Gamification ups the ante
It seems like ages since this writer attended a fintech or Insurtech launch, with local brands such as ctrl, Naked Insure and Pineapple now considered well-established. So, it was refreshing to crack an invite to the unveiling of a new arrival to South Africa’s competitive employee benefits (EB) space. YuLife, which was launched in the United Kingdom (UK) in 2019, arrived on our shores just months after its first quarter 2023 expansion into the United States (US). With 1 000-plus policies sold; more than USD50 billion on cover; and over 650 000 wellness members the brand clearly means business. Add to this the ‘gamification in EB’ mystery and you have something worth exploring.
Tackling the global wellbeing crisis
The launch presentation led with the catchphrase “there is a global wellbeing crisis” before offering some eye-opening statistics in support of its claim. For example, in March 2022 the World Health Organisation (WHO) reported a 25% increase in stress and anxiety on the back of pandemic; in the same month, the House of Commons Obesity Statistics revealed that 64% of the UK population was obese or overweight; and a recent Lancet commission put the cost of mental health to the global economy at USD16 trillion by 2030. From an employer perspective, the crisis was illustrated using stats like 55% of sick days result from poor mental health; 65% of employees are looking for new jobs; and that businesses are losing ZAR44 000 per-employee-per-year due to mental illness.
There are few in the South African financial advice community who do not appreciate the importance of wellbeing on investment and insurance outcomes. Case in point: local consumers and their financial advisers have been exposed to the Discovery Vitality and Momentum Multiply models for decades. And it is widely understood that healthy lifestyles fuelled by diet, exercise and good mental health can improve life expectancy and, on a net basis, result in fewer trips to the doctor through life. You might say life insurers love wellbeing because improvements in mortality and morbidity are good for sustainable underwriting. No surprise then, that YuLife reminded launch attendees that around 80% of chronic disease is attributed to lifestyle. Regrettably, the latest statistics suggest that both physical and mental wellbeing regressed during and immediately following the 2020 COVID-19 pandemic.
How to improve wellness outcomes
YuLife believes they have an antidote for the 38% reduction in steps; 39% increase in mental health issues; and eight-in-10 employees not engaging with their employer’s health and wellbeing programmes measured recently. PS, the firm shared sources for these stats, but the writer did not find them granular enough to include here. At the risk of promoting a brand, it is worth sharing some of the key differentiators between the YuLife wellness solution and that of other global programmes. They argue that most existing programmes are expensive and exclusive to higher earners with limited benefits flowing to the majority of employees. In contrast, their solution spreads its benefits across all members. But we digress…
It can be fun to unpack new insurance offerings. In this case, the customer value proposition is supported by three pillars, namely engagement; prevention; and protection. From a financial advice perspective, you will want to know more about the protection component, which gives employees access to a range of group risk products underwritten by Guardrisk with reinsurer support from RGA and Munich Re. Insurance solutions include life cover, income protection, lump sum disability and funeral cover – with critical illness coming soon.
End consumers, or in this case employees, will be more impressed by the tech-backed engagement and prevention components of the offering. YuLife describes itself as a tech-driven financial services provider (FSP) that is redefining insurance with wellbeing, engagement and reward … delivered via an easy-to-use digital application that offers unique experiences for individuals and employers.
Smart group risk plus wellness for ROI ‘win’
Is it fair to conclude that the solution is more of a member- and tech-backed wellness play than an employee benefits innovator? For starters, the foundational protection products are not particularly different from those currently on offer domestically. There is, however, little doubt that the combination of employee engagement, wellness and range of group risk products is good for the employer’s bottom line.
The employee benefits solution provider offered its own statistics in conjunction with a Forrester TEI report to claim that its clients benefit from a 181% ROI improvement compared to traditional insurance solutions thanks to a 11.5% reduction in absenteeism; 2.75% decrease in employee turnover; and 2.5% increase in productivity. Overall, employer clients benefit from a happier and healthier workforce as evidenced by a 3x increase in physical wellbeing; 5x increase in mental wellbeing; and 5x increase in the usage of early intervention tools like EAP and telemedicine. How are these improvements achieved?
“We harness the latest trends in behavioural science and game mechanics to encourage employees to make proactive lifestyle changes while prioritising prevention by de-risking individuals through healthy activities,” said YuLife, in a media release following the launch event. “Gamification ensures that we achieve unrivalled levels of engagement which is valued and enjoyed by all employees”. Employees earn YuCoin, YuLife’s virtual wellbeing currency, through interaction with various wellness behaviours. So, once again, the digital and technology innovation occurs adjacent to the insurance product offering!
Reasons to enter the SA insurance market
Jaco Oosthuizen, YuLife Co-founder and Managing Director of YuLife South Africa shared some of the brand’s motivation for launching in South Africa. “The country has the second highest life insurance penetration globally, making it a perfect market for us to expand into and showcase our innovative approach to insurance,” he said. “There has been a big shift toward health and wellbeing in the workplace, with more and more companies adding new initiatives and resources to their employee benefits packages. We are launching here to offer companies an easy way to provide extra protection [and are] looking forward to providing local businesses and employees with tangible value on an everyday basis, [and] in an accessible, engaging, and deliverable manner”.
Writer’s thoughts:
In a white paper on gamification, EY describes “the use of game techniques and elements to influence the behaviours of individuals” with the main benefit to insurers being “in the realm of customer engagement”. Based on your experience, do you believe gamification could disrupt existing insurer wellness programmes? Please comment below, interact with us on Twitter at @fanews_online or email us your thoughts [email protected].
