Slide 1: VitalityHealth Business Update 2019
VitalityHealth Business Update 2019.
Slide 2: Context for the PMI market in the UK
Context for the PMI market in the UK Large, but static market Share by market segment (insured lives) Funder concentration 6.9 Individual c20% insured lives million SME c25% £4.8bn annual premiums Corporate c55%
Slide 3: Compared to Discovery Health, PMI providers play a very different role in the healthcare system
Compared to Discovery Health, PMI providers play a very different role in the healthcare system Comparison of public and private systems 120% 100% £122bn % of population covered 80% No cover for A&E 60% No cover for chronic health conditions 40% Limited cover for primary care 20% £3.6bn Private heal
Slide 4: Compared to the South African model, PMI providers operate more like general insurers
Compared to the South African model, PMI providers operate more like general insurers from an underwriting and pricing perspective Sophisticated benefit Community rated Scale a prerequisite management Manage price and loss Critical mass sufficient Risk rated ratio at policy level (4 players = 90%) O
Slide 5: Vitality in the UK
Vitality in the UK Vitality POSITIVELY DIFFERENT
Slide 6: Vitality UK shares a consistent core purpose with that of Discovery
While the operation of the markets is very different, Vitality UK shares a consistent core purpose with that of Discovery Why How What Make people healthier and Shared Value Model enhance and protect their lives
Slide 7: We have internalised the trends and Shared Value model into a bold ambition
We have internalised the trends and Shared Value model into a bold ambition for the business which guides our approach To be the best and most trusted Health InsureTech company in the UK, generating a million additional years of life for our members by 2023 through our shared value insurance model.
Slide 8: How we deliver on our ambition
How we deliver on our ambition To be the best and most trusted Health InsureTech company in the UK, generating a million additional years of life for our Brand members by 2023 through our shared value insurance model. We will achieve this by transcending the boundaries of traditional insurance, brin
Slide 9: Strategic insight into the delivery of our ambition
Strategic insight into the delivery of our ambition BRAND PRODUCT ENGAGEMENT EXPERIENCE Brand ambition: Product ambition: Engagement ambition: Customer experience ambition: Develop an insurance Advance the health and Through incentives and brand that cuts-through in a wellbeing of our members behavi
Slide 10: Strategic insight into the delivery of our ambition
Strategic insight into the delivery of our ambition BRAND PRODUCT ENGAGEMENT EXPERIENCE Brand ambition: Product ambition: Engagement ambition: Customer experience ambition: Develop an insurance Advance the health and Through incentives and brand that cuts-through in a wellbeing of our members behavi
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Slide 12: Stanley provides a unique vehicle through which to market our message of healthy living
Stanley provides a unique vehicle through which to market our message of healthy living, as well as our product benefits
Slide 13: An always-on approach to brand investment
An “always-on” approach to brand investment Prompted brand awareness of 50%
Slide 14: Strategic insight into the delivery of our ambition
Strategic insight into the delivery of our ambition BRAND PRODUCT ENGAGEMENT EXPERIENCE Brand ambition: Product ambition: Engagement ambition: Customer experience ambition: Develop an insurance Advance the health and Through incentives and brand that cuts-through in a wellbeing of our members behavi
Slide 15: The application of the Shared Value model in the UK
The application of the Shared Value model in the UK LIFE HEALTH HEALTH INVESTMENTS INVESTMENTS INSURANCE INSURANCE INSURANCE PRODUCT INTEGRATION PARTNERS PROGRAMS ACTIVE REWARDS HEALTHY AGING HEALTHY MIND BRAND
Slide 16: The model is underpinned by a mature version of the Vitality programme
The model is underpinned by a mature version of the Vitality programme 3 1 INCLUDED: STATUS Up to 25% off REWARDS GET UNDERSTAND REWARDED YOUR HEALTH Up to 40% off: 50% off: ACTIVE REWARDS 2 GET HEALTHY RECOGNISED: INCLUDED: 50% off: Up to 40% off: 75% off:
Slide 17: Traditional PMI models are fundamentally based on the balance between premiums and claims
Traditional PMI models are fundamentally based on the balance between premiums and claims Traditional PMI Model BENEFIT DESIGN PRICING AND AND CLAIMS UNDERWRITING MANAGEMENT
Slide 18: The Vitality model changes the profile of the risk pool, and unlocks significant value
The Vitality model changes the profile of the risk pool, and unlocks significant value BENEFIT DESIGN PRICING AND AND CLAIMS UNDERWRITING MANAGEMENT
Slide 19: The Vitality model changes the profile of the risk pool, and unlocks significant value
The Vitality model changes the profile of the risk pool, and unlocks significant value BENEFIT DESIGN PRICING AND AND CLAIMS UNDERWRITING MANAGEMENT
Slide 20: Value is channelled into better pricing and richer benefits
Value is channelled into better pricing and richer benefits… BENEFIT DESIGN PRICING AND AND CLAIMS UNDERWRITING MANAGEMENT
Slide 21: ... and significant savings for members
… and significant savings for members £76m of additional value October 2017 – September 2018 BENEFIT DESIGN PRICING AND AND CLAIMS UNDERWRITING MANAGEMENT
Slide 22: Strategic insight into the delivery of our ambition
Strategic insight into the delivery of our ambition BRAND PRODUCT ENGAGEMENT EXPERIENCE Brand ambition: Product ambition: Engagement ambition: Customer experience ambition: Develop an insurance Advance the health and Through incentives and brand that cuts-through in a wellbeing of our members behavi
Slide 23: Vitality Coaches and Champions
900+ Wellness Days and Workshops 6 Vitality Coaches | 6 Performance Champs 150 Vitality Champions
Slide 24: Applying the incentive mindset to drive the prevention agenda in mental health
We are applying the incentive mindset to drive the prevention agenda in the mental health space Treatment Inpatient SEVERITY SEVERITY Outpatient Early intervention Prevention FREQUENCY FREQUENCY
Slide 25: Strategic insight into the delivery of our ambition
Strategic insight into the delivery of our ambition BRAND PRODUCT ENGAGEMENT EXPERIENCE Brand ambition: Product ambition: Engagement ambition: Customer experience ambition: Develop an insurance Advance the health and Through incentives and brand that cuts-through in a wellbeing of our members behavi
Slide 26: The success of Vitality depends on seamless integration with partners
The success of Vitality depends on seamless integration with partners – no effort or barriers to engagement Starbucks Apple Ocado Cineworld / Vue
Slide 27: We have redefined the healthcare journey in the UK – Traditional journey
More fundamentally, we have redefined the healthcare journey in the UK – TRADITIONAL JOURNEY The member is in the middle Member is always caught between insurer and provider, and needs to have multiple interactions Member contacts insurer to with their insurer throughout authorise further diagnostic
Slide 28: We have redefined the healthcare journey in the UK – Vitality journey
More fundamentally, we have redefined the healthcare journey in the UK – VITALITY JOURNEY Hand-offs are reduced Member care is consultant led, rather than insurer led, ensuring both efficiency and appropriateness of clinical pathways The VitalityGP directs the member to consultant care, with the Aut
Slide 29: Customer satisfaction is at an all-time high
Customer satisfaction is at an all-time high 70% of all Trustpilot scores in the past year are 5 Star 94% claims satisfaction | Member Survey 87% feel that Vitality has a positive impact on their health 66.7 – Group Secretary NPS (Q4 2018)
Slide 30: Strategic insight into the delivery of our ambition
Strategic insight into the delivery of our ambition BRAND PRODUCT ENGAGEMENT EXPERIENCE Brand ambition: Product ambition: Engagement ambition: Customer experience ambition: Develop an insurance Advance the health and Through incentives and brand that cuts-through in a wellbeing of our members behavi
Slide 31: VitalityHealth Business Update 2019
VitalityHealth Business Update 2019.