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Ms&c fi 15-2_mobile apps in health insurance

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International Benchmarking Study: How health insurers can gain a competitive advantage by embracing mobile as a driver for innovation

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Ms&c fi 15-2_mobile apps in health insurance

  1. 1. Shaping the Digital Future Winning with Mobile Health Apps How health insurers can gain a competitive advantage by embracing mobile as a driver for innovation May 2015 FLASH INSIGHT
  2. 2. 2 Copyright This document is intended for personal use only. Distribution is only permitted without any changes or omissions – publication, in whole or in parts, requires prior written consent by MÜCKE, STURM & COMPANY and correct citation of sources. All mentioned company names, logos, brands, brand symbols and other copyrighted material are the sole properties of the respective company; they are only used for illustrative purposes.
  3. 3. 3 Health insurers can use mobile apps to gain a competitive advantage. The definition of a digital strategy and transformation of the organization are key success factors. Source: Mücke, Sturm & Company Key Take-Aways 2 Mobile apps can lead to a competitive advantage In the private health insurance market only few insurers use innovative features to differentiate themselves on the market. Yet many innovative features can unlock promising benefits for health insurers. A comprehensive mobile app offer can lead to a competitive advantage through improved brand awareness, higher customer engagement, increased customer satisfaction and loyalty, and decreased costs for health and administration. 1 Health insurers are lacking innovative features The analysis of the top 10 private health insurers in selected countries shows that in every country health insurers offer mobile apps, yet oftentimes lack innovative features. Provider search, contact details, and claim submission are the most popular features. Innovative features like medical appointments or digital bonus programs have very low penetration rates. 3 Digitalization needs strategy and organizational changes Aetna is a best practice example for a an insurance company that has embraced digitalization. Its fast-failure approach to releasing mobile apps and the willingness to invest in and acquire digital knowledge not only point to an underlying digital strategy, but also demonstrate that it has built up the necessary internal business and IT capabilities.
  4. 4. 4 MS&C has analyzed the mobile app offerings of the top 10 private health insurers in 6 countries covering all geographical, innovational and economic aspects. Scope 1 The countries are selected on the basis of the criteria geographic location, innovational strength and national economic situation. Source: Mücke, Sturm & Company, company websites
  5. 5. 5 The average penetration of mobile apps among the top 10 private health insurers is 75% with the United States leading the benchmarked countries. Mobile App Penetration Australia United Kingdom Offer an app Do not offer an app SingaporeUnited States Germany India 100% 80%90% 70% 60% 50% Source: Mücke, Sturm & Company
  6. 6. 6 Number of mobile apps Penetration among insurers Ø Number of Features 60% 3 13% 5 13% 7 7% 7 4% 8 3% 14 60% of health insurers use mobile apps as just another channel, offering only a limited number of features. However, Aetna clearly stands out with many features. App/Feature Matrix N=45 Source: Mücke, Sturm & Company Numberofapps 7 Number of features 4 1 1 7 14 Beginner Developer Builder Researcher
  7. 7. 7 Basic and operational features are most commonly offered. However, innovative features are lacking in many health insurers’ feature portfolios. 67% 53% 38% 36% 29% 24% 24% 22% 22% 20% 18% 18% 18% 16% 13% 11% 9% 9% 9% Provider search Contact details Claim submission General health information Contract administration Healthcare manual Patient ID Overview coverage & expenditure Vitality tracking Fitness tracking Discounts Medication services Personal health information Conclusion of contract Premium calculation Personal medical record Emergency help abroad Bonus program Medical appointments 1 2 3 1 General health information on illnesses, treatments, symptoms and the human body. 2 Manual which helps to manage all issues that impact the personal health and well-being. 3 Individualized health information based for instance on blood pressure, fitness condition, or weight measurement. Most Common Features Basic features Operational business support Innovative features Source: Mücke, Sturm & Company
  8. 8. 8 90% 60% 10% 50% 10% 40% 60% 80% 30% 30% 0% 60% 50% 10% 10% 40% 0% 20% 30% 83% 33% 50% 83% 17% 50% 17% 0% 67% 50% 33% 0% 0% 17% 0% 17% 17% 33% 17% 22% 56% 56% 22% 11% 11% 0% 0% 0% 0% 33% 11% 22% 0% 11% 0% 33% 0% 0% 63% 38% 13% 25% 25% 0% 25% 25% 0% 13% 25% 13% 13% 13% 38% 0% 0% 0% 0% 80% 80% 0% 0% 80% 0% 40% 0% 40% 40% 20% 0% 0% 40% 20% 0% 0% 0% 0% App features differ highly between countries, with the U.S. and U.K. offering the highest number of features and Australia lacking many features. Benchmarking by Country GermanyUnited States AustraliaUnited Kingdom IndiaSingapore 71% 57% 100% 29% 57% 43% 0% 0% 14% 0% 0% 0% 0% 29% 0% 0% 0% 0% 0% 1117 815 913∑ Claim submission General health information Contract administration Healthcare manual Patient ID Overview coverage and expenditure Provider search Vitality tracking Fitness tracking Discounts Contact details Conclusion of contract Personal health information Medication services Premium calculation Personal medical record Emergency help abroad Digital bonus program Medical appointments Basic features Operational Business Support Innovative features Source: Mücke, Sturm & Company
  9. 9. 9 Aetna (USA) stands out as best practice examples for mobile health apps. BUPA offers the best mobile health app in 3 countries. Best Practice Examples by Country Feature score Based on number of features Innovation score Innovativeness of the features User Interface Graphic and design of the apps Total Score Max. 4 points per category Aetna 92% BUPA 75% BUPA 50% Cholamandalam MS 50% AXA 50% BUPA 50% Source: Mücke, Sturm & Company
  10. 10. 10 Aetna has achieved its leading position by offering a broad mobile app portfolio that consists of two main apps and several other apps for selected use cases. Overview Aetna Mobile Apps 1 PMR = personal medical record Stars stand for iTunes App Store rating Source: Mücke, Sturm & Company, Aetna Homepage Aetna Mobile 2010  PMR1  Patient ID  Contract admin.  Overview expenses & coverage  Provider search  Contact details iTriage 2009  Personal health information  Medical appointments  Healthcare manual  Provider search  General health care info Aetna Intl Provider 2012  Provider search  Contact details Resources for Living 2014  Healthcare manual  General health care information  Contact details Aetna International 2013  Claim submission  Contract admin.  Provider search  Contact details Aetna Get Active! 2014  Fitness tracking  Vitality tracking Aetna Plan Selection 2015  Premium calculation  Overview expenses & coverage
  11. 11. 11 Digital Organization & Roadmap "We were focused on the next generation of clinical program that deal with chronic and other diseases in our first year, and now we're on the second area around tech innovation.” July 2013 Mobile Applications (App Store Rating2) Aetna’s success with mobile health apps is based on both setting up several digital initiatives and reflecting digitalization in its organizational structure. Overview Aetna 1 PBM = Pharmacy Benefits Management 2 Based on Apple App Store, April 2015 Source: Mücke, Sturm & Company, Aetna Homepage Aetna Inc. Founded: 1853 in Hartford, Connecticut, USA Employees: 48.000 Countries: Worldwide in more than 100 nations Operating income: $ 4 billion Revenue: $ 58 billion Customers: 24 million medical, 15 million dental, 15 million PBM1 Digital Initiatives  Funding of different initiatives in order to leverage technology and mobile innovations  Since 2009, Aetna launched a variety of mobile applications and acquired different mobile platforms like the popular mobile health app iTriage  Fast-failing approach: In 2014 Aetna shut down some of its mobile projects (e.g. fitness tracking aggregation app CarePass) in order to move on to more promising innovative projects Resources for Living Aetna International Aetna International Provider iTriage Aetna Mobile Aetna Get Active! Aetna Plan Selection 2014 2013 2012 2009 2010 2014 2015 4.5 3.5 3.5 3.5 2.5 1.5 Michael Palmer Chief Innovation Officer
  12. 12. 12 Overall, mobile health apps can generate a variety of benefits for health insurers, which can lead to a competitive advantage. Benefits of Mobile Health Apps Customer Engagement The establishment of a direct customer relationship leads to  Improved communication through personalization and a direct communication channel  Valuable customer insights through analysis of customer activities (e.g. through bonus programs, digital fitness tracking, frequency of app usage) Benefits for Health Insurances Customer Satisfaction  Mobile health apps are increasingly expected by customers, therefore health insurers need to follow customer usage  Innovative and customer friendly apps improve branding and brand awareness which in return influence membership growth positively  Mobile apps open up new target groups (young people with high affinity to smartphones) Branding  Customer satisfaction is increased: - Information easily accessible - Processes less complex - Transparency increased  Customer loyalty is intensified: - Digital fitness tracking programs - Lock-in-effect as more personal data is stored within the app (e.g. disease management for chronically ill people) Cost Reduction Costs can be reduced in two ways  Reduction of health costs as members‘ awareness for a healthy lifestyle is increased e.g. through - Digital fitness tracking programs - Information on healthy living - Disease management programs  Reduction of administrative costs through the reduction of paper (e.g. mobile claim submission) and call center staff (e.g. self service tools) 00110 10100 10010 € Source: Mücke, Sturm & Company
  13. 13. 13 Contact details Munich headquarter Theresienhoehe 12 80339 Munich T +49 89 461399 0 F +49 89 461399 777 Darmstadt Mina-Rees-Strasse 5a 64295 Darmstadt T +49 6151 800 400 0 F +49 6151 800 400 777 Cologne Kaiser-Wilhelm-Ring 26 50672 Cologne T +49 221 995878 0 F +49 221 995878 777Darmstadt Cologne Munich www.twitter.muecke-sturm.de www.slideshare.muecke-sturm.de www.muecke-sturm.de www.xing.muecke-sturm.de Germany Michael Mücke Managing Partner

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