Embracing Health and Wellbeing benefits: A win for protection customers and advisers

Gemma Perry, Senior Propositions Manager at Aviva, discusses how health and wellbeing benefits can transform the perception and value of protection products.  

The traditional view of protection insurance as merely a financial safety net in times of crisis is outdated. Modern protection policies offer valuable health and wellness benefits and have done for some time, yet they remain largely underutilised by customers and overlooked by advisers.   

The problem

Many customers are unaware of the health and wellbeing benefits they are entitled to. Research from Pacific Re indicates that over half (51%) of existing UK protection customers didn't know, or said no, when asked if their policy offered VAS (value added services) [1]. In contrast, Aviva customer research tells us that 87% say they can see themselves using some / all of these (health and wellbeing) services.

To reshape the protection narrative and fully integrate health and wellness as a core component, the industry must adopt a multi-faceted approach. Protection advisers are uniquely positioned to highlight that today’s protection products support not just financial stability but also physical and mental wellbeing. However, a recent report by CI Expert reveals that 29% of advisers  never, rarely or occasionally communicate these benefits to their clients [2]. Why is this?

The opportunity

Acknowledging the time constraints and the complexity advisers face in understanding the wide range of health and wellness propositions, it is essential to be clear on the value these benefits bring to customers, advisers, and the industry.

1. Increased appeal and conversion – Health and wellness benefits are diverse and therefore cater to various needs. By targeting key features that resonate with clients, advisers can enhance the appeal of protection products. For instance, gym discounts may appeal to fitness enthusiasts, speedy access to a private GP may appeal to parents, and quick access to mental health consultations could support families with adolescent children.
2. Building advocacy and retention – Customers who regularly use health and wellness services are often more engaged and often likely to retain their protection policies. At Aviva we have seen year on year growth in registrations to access these benefits and customers using the digital GP services report high satisfaction.
3. Extending customer reach – Aviva’s research shows that having access to these benefits makes customers more likely to recommend their provider to a friend or family member. The ability to share some of these benefits with eligible family members further encourages trial and adoption from a wider audience.
4. Demonstrating customer value - Meeting the requirements of Consumer Duty by showcasing the tangible value of health and wellbeing benefits should form part of the sales process. For example, Aviva’s DigiCare+ health and wellbeing app offers benefits worth over £900 annually, if fully utilised. This emphasises significant savings compared to private services and underscores the need for advisers to inform clients about these benefits. The Aviva DigiCare+ app and services are non-contractual benefits Aviva can change or withdraw at any time. Terms and residency restrictions apply.

The role of the Insurer

To fully leverage the potential of health and wellbeing benefits, there are opportunities for the insurance industry to collaborate and take collective responsibility.

Firstly, insurers must ensure that advisers receive thorough training on the full range of health and wellness benefits. These training sessions should be clear and easily digestible. Over the past year, Aviva has conducted seven health and wellbeing webinars, reaching over 6,000 advisers, equipping them with the knowledge and confidence to effectively communicate these benefits to clients.

Secondly, insurers must invest in post-sale customer communications. Regular, targeted reminders through various channels, such as personalised emails and annual statements, ensure that customers remain informed and engaged with their benefits year after year.

Social good

In 2023, the ABI reported that nearly 22 million people in the UK had access to health services through insurance in 2021 [3]. These benefits, which focus on prevention and early intervention, are designed to address minor health concerns and to help prevent them from becoming more serious. If fully utilised by all eligible individuals, these services could play a significant role in reducing the need for NHS intervention, thereby easing the burden on public health resources and promoting sustainability and social good. That’s something our industry ‘could’ feel very proud of.

Conclusion

Fully integrating health and wellbeing benefits into the protection narrative could be transformative for our industry. By making sure customers know and understand what they are entitled to, we could positively shift industry perception, build advocacy and retention, and contribute to a more sustainable public health landscape. This proactive approach would not only strengthen the adviser-client relationship but also underscore the true value of protection insurance in today’s challenging world.

Sources:

1.       Pacific-Re Life Beneath the Surface, Navigating the ocean of Value-Added Services, By Richard Purcell, 2022 Report

2.       CI Expert Critical Thinking Report 2024: Inspiring Innovation in Critical Illness Cover

3.       ABI Closing the Evidence Gap: How Insurance Supports Good Health and Productivity June 2023