Karen Woodley, head of healthcare distribution, The Exeter, discusses how increasing engagement in value-added services is critical for increasing protection momentum.
Recent YouGov findings, have shown the economy (51%) and health (46%) as being the most important issues facing the country, according to UK citizens. With the economy slipping into recession and the NHS facing continued challenges, it's no surprise that people are concerned.
This uncertain outlook naturally impacts the insurance landscape. In particular, there was a marked shift towards private healthcare options last year, with nearly two-thirds (64%) of UK workers using some form of private health service, according to The Exeter's Health and Financial Fears Report.
However, even as UK workers consider insurance to strengthen their health safety nets, less than half (48%) are aware of policy benefits that can be accessed without the policyholder having to make a claim. What's more, only a quarter of those with an insurance policy (26%) actively use ‘value-added services'.
Yet, when policyholders are aware of such benefits, it appears that those with health insurance are leading the way on usage. Amidst the prevailing financial and healthcare unease, this sparks a key question for advisers: How can the industry keep this momentum going and encourage even more policyholders to engage with services?
Regular touchpoints
Unlike insurance plans such as life cover and income protection, health insurance policies are typically renewed annually. This annual reassessment, whether done independently or with an adviser, provides a regular opportunity for policyholders to review the specifics of their plan and consider their wider options. This includes any added benefits included in their plans.
Individuals who hold private health insurance are more aware of the benefits of accessing private services than those without and, it follows, that these policyholders will likely be more open to using added-value services – if they are aware they exist.
Insurers' annual statements and advisers' annual reviews act as important touchpoints to highlight available services. They also serve as opportunities to understand why some offerings haven't been tapped into, encouraging discussion aimed at increasing service usage.
Going into these discussions, it's important that insurers clearly communicate to advisers and policyholders the scope of the benefits available within their product, to inform the advice conversation and ensure policyholders get maximum value from their policies. Achieving this requires insurers to provide advisers with relatable insights like usage statistics and case studies, that demonstrate the practical effects of these services.
Adapting to health needs
A significant benefit of value-added services is how they provide a healthcare approach to suit the needs of consumers who increasingly value wellness and preventive care as essential to their overall health journey.
We are seeing an increase in the uptake of these services over time, as health insurance policyholders capitalise on them to maintain a healthy lifestyle.
In 2023, The Exeter's own member benefits app, HealthWise, saw a 131% increase in usage, highlighting the rising demand for health solutions that offer easily accessible care. Over half of this usage (63%) was for remote GP appointments, reflecting the pressures on public health services and a growing preference for immediate care.
However, services such as physiotherapy (accounting for 15% of total usage); mental health support (14%); and nutrition, lifestyle, and dietitian support (7%), also saw a rise in use over the past year. This proves that the more holistic options offered by value-added services are equally valuable to policyholders. The benefits also give policyholders the option of accessing early support to assess any symptoms of illness, potentially avoiding a need to claim under their main policy.
To keep this momentum going, the industry needs to emphasise the success and utility of these services, educating policyholders through targeted communications that detail the benefits and their ease of access.
By reinforcing the value of these services in contributing to a healthy lifestyle and offering convenient solutions to primary care challenges, insurers can inspire more policyholders to embrace and benefit from value-added services.
Catering to changing demographics
The continued engagement from health insurance policyholders with value added services is partly driven by younger consumers entering the market. Our Health and Financial Fears Report discovered that those aged 18-24 were more aware of the added value services available to them than any other age group.
Whilst increased awareness amongst younger consumers bodes well for increasing future service usage, it's up to insurers and advisers to ensure that the benefits available engage every policyholder, leveraging digital means catering to both today's and tomorrow's consumers. Complimenting regular communications with easy-to-understand digital tools and educational sessions that build digital confidence can boost engagement rates among all demographics, not just those considered digitally-savvy.
Our HealthWise usage data also highlights gender trends in service selection, with nutrition (70%) and dietitian (58%) services mainly chosen by women, with men preferring physiotherapy (60%). This again reflects a broadening scope of healthcare needs across society, with specific needs that must be met for different demographics.
Elevating services
Our commitment as a sector to digital innovation, including value-added services, is one of the cornerstones we need if we want to ensure that private medical insurance remains a valuable option for consumers looking to manage their health.
For industry professionals, embracing value-added opportunities and trends like digital innovation and holistic health initiatives can ensure policyholders fully benefit from their policies through a clear understanding and engagement with value-added benefits.
