Why life insurers offer digital health engagement platforms? – Manuel Heuer, COO at dacadoo

Why life insurers offer digital health engagement platforms? – Manuel Heuer, COO at dacadoo


Hi, I am Manuel Heuer, the Chief Operating Officer at dacadoo and I am based here in Zurich, Switzerland. Life Insurers, they like to work with us for a marketing reason. It is for either client acquisition or also retention because on the one side by offering a platform like ours they are able to jump on the megatrend of health and wellness where you have ample content that you can share and distribute and get in contact with the member base. Instead of talking about death risk or risk protection or family protection which are all very serious and heavy topics. You can bring a positive spin to your marketing story. That alone attracts also people, clients or potential clients, who are already health aware, who do already track something or are aware of their health and wellbeing and take care. If they are faced with an offering like this, they will be attracted to look at it. From an insurance perspective you thereby actually, what they call, attract good risks. So, you have a positive selection bias. This is certainly one of the reasons why they work with us. Another reason is, what they call, the reduction of labs. Because the proposition in life insurance today is completely without emotions, it is quite rational, often clients don’t even know with which life insurance they concluded a contract with. Because there is no emotional connect and no relationship between the client and the life insurer. By having a platform where you can interact more, you create this emotional bond, you create this connect and thereby also increase loyalty. And by increasing loyalty, this is very valuable for life insurance, that’s this labs. So, the longer they remain in the contract and they don’t break it, the more valuable they also are for life insurers. By having and building up a relationship with your client you then also move into something which is called upselling and cross selling. Because then at different life events or stages in your life you can now offer different offerings to them. Which could be valuable to them and which would make the relation more attractive for both sides. Of course, and finally is the fact that we maintain and improve health and wellness. So of course, if you have a life insurance which is about risk protection you want to make sure that the client remains healthy and in a good shape over the client contract. That’s a natural given. If you are in a savings product, you think about keeping them healthy and in a good quality life over time and thereby, by building a relationship, have a connect to be able to serve them along their life with different products. But health outcome is very important for life insurers as well, because if they do improve the health of their member base, they can go back to reinsurer and ask for a better price on the substandard lifes they need to protect.

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