Wellness is the new premium

Wellness is not only becoming an integral part of healthcare, but will be completely integrated within this, and other industries in future. In South Africa the race is on to own this space and through this - client centricity, writes Jaco Oosthuizen, Head: Multiply at Momentum.

Healthy is also a condition. A commonly sought after condition at that and because of this, the Wellness industry is a strategically strong integrator in business, a competitive edge in client centricity. No matter which sector a business operates in, the ability to holistically support peoples journeys of wellness is first prize and can mean the difference between operating today vs thriving tomorrow. 

In the business of Wellness, a holistic perspective is needed. Commercial competitiveness can be boosted by recognising value in the interconnected nature of wellness. For example, the link between financial wellness and physical wellness is indisputable. 

People with high levels of financial stress face double the risk of heart attacks[1]. According to an AOL Health Poll, productivity stealers such as muscle tension and back pain topped the physical symptoms of financial stress, accounting for 51% of those with high levels of financial stress. Migraines and headaches were experienced by 44% of this study’s respondents, insomnia by 39% and stomach ulcers by 27%. Debilitating conditions such as severe depression were experienced by 23% of those polled, compared with just 4% of people with low levels of financial stress. 

Added to that, it is widely agreed that financial stress is the biggest reason for divorce, which connects financial wellness to the social wellness sphere. 

On a pure number crunching basis, Momentum has proven the value of investment in Wellness as a strategic player in its business. Through the direct impact of its Reward and Loyalty Programme known as Multiply, the group unlocked a 30% increase in business growth (FY2014), adding R151m in value to clients. It also saw 19% less claims year-on-year and interestingly, the more physically active Multiply members claimed around 25% less than inactive members.

Further statistics from a Multiply perspective point to wellness benefits for individuals and insurers alike. In terms of insuring chronic conditions, the group has seen claims by Momentum Health members in the Chronic Controlled group reduced by 50%. On average, it is found that if chronic medical conditions are controlled and the person is physically active, that up to 60% - 80% less in claims are required. 

Looking forward, there is an exciting pipeline of new technologies that could drive integration of wellness across industries. Not as a product push, but as an offering of real value to people. Value derived in a way that helps people deal with physical and financial wellness challenges, and supports them in achieving their goals. 

Technology is enabling the tracking of wellness and personalisation of wellness, which in turn could enable the insurance sector to quantify risk on an individual basis. As an industry, we understand the impact of activity on claims experience and certain profiles of people, but investment in and application of data analytics will enable us to understand risk on a personal level. 

Data undoubtedly holds all the cards today. 

Consider the potential role of DNA testing, which is currently a voluntary option, in the role that Wellness could play in personalising premiums. The maturing product development of wear-ables, devices that measure movement, heart rate, sleep, glucose levels etc. is an incoming wave of technology to watch. Keep an eye out too for ingestible digital pills, technology for chronic patients, which could change the face of medicine. 

Wellness is the new premium. It is an ultimate enabler of client centricity and the race to own the space will intensify as everyone, globally attempts to ride this wave. As a standalone industry, it has the potential to provide businesses with a personalised approach in engaging with people, not just at annual policy renewal time but every day – and in a way that provides meaningful rewards for wellness.