every month.”

But according to Bartlett, offering a broad suite of additional services that meet customers’ evolving wellbeing and financial wellbeing needs is “hugely important”.

“They make products more tangible as they give customers, employers and intermediaries greater touch-points that evidence a day-one value of their protection and health products,” she continues.

“Mainly digitally delivered, they also drive advocacy and are increasingly important in attracting and retaining business.”

For Jamie Page, head of protection distribution at The Exeter, it is important that these services are not just limited to “reactive” medical treatments.

“Lifestyle and nutrition consultations, regular mental health, and general wellness support can provide preventative treatment to support members in building better health foundations,” Page says.

“Given an increasingly health-conscious UK public, the industry needs to work together in highlighting the availability of benefits and how they can provide long-term value alongside insurance policies.”

 

Meeting quality standards and adding value

When it comes to assessing the value of offerings, Bartlett explains Aviva only procures added value services for its health and protection customers that meet its high quality standards for clinical performance and outcomes.

“This includes but is not limited to clinical efficacy, as we also factor in customer and commercial considerations,” Bartlett continues.

“Our clinical governance team review data and evidence for all proposed services and solutions, and provide a rounded view on that, with a particular focus on medical best practice overlaid with the customer experience and digital accessibility standards.”

According to Bartlett, products that provide added value through meeting customer wellbeing needs are the key differentiators.

“We would always seek new services that add value to customers and consider those services based on the clinical outcomes or other outcomes that would be of value to the customer, how they would improve our customer journey and how they could remain financially viable over time,” she adds.

“Having a holistic view of our customers’ wellbeing needs is key, in that the services that we offer are considerate of all elements of wellbeing; mental, physical, financial and societal, including delivering them sustainably.”

But while wage growth has finally caught up with inflation across the UK economy, firms have also been seeking to steal a march on competitors in the war for talent by providing meaningful health and wellbeing benefits.

 

Intensifying war for talent

Rus Waygood, protection sales manager at Canada Life, explains that amid a volatile job market, recruitment practices must be more competitive.

According to Waygood, the old straplines of a company pension or regular socials “simply won’t suffice” though insurers are also mindful of the fact that some of these added value services are regulated.

“Any support service strategies or intervention services are based on a wide tranche of considered evidence that is available,” Waygood says.

“The medicalised aspect of the Canada Life proposition that is available from Teladoc Health and Tooth Fairy are both Care Quality Commission (CQC) regulated, with Teladoc being a highly reputable global telemedicine provider and the Tooth Fairy app being the first of its kind and NHS tested and validated.

“All healthcare professionals that facilitate these services are UK registered and fully indemnified.”

 

Monitoring use

But there is no point providing any of these services at all if customers do not actually use them.

And this is something Royal London keeps a keen eye on.

“If they have an app for example Thrive, we want to see customers using it,” Jennifer Gilchrist, protection specialist at Royal London tells Health & Protection.

“It’s not that we’ve opened it up to all our customers and we expect 50% to use it. We want to see that ongoing usage so we go through internally what our requirements are to get good outcomes from it,” Gilchrist continues.

“So it’s not that we want 50% of our customers use it, we may want customers to use it on an annual basis for example. What we’re looking for is – is the app being used? Is feedback positive and if it’s not, we really need to understand what’s not hitting the mark and do we need to do something about it?”

Though Gilchrist says ongoing usage also needs to be monitored as the insurer wants to see this.

“Say for example, people use it six to nine months if it’s Thrive where they want mental health support,” she continues.

“In these cases they may not be going off sick but just want some support to keep them on the straight and narrow.”

James Walker, head of product and proposition at Legal & General, told Health & Protection the insurer had 1% of employees it covered access structured counselling last year.

“You might think that’s not a lot but it’s certainly getting used,” he added.

On whether these offerings are sustainable, Walker explains the key issue is keeping people in work.

“We know from the statistics we see of the people that are actually accessing the support, there is a reduction from the amount of people who are not in work when they actually start getting support and how many are in work at the end of their support.

“You could say they might go back to work anyway but it’s hard to prove categorically that support got them that positive outcome and got them back to work, but intuitively it seems right.

“We know that early intervention when problems occur actually has a more positive effect than allowing things to fester and go on for many weeks and months.”

 

Controlling claims costs and premums

And Walker explains that keeping people in work is a win-win for everyone as the employee is not going off sick and will not put pressure on other employees, he continues.

“If we’re paying fewer claims, that means we don’t need to charge as high insurance premiums when quoting for new business or if there is a rate review with that employer, we can offer out more competitive premiums,” he adds.

“We know a lot of this support is actually preventing claims.”

Elaborating on the insurer’s procurement processes, Walker adds that when deciding to go with a particular provider, the contract is put out for tender detailing what L&G is looking for.

“At a very high level we’re looking for providers who can provide health and wellbeing support to employees in a timely manner that provides an effective solution for what they’re looking for and meeting the employees’ needs at that time,” Walker says.

He adds that once the insurer goes with a provider, complaints about the service are also monitored, with a very low complaint rate normally a good indication that the service is of good quality and meeting customer needs.

 

Standing out in the market

For Adrian Matthews, head of employee benefits at MetLife UK, for insurers to be successful in the market, they must remain committed to continued evolution and flex to the needs of the modern workplaces and family make ups.

“All of our services are also reviewed periodically, and how, when and why these are being utilised is measured to ensure we’re always seeking to identify where we can enhance customer value even further,” Matthews says.

“And, while the new Consumer Duty regulations are necessary to spotlight the needs of those typically underserved; being led by our insights and portfolio data, it helps to identify where the gaps are to help ensure the future success of our proposition and offering.”

But another factor in the uptake of products is reminding customers they exist, Natalie Summerson, sales and marketing director at British Friendly Society, says.

“The services need to be easily accessible for people to use them, and the explanation of how the services work and how to access them need to be regularly communicated to members to remind them they have the access,” Summerson continues.

“We see a direct correlation of uptake and usage of the services when we remind our members of the offering throughout the policy year. Communication is key to engagement.”

 

Anna’s story

But ultimately the success of these products offerings comes down to the difference they actually make to customers.

And Rebecca Hill, head of marketing at Cirencester Friendly, cites the experience of Anna – one of the insurer’s members who suffered a complete breakdown in her mental health which meant she had to take time away from her business.

“Not only were we able to provide an alternative income, but through our Friendly Voice service, she had access to a personal nurse adviser who offered compassionate and empathetic support when she needed it the most,” Hill explains.

“Offering additional services on top of protection of livelihoods allows us to not only look after members’ financial wellbeing, but their mental and physical wellbeing and that of their families, increasing the value of being a member.”

 

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