Jill Davies takes a look at the integral part information technology is playing in helping to advance the health cash plan market for providers, intermediaries and customers…
Quicker broadband, wireless internet and the advent of the BlackBerry mean that people no longer have to go to the office – the office can go with them. Communicating with colleagues, customers and suppliers is simple and, regardless of where we are in the world, we can check
and respond to emails or even host a conference call.
Technology is assisting in the rise of the paperless office as well as helping to transform the life of consumers who no longer need to purchase train tickets, holidays or their weekly shopping in person. Everything can be done online. Machines are helping us get what we need – quicker than ever.
Individuals no longer need to wait for the morning paper to find out what is happening in the world because news websites mean we can be updated at the touch of a button.
The communication sphere is evolving into a much more engaging forum. The reader or viewer now plays an active role with 24-hour news channels, and can even generate and supply their own footage and images from video cameras and phones, not to mention podcasts and blogs.
“Information technology and business are becoming inextricably interwoven,” Bill Gates once said. “I don’t think anybody can talk meaningfully about one without talking about the other.”
The man who said those words ought to know, being that he is the chairman of Microsoft. But we do not have to be global IT experts to know that technology now underpins many of our fundamental business strategies and processes.
In this fast-paced society, it is inevitable that technology is having an impact on the health cash plan (HCP) market, and on customer relations, enabling HCP providers to innovate and seek new ways of improving the experience for policyholders.
Making life easier
Providers are continually exploring creative ways of simplifying and streamlining the application or claims process, and the development of online facilities has been key in helping them to achieve this. HCP providers are actively encouraging policyholders to use their website facilities and sign up to access account updates by text and email so that they can monitor and manage their cash plan effectively.
Not only is this quicker than traditional mail correspondence, it is also a more environmentally friendly service through savings on paper as well as postage costs.
Other developments that have helped to speed up the process between providers and customers include direct debit and direct credit facilities, which replace posting and receiving payments by cheque.
As bandwidth increases, there will be a shift in the way people work online and in the type of content on offer. Utilising these developments will provide a much more fulfilling experience for the end-user.
And as providers look to enhance their services for customers by developing more efficient and user-friendly systems, many of these processes are becoming the standard practice across the industry.
The ability to manage accounts online gives added value to the customer and, by offering options like a text messaging service, policyholders can check their balance within minutes on their mobile.
The number of online facilities offered by providers is increasing and the way information is presented is changing, with more emphasis on audio and visual in the form of video clips and podcasts.
As well as individual policyholders, intermediaries and their customers are also benefiting from advances in technology. For example, Westfield Mosaic is an online flexible quotation system, which enables employers with 30 or more employees to choose from a broad range of everyday healthcare benefits.
This plan, along with other similar products, is introducing HCPs to a whole new market. Technology has opened the door to new opportunities for intermediaries to talk to companies that offer private medical insurance (PMI) but where substantial numbers of employees are still not covered by such a scheme. In these cases, bespoke cash plans can be a cost-effective health insurance option for the entire workforce.
Taking advantage
Offering a cash plan to complement PMI can generate commission payments and extra earnings from intermediaries’ existing customers.
Companies may want to specifically tackle musculoskeletal problems and would therefore choose to provide physiotherapy and chiropractic benefits. Other benefits invaluable to all employers include counselling facilities such as helplines or face-to-face sessions, and GP telephone services, which employers can access at a convenient time for them.
Meanwhile, the flexibility of constructing a plan electronically for a customers and generating an instantaneous quote means that the product can be tailored to their needs and budget, saving on time and unnecessary additional extras. All of this can lead to an improved customer experience, enabling corporate and individual policyholders to get the most out of their plans.
Technology has done wonders to revolutionise the business world. Now, all the information a potential HCP customer needs is at their fingertips.
15 years ago, finding out about a company and its products and services would have involved at the very least a phone call, followed by the time taken to receive leaflets and information by post.
Now, that information is available to download or receive as an e-newsletter, or on providers’ websites.
Intermediaries will also look to provide websites for information that is relevant to them. As well as offering downloadable literature and forms, information can also appear in more interactive formats, which can neatly deliver key messages on a particular subject or product.
Websites are truly a business’ ‘window to the world’ and a means of attracting a new global audience.
E-media is also having an impact on advertising and marketing in all sectors, including the HCP market. Viral marketing is an effective way of increasing brand awareness using methods such as video clips, interactive games and even text messaging. This was most recently demonstrated by the Cadbury’s advert featuring two children with ‘dancing eyebrows’, which quickly became an internet sensation and a real talking point.
One blogger paid tribute to the effectiveness of Cadbury’s viral advertising with the following posting on an online marketing discussion board:
“(Cadbury’s) original gorilla advert was credited with raising sales … and generating a positive reaction to Cadbury’s … the ads are memorable, they get people talking about Cadbury’s and, the upshot is, people end up buying more chocolate.”
Online trends
The current online phenomena are, of course, blogs and social networking sites, which can be viewed by some businesses as a quick and easy means of communication for staff, or as social ‘NOT-working’ sites by those who have banned them in the workplace.
But technology can only achieve so much. An all-singing, all-dancing website is one thing, but if an organisation is not driven by an efficient and dedicated workforce, it will be very difficult to retain customers.
When writing any article about technology that includes a quote from Bill Gates, it seems only fair, in the spirit of competition and business, to end with one from Michael Dell, founder and chief executive officer of Dell.
It is clear that while all industries, not just the health cash plan market, should embrace technology, new devolopments should always be used to complement and enhance an organisation’s strengths, rather than magnify its deficiencies.
Or, as Mr Dell says: “Our business is about technology, yes. But it’s also about operations and customer relationships.”
Jill Davies is chief executive of Westfield Health
