FLASH INSIGHT. Winning with Mobile Health Apps How health insurers can gain a competitive advantage by embracing mobile as a driver for innovation

Transcription

1 May 2015 Shaping the Digital Future FLASH INSIGHT Winning with Mobile Health Apps How health insurers can gain a competitive advantage by embracing mobile as a driver for innovation

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. 2

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. Key Take-Aways 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. 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. 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. 3

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., company websites 4

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 United States Germany Singapore Australia United Kingdom India Offer an app Do not offer an app 5

6 Number of apps 6 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 7 Developer Researcher Number of mobile apps Penetration among insurers Ø Number of Features % 5 4 Beginner Builder 13% 7 7% 7 4% % 14 Number of features N=45 6

7 Basic and operational features are most commonly offered. However, innovative features are lacking in many health insurers feature portfolios. Most Common Features 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 % 24% 24% 22% 22% 2 18% 18% 18% 16% 13% 11% 9% 9% 9% 38% 36% 53% 67% Basic features Operational business support Innovative features 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. 7

8 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 United States United Kingdom Singapore Germany India Australia Provider search Contact details Claim submission General health information Contract administration Healthcare manual Patient ID Overview coverage and expenditure Vitality tracking Fitness tracking Discounts Medication services Personal health information Conclusion of contract Premium calculation Personal medical record Emergency help abroad Digital bonus program Medical appointments 9 83% 63% 22% 8 71% 6 33% 38% 56% 8 57% % 56% % 25% 22% 29% 1 17% 25% 11% 8 57% % 43% 6 17% 25% % % 5 13% % 33% 25% 33% % 13% 11% 22% % 17% 17% 33% 17% 13% 38% 11% 33% % Basic features Operational Business Support Innovative features 8

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 5 Cholamandalam MS 5 AXA 5 BUPA 5 9

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 Aetna Mobile 2010 Aetna Intl Provider 2012 Aetna International 2013 Aetna Plan Selection 2015 PMR 1 Patient ID Contract admin. Overview expenses & coverage Provider search Contact details Provider search Contact details Claim submission Contract admin. Provider search Contact details Premium calculation Overview expenses & coverage itriage 2009 Resources for Living 2014 Aetna Get Active! 2014 Personal health information Medical appointments Healthcare manual Provider search General health care info Healthcare manual General health care information Contact details Fitness tracking Vitality tracking 1 PMR = personal medical record Stars stand for itunes App Store rating, Aetna Homepage 10

11 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 Aetna Inc. Founded: Employees: Countries: Operating income: $ 4 billion Revenue: Customers: 1853 in Hartford, Connecticut, USA Worldwide in more than 100 nations $ 58 billion 24 million medical, 15 million dental, 15 million PBM 1 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 Mobile Applications (App Store Rating 2 ) Resources for Living Aetna International Aetna International Provider itriage Aetna Mobile Aetna Get Active! Aetna Plan Selection 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 Michael Palmer 2015 Chief Innovation Officer 1 PBM = Pharmacy Benefits Management 2 Based on Apple App Store, April 2015, Aetna Homepage 11

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 Branding Customer Engagement 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) Cost Reduction Benefits for Health Insurances 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) Customer Satisfaction 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) 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) 12

13 Contact details Michael Mücke Managing Partner Cologne Munich headquarter Theresienhoehe Munich Darmstadt Mina-Rees-Strasse 5a Darmstadt Cologne Kaiser-Wilhelm-Ring Cologne Darmstadt T F T F T F Germany Munich