The launch of AIA Vitality provides Australian advisers with a unique opportunity to build a sustainable, intergenerational advice business, according to one advice practitioner.
AIA Australia has officially launched its new customer engagement program, AIA Vitality. The membership program encourages people to take steps to improve their health and wellbeing by rewarding them with tangible, immediate benefits, including entertainment discounts and cheaper insurance premiums. AIA Australia developed the Australian version of the program in partnership with South African insurer, Discovery, and piloted the offer with a small number of advisers late last year (see: AIA Pilots Client Engagement Program).
Risk specialist adviser, Gerard Lowe, who has been part of the pilot, said the program was more than just a ‘value-add’ for consumers. According to Mr Lowe, AIA’s Vitality has the potential to deliver significant benefits in terms of retention and referrals to advisers’ businesses.
“I would encourage other advisers to look at this as a way to change their business models. You’re effectively moving from a business which relies on new sales, to a sustainable, long-term business which can support itself by serving existing clients.
“And for the first time we can truly deliver advice to intergenerational clients. The children of parents with Vitality will grow up with an understanding of the benefits of having insurance, which is a proposition we really haven’t been able to deliver until now.”
…we can go out with an offer that really changes the conversation with consumers
Speaking to riskinfo at the launch of AIA Vitality, Mr Lowe said in the three months since the pilot program began he has already had new clients come to him specifically to purchase Vitality.
“Everyone in the office has had the opportunity to become a member of the program. As a result, two of the younger ladies in our practice have introduced their friends to the program, and they’ve become clients of ours, not because they were looking for insurance, but because they wanted to join Vitality.
“There’s something quite satisfying about being part of an initiative which aims to get everyone a little bit healthier. But from a business point of view it’s fantastic as well, because we can go out with an offer that really changes the conversation with consumers. Now we’re talking about trigger points: what interests the client, what types of incentives resonate with them, what drives them, and how we can help them lead healthier lives,” he added.
Vitality is the world’s largest science-backed health and wellness program, with over 5 million participants globally, including members in the USA, UK and China. The program uses the latest research in behavioural economics, incentivisation and wellness to stimulate people to take the first steps towards healthy living, and to make these lifestyle changes permanent.
To officially launch Vitality, AIA Australia hosted a national forum in Sydney, focused on the issue of driving improved health and wellbeing through incentives. The insurer also released a new report, entitled: ‘The Case for Incentivising Health: Using behavioural economics to improve health and wellness’. The report offers innovative solutions on using incentives to address the critical health state of Australians, 12 million of who are overweight or obese (60% of the population), including one in four children, according to the latest Australian Institute of Health and Welfare statistics.
AIA Australia’s Damien Mu told riskinfo Vitality addressed a number of different issues in the Australian insurance marketplace:
“Our intention with Vitality is bold; we want to deal with the problems of customer value, affordability, persistency and sustainability through reduced claims.”
Mr Mu said this started with a genuine customer value proposition that engages people in the life insurance conversation.
We want to do something different, and make a difference
“Affordability is another big issue. Vitality addresses this by helping us (the insurer) improve persistency and reduce the number of claims, so we can pass on those benefits to clients in the form of a discount of up to 30% on their premiums. We’re also giving our clients access to other benefits, on things like healthy food and entertainment, which helps with their overall budget.
“Overlaying that, we think the life insurance industry has an important part to play in the solution to Australia’s obesity epidemic. We want to do something different, and make a difference.”
AIA Vitality will be sold initially through financial advisers to people who purchase an eligible protection policy with AIA Australia. A 7.5% upfront discount on insurance premiums will be offered to members who sign up for a lump sum policy, with the potential for ongoing premium discounts and cashbacks as the member progresses through the program.
For more on AIA Vitality, click here.
