OPINION: Use of innovation adds value for clients – IOL
JOHANNESBURG - As an industry life insurers should be asking themselves some pretty tough questions. One that should be keeping everyone up at night is, have we truly seen innovation (or at a minimum, evolution) that unlocks deep structural value for clients or is the sector instead paying lip-service to innovation, while maintaining its status quo?
Historically, insurers have believed that they were innovating by proliferating product.
This perpetuated a systemic push to sell insurance products that claimed to meet consumer needs by creating multiple iterations of themselves. In reality, this simply fed the pipeline distribution and did little to enhance client experience or value.
The status quo puts the needs of the insurer ahead of its clients - the opposite of what innovation should be. The deluge of product has even led to regulations ensuring offerings arent unfairly pushed on to clients by overzealous insurance people.
While there will always be a need for updated products, this is not the ultimate innovation.
If we are to challenge the status quo, we urgently need to reinvent the innovation agenda.
Client experience and access on their own terms is where the future sits. Simplicity (without losing comprehensiveness) should consume our attention. We need to deliver gold-standard products, and solutions that enhance relevance, without leaving the client behind.
Enhancing relevance requires a long, hard look at three focus areas:
* Personalisation: product evolution is not personalisation. Addressing the needs of each client has opened the door to areas like genetic testing as the ultimate personalisation tool, offering financial solutions tailored specifically to individual requirements.
Science allows todays insurer to know clients so well that they can match their needs continuously. The real value comes when the insurer manages the client as a sample of one, building a wider financial service offering thats clear, transparent and customised. A recent partnership between Investec and DNAFit is an example of this. DNA testing now gives the client insights around diet, food sensitivity, exercise response, injury predisposition, stress and sleep response. But this is not true innovation, just yet.
While genetic testing can tell a person a lot about their current health status and what medicine, diet and exercise approach will help them manage it most effectively, its the predisposition factors that allow insurers to create bespoke solutions for individuals instead of the status quo, the one-size-fits-all approach.
Genetic testing can indicate risk disposition for a range of conditions and allow pre-emptive treatment that can decrease risks before any symptoms appear. While we cannot ever remove risks completely, we can decrease them - something often referred to as the Angelina Effect, where actress Angelina Jolie opted for a double mastectomy given her genetic disposition to breast cancer.
Extreme as an example, but nonetheless an indication of where a client can opt to manage their circumstances. Its just that - the opportunity to make informed decisions. Increasingly, insurers are finding the tools to keep their clients healthy instead of simply managing situations when they become ill. This is how an insurer prioritises the client, based on the understanding that insurer needs are in fact aligned with their clients.
These are solutions for specific client needs rather than to fit a business model. How this is delivered in a high-touch, digital-first way is what will create exponential value.
* Technological enablement: modern digital enablement is increasingly the business mode of choice. But its not technology for technologys sake.
True innovation is when insurance embraces technology to give clients a better understanding of their insurance needs and health risks, so they can manage them better and enjoy a better quality of life.
Technology makes insurance a seamless process. It empowers clients with knowledge and an appreciation of its value. The future of our business is about clear, transparent value-add to clients.
Part of delivering simplicity is innovating around the process of buying insurance, risk assessment and medical underwriting. This process has long been a significant inconvenience for clients, making it ripe for innovation. Matching this with personalised, gold-standard products is what technology innovation looks like in the insurance space right now.
Modern life insurance is now technology-enabled to ensure every client can make the right lifestyle choices, and choose the appropriate insurance product with the right cover, at the right time.
* Client-centric solution design: our business is about clear, transparent value-add to clients. Its not just a focus on diet and wellness, but rather clear offerings based on fact (science) to help clients objectify information in their own lives. For example, along with objective advice and the choice on how to engage us; we are able to give you access to understand optimal diet and exercise information, matched with a personalised solution based on your individual needs.
The changing world also means the sector must relook what it considers relevant in terms of coverage. Stress, for example, is a marker for mental health and, linked to predisposed conditions, there is a level of predictability around what cover could be required.
On one level it raises questions around product innovation to meet needs, but at another level raises an ethical responsibility to provide a life-insurance solution addressing this.
At scale, looking at the lifestyle of professionals is a move in the right direction for client-centric solutions. This is innovation that we can - and should - be delivering.
Key to this is innovation that benefits clients first, which means that we would not receive client DNA data or use DNA testing to prejudice clients on their insurance policies, but rather keep the focus entirely on helping clients make better and more informed financial and health choices.
From an insurer perspective, this approach is also about de-risking in a transparent, open way. For example, pharmacogenomics can now also tell us how a person will react to medication in areas like cancer and mental illness. This has massive implications for optimising treatment rather than wasting time on trial-and-error approaches.
Choosing genetically indicated treatment timeously has huge meaning in terms of income protection, allowing people to work and earn for longer, and minimising treatment periods. Overall, there is also room for innovation around the type of insurance product offered.
South Africans are often adequately covered when it comes to insuring for our death, but not if something goes wrong and we are unable to work due to illness or injury. This means significant opportunities around income protection, disability and severe-illness cover.
The question then becomes how to give clients the insurance they need, and help with their health in a personalised way that adds value and adapts over time. Our sector needs to realise this and respond appropriately.
The insurer that does this best will have the agility to identify gaps, the courage to act on them, and the heritage and client equity to inspire trust. This is innovation.
Michael Goemans is the chief executive of Investec Life.
BUSINESSREPORT
Originally posted here:
OPINION: Use of innovation adds value for clients - IOL
- The Food Detective Instructional Video [Last Updated On: May 6th, 2011] [Originally Added On: May 6th, 2011]
- Cellulite Exercise with 20 day Instant result [Last Updated On: August 10th, 2011] [Originally Added On: August 10th, 2011]
- How to Treat Pills Effectively- Best Natural Home Remedies for Piles [Last Updated On: September 5th, 2011] [Originally Added On: September 5th, 2011]
- Best Foods For Weight Loss [Last Updated On: September 6th, 2011] [Originally Added On: September 6th, 2011]
- Creatine On Trial - How To Use Creatine Effectively (maybe) [Last Updated On: September 6th, 2011] [Originally Added On: September 6th, 2011]
- Effectively Treat IBS Irritable Bowel Syndrome with Naturopathic Medicine - Dr. Trebilcock, ND [Last Updated On: September 9th, 2011] [Originally Added On: September 9th, 2011]
- Low Carbs Diet - Carbohydrates diet explained [Last Updated On: September 9th, 2011] [Originally Added On: September 9th, 2011]
- How to Get Rid of Spider Veins Naturally [Last Updated On: September 10th, 2011] [Originally Added On: September 10th, 2011]
- SUPER Gorgeous Fat Woman [Last Updated On: September 11th, 2011] [Originally Added On: September 11th, 2011]
- Healthy Foods That Any Succesful Diet Plan Should Include [Last Updated On: September 13th, 2011] [Originally Added On: September 13th, 2011]
- Invitation to Dr. Will Tuttle's World Peace Diet Mastery Program [Last Updated On: September 13th, 2011] [Originally Added On: September 13th, 2011]
- Fat Woman Very selfconfident [Last Updated On: September 14th, 2011] [Originally Added On: September 14th, 2011]
- How to lose body fat effectively [Last Updated On: September 14th, 2011] [Originally Added On: September 14th, 2011]
- Low Carb Meal Plans For Weight Loss [Last Updated On: September 15th, 2011] [Originally Added On: September 15th, 2011]
- How To Lose 10 Pounds Fast [Last Updated On: September 17th, 2011] [Originally Added On: September 17th, 2011]
- Kidney Diet - The Best Diet for Kidney Disease Sufferers? [Last Updated On: September 20th, 2011] [Originally Added On: September 20th, 2011]
- Weight Loss Plans [Last Updated On: September 20th, 2011] [Originally Added On: September 20th, 2011]
- Weight Loss Solutions [Last Updated On: September 20th, 2011] [Originally Added On: September 20th, 2011]
- Weight Loss Meal Plan [Last Updated On: September 21st, 2011] [Originally Added On: September 21st, 2011]
- A Fast Way To Lose Weight [Last Updated On: September 21st, 2011] [Originally Added On: September 21st, 2011]
- Weight Loss Program [Last Updated On: September 25th, 2011] [Originally Added On: September 25th, 2011]
- Weight Loss System [Last Updated On: September 25th, 2011] [Originally Added On: September 25th, 2011]
- 3. The Last Diet You'll Ever Need [Last Updated On: September 27th, 2011] [Originally Added On: September 27th, 2011]
- Effectively Treat Psoriasis [Last Updated On: September 27th, 2011] [Originally Added On: September 27th, 2011]
- A Low Glycemic Diet [Last Updated On: September 27th, 2011] [Originally Added On: September 27th, 2011]
- Effectively Treat Asthma with Naturopathic Medicine - Dr. Shannon Sinsheimer, ND [Last Updated On: September 27th, 2011] [Originally Added On: September 27th, 2011]
- Banana Diet [Last Updated On: September 28th, 2011] [Originally Added On: September 28th, 2011]
- HCG Diet - How do you take HCG drops [Last Updated On: September 30th, 2011] [Originally Added On: September 30th, 2011]
- Dr Amanda's 'The Don't Go Hungry Diet' [Last Updated On: September 30th, 2011] [Originally Added On: September 30th, 2011]
- Menopause and Raw Foods Diet [Last Updated On: October 2nd, 2011] [Originally Added On: October 2nd, 2011]
- How to be healthy and lose weight Effectively [Last Updated On: October 4th, 2011] [Originally Added On: October 4th, 2011]
- 7 Day Cabbage Soup Diet Plan [Last Updated On: October 4th, 2011] [Originally Added On: October 4th, 2011]
- Dr Amanda explains 'The Don't Go Hungry Diet' [Last Updated On: October 4th, 2011] [Originally Added On: October 4th, 2011]
- Diabetic Diet - 5 Ways To Lower Your Blood Sugar Level [Last Updated On: October 4th, 2011] [Originally Added On: October 4th, 2011]
- The Power of Plant Foods in Anti-Aging and Lifestyle Medicine [Last Updated On: October 4th, 2011] [Originally Added On: October 4th, 2011]
- Eating Healthy Foods to Lose Weight Effectively [Last Updated On: October 4th, 2011] [Originally Added On: October 4th, 2011]
- Waist Training 2: diet, exercise, fashion [Last Updated On: October 4th, 2011] [Originally Added On: October 4th, 2011]
- Healthyliving Carb Confusion [Last Updated On: October 4th, 2011] [Originally Added On: October 4th, 2011]
- Fat Belly Diet [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- THREE KEYS TO FAT BURNING: Hormone Triggers [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- Race For Glory!: Post-Workout Meal and Diet Update! [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- Weight Loss Programs [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- How To Lose Weight Fast and Effectively [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- Diet Specialist - Issam Ghannam [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- The Diet Solution Program Ebook Guide Overview [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- Diet Specialist - Dr Issam Ghannam [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- Bulking - How to Add Muscle to Your Frame Effectively [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- Dr. Marc K. Weinberg, DC - Free Fat Burning Seminar [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- Workouts for Physical Conditions : How to Exercise on a Low-Carb Diet [Last Updated On: October 5th, 2011] [Originally Added On: October 5th, 2011]
- Best Way To Lose Weight Fast [Last Updated On: October 6th, 2011] [Originally Added On: October 6th, 2011]
- Who Else Wants to Lose Excess Weight Effectively [Last Updated On: October 6th, 2011] [Originally Added On: October 6th, 2011]
- How Protein Helps You Lose Weight [Last Updated On: October 7th, 2011] [Originally Added On: October 7th, 2011]
- Effectively Treat Anxiety Disorder with Naturopathic Medicine - Dr. Tamara Trebilcock, ND [Last Updated On: October 7th, 2011] [Originally Added On: October 7th, 2011]
- Fat Loss Diets - How To Lose Belly Fat Now - Video [Last Updated On: October 13th, 2011] [Originally Added On: October 13th, 2011]
- Healthy Eating or Junk Food - What is a Good Diet? - Video [Last Updated On: October 13th, 2011] [Originally Added On: October 13th, 2011]
- The Empowered Nutrition Meal Plan Story with Vince DelMonte and Patrick McGuire - Video [Last Updated On: October 13th, 2011] [Originally Added On: October 13th, 2011]
- Effectively Treat The Flu Influenza With Natural Medicine - Dr. Patti Kim, ND - Video [Last Updated On: October 14th, 2011] [Originally Added On: October 14th, 2011]
- Diverticulitis Diet: Here's What Works! - Video [Last Updated On: October 14th, 2011] [Originally Added On: October 14th, 2011]
- How To Lose Baby Weight - Video [Last Updated On: October 15th, 2011] [Originally Added On: October 15th, 2011]
- HCG Diet is the Proven System to Lose Weight Effectively - Video [Last Updated On: October 15th, 2011] [Originally Added On: October 15th, 2011]
- African Mango Diet-Buy African Mango-Pure African Mango - Video [Last Updated On: October 16th, 2011] [Originally Added On: October 16th, 2011]
- How to Treat Rosacea Naturally and Effectively? Boris Malayev - Video [Last Updated On: October 18th, 2011] [Originally Added On: October 18th, 2011]
- Smoothie Diet Time Now The Juice Fast Is Over? - Video [Last Updated On: October 19th, 2011] [Originally Added On: October 19th, 2011]
- Colon Cleansing and Liver Detox Diets Part 1 - Video [Last Updated On: October 19th, 2011] [Originally Added On: October 19th, 2011]
- How to Lose Weight Fast - The truth about Fat Burning Foods and Weight Loss Programs - Video [Last Updated On: October 19th, 2011] [Originally Added On: October 19th, 2011]
- Danger of diet partches - Video [Last Updated On: October 19th, 2011] [Originally Added On: October 19th, 2011]
- Weight Loss Exercises - Video [Last Updated On: October 20th, 2011] [Originally Added On: October 20th, 2011]
- The best diet to follow is NO diet at all " Easy .." - Video [Last Updated On: October 21st, 2011] [Originally Added On: October 21st, 2011]
- Best Kept [ Diet] Secret. Part 5. Its all up to you - Video [Last Updated On: October 21st, 2011] [Originally Added On: October 21st, 2011]
- Effectively Treat High Cholesterol with Natural Medicine - Dr. Angela Agrios, ND - Video [Last Updated On: October 23rd, 2011] [Originally Added On: October 23rd, 2011]
- How To Lower Your Cholesterol Naturally [Last Updated On: October 23rd, 2011] [Originally Added On: October 23rd, 2011]
- Effectively Treat Rheumatoid Arthritis with Natural Medicine by Dr. Angela Agrios, ND - Video [Last Updated On: October 25th, 2011] [Originally Added On: October 25th, 2011]
- Blood Type Diet Gets My Thumbs Up As It Balances Me - Video [Last Updated On: October 25th, 2011] [Originally Added On: October 25th, 2011]
- Foods for Health: Eating for Heart Health - Video [Last Updated On: October 26th, 2011] [Originally Added On: October 26th, 2011]
- 3/10/08: Safe and Effective Detox Part I - Video [Last Updated On: October 27th, 2011] [Originally Added On: October 27th, 2011]
- FASTEST WEIGHT LOSS DIET - Video [Last Updated On: October 27th, 2011] [Originally Added On: October 27th, 2011]
- Raw Sangha #57 - Black American Diet - A Raw Food Revolution Coming Soon! - Video [Last Updated On: October 27th, 2011] [Originally Added On: October 27th, 2011]
- Easy-as Ways To Lose Weight Fast - Video [Last Updated On: October 27th, 2011] [Originally Added On: October 27th, 2011]
- Diet tips101 - Video [Last Updated On: October 28th, 2011] [Originally Added On: October 28th, 2011]
- Foods To Gain Weight Pre- And Post-Workout - Video [Last Updated On: October 28th, 2011] [Originally Added On: October 28th, 2011]