A New Generation of Digital Health CustomersALAIN PEDDLEPING AN HEALTH - DEPUTY GENERAL MANAGER ELECT

DISCOVERY - GENERAL MANAGER RESEARCH AND DEVELOPMENT LAB

Owner of the world’s longest-standing scientific health management program

6 million clients Globally

Largest group high-end health insurer in China#1

Share of the mid-end & high-end health insurance marketin China

60%

Largest direct billing hospital network in China

Largest health insurer in South Africa#1

Digital products are disrupting traditional business models

New trendsemerge

Innovative start-ups create disruptivebusiness models

Early adoptersstart embracingthe new models

Advanced incumbentsstart adapting to the new model

Mainstreamcustomersadopt

Tippingpoint

The new normal

Laggardincumbents die

Investment in health related technology, products and start-ups has grown exponentially

SOURCE: Rock Health

Investment doubled since 2013

20% CAGR Forecast to surpass $24

billion by 2020

Digital health start-up funding 2014 vs. 2011 - 13

USD billions

0.9

1.4

1.8

2011 2012 2013

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2011 - 2013 2014

2014$4.1B

$5B

$4B

$3B

$2B

$1B

$0B

Healthcare delivery is being disrupted across the value chain

Population management

Telemedicine

Risk selection

Health and Wellness

Digital tech and devices

Drug adherence

Social support mechanisms

Cloud-based EHR

Marketplaces for providers

23 and me

How relevant are these potential disruptors to health insurance?

Population management

Post-acute care coordination

Combine people, technology and process to reduce re-admission rates

Service Vendor to Payors Flexible model to cater to

wide variety of patient groups

Drug adherence

Medicine management service

Take the hassle out of medication adherence

Novel pharmacy model Improve drug adherence by

as much as 40%

Telemedicine

Telemedicine platform

Uber mode of healthcare seemlessly connecting patients and doctors

Triage health needs

The opportunities for digitally led healthcare innovation in China

20% CAGR Affluent mid-

market growth by

2020

Healthcare spend to reach ~1

trillion USD by 2020

Source: McKinsey macroeconomic model update. (Apri.2012)

Source; MOH; OECD; Euromonitor; China national and city statistical year book; Mckinsey analysis

110 billion USD

investment in digital

healthcare technology by

2020

By 2020 every citizen to have an

Electronic Health Record

Source: BCG modelling and analysis

Source: “National Plan for Health Service System”, China State Council 2015

+15% growth in active

mobile social users

(+ 77 million)

China's rate of diabetes

prevalence is the highest in

the world.

Source: CNNIC, Tencent, Sina, GSMA Intelligence

Source : Journal of the American Medical Association (JAMA) September 2013

2012 2020

20%CAGR

51%MassAffluent

20154.1

20104.1

2020> 6 trillion

Core Financial Business Non-traditional business

Ping An Group is already investing heavily in non-traditional financial service models

Online to offline ecosystem

Food

Entertainment

Housing Transport

Health

Simultaneous development of traditional and non-traditional financial services

Shared platform

Cross and up-selling

InvestmentInsurance Banking

Ping An Health roadmap of opportunities

Guide clients when they seek healthcare (cost, quality and a better customer experience)

Improve the experience of people seeking healthcare in China

Manage costs through disease prevention and disease management

Develop a healthcare systemthat is more contained andefficient

Exploit big data choices, social networks, referral networks, health records, fraud…

1. Client experience

4. Navigation

3. Develop a closed system2. Manage costs

5. Exploit the data

Ping An Health roadmap of opportunities

Guide clients when they seek healthcare (cost, quality and a better customer experience)

Improve the experience of people seeking healthcare in China

Manage costs through disease prevention and disease management

Develop a healthcare systemthat is more contained andefficient

Exploit big data choices, social networks, referral networks, health records, fraud…

1. Client experience

4. Navigation

3. Develop a closed system2. Manage costs

5. Exploit the data

Key unmet needs

1. Improve the experience of people seeking healthcare in ChinaWhat are the key unmet needs and concerns

Access to quality care

Access to information

Child and childbirth related care

Preventive care

Survey question: On a scale of 1 to 5, how satisfied are you with healthcare provision in the public health system? 1 = “not satisfied at all”, 5 = “very satisfied”

3.0

3.1

3.3

3.3

3.3

3.3

3.4

3.5

Accessibility

Price

Service attitude

Environment

Ethics

Hygienic condition

Treatment safety

Physician’s skill

For Chinese citizens, access is as much a concern as cost

Source: 2012 McKinsey patient survey on healthcare services, expenditures and service

Access is a major concern

#1service employees want:

specialist appointment booking

Source: PAH Health and benefits survey 2015

Client needs Time CostDistance

Ping An Good Doctor is the access point addressing the no 1 issue

health queries per day

>100 000 registered users

> 20 000 000

Significant investment in technology and people

Full-time familydoctors

1000

Contracted doctors

50 000

7 / 24 / 365

+ ConsultationsText |Video | face-to-face

+ Interpretation of reports+ Follow up phone calls+ 1000+ health checkup centers+ 2500+ Partner hospitals

Access to specialists

Specialists5 000 + From 3A hospitals across China

+ Online appointment set-up+ One click calling

Access to medication

+ Online consultation with pharmacists

+ Delivery within 2 hours in Shanghai

common drugs2 000

+ Expert advice from doctors and Health Stars

+ Interpretation of health check-up and other diagnostic reports

+ Personalized push of customized contents

Expert advice

Ping An Health roadmap of opportunities

Guide clients when they seek healthcare (cost, quality and a better customer experience)

Improve the experience of people seeking healthcare in China

Manage costs through disease prevention and disease management

Develop a healthcare systemthat is more contained andefficient

Exploit big data choices, social networks, referral networks, health records, fraud…

1. Client experience

4. Navigation

3. Develop a closed system2. Manage costs

5. Exploit the data

Disease prevention and disease management

Lifestyle choices can cause disease Chronic disease in China

4main risk factors

4main risk factors

60%Of all deaths

worldwide

LE

AD

TO

RESPONSIBLE FOR

1 Currently, 200 000 people die from smoking-related diseases every year

From 2000 to 2040 Estimated 200% increase in deaths from cardiovascular disease

Source; China Ministry of Health research foundation interview 2012Aging, Health, and Chronic Conditions in China and India: Results from the Multinational Study on Global AGEing and Adult Health (SAGE)1 Paul Kowal, Sharon Williams, Yong Jiang, Wu Fan, P. Arokiasamy, and Somnath Chatterji. National Academies Press (US); 2012.

In 2010 the number of people with diabetes is estimated to be more than 92 million, with another 148 million pre-diabetic

Physical activity improves mortality and health

Source: Internal Discovery Analysis Source: Vitality and DHMS member data

Mortality rate q(x) Impact of improvement in physical activity (Mortality rate)

Relative hospital cost per patient

1 2 3

-48%

-60%

Active

Inactive

Inactive

-55%-17%

Inactive Low Medium High

Vitality engagement

Source: Internal Discovery Analysis

Physical activity triggers a healthy lifestyle

Did not exerciseStarted exercising

Buy more HealthyFood

Undertake Preventative

measures

Undergo Screenings

Do more online assessments

Uplift in overall engagement

+16%23%

26%43%

Improvement in points after becoming physically active

79%

Source: Internal Discovery Analysis

Get Active Get RewardedAchieve your goals

Device integration allows tracking and rewards

Chronic disease management

+ Customized by expert doctors

+ Hundreds of health care plans

+ Daily reminders

+ Effective incentive mechanism

Ping An Health roadmap of opportunities

Guide clients when they seek healthcare (cost, quality and a better customer experience)

Improve the experience of people seeking healthcare in China

Manage costs through disease prevention and disease management

Develop a healthcare systemthat is more contained andefficient

Exploit big data choices, social networks, referral networks, health records, fraud…

1. Client experience

4. Navigation

3. Develop a closed system2. Manage costs

5. Exploit the data

3. Develop a more contained and efficient healthcare systemVertical integration through technology

Online to offline

2013 2015-16 2018 2018+2015

4. Guide clients to quality healthcare that’s also cost-effective

Electronic health records

Value

No

. of

pro

vid

ers

Potential impact of managed

referrals

Impact of guidance & infoDifferences in provider costs

5. Exploit data to reduce costs, improve quality and the customer experience

Electronic health records Dynamic underwriting

Age

RiskTraditional

Dynamic

The power of networks

Some thoughts and insights along this journey

The health insurance company of 2020

Selecting the best clients

Access to quality care

Managing choice of providers

Keeping people healthy

Fraud management

Aiding choice

Convenient and seamless

experience

Reducing out-of-pocket

costs

Enabling personal

health management C

OM

BIN

E T

EC

HN

OLO

GY

A

ND

DA

TA

Some thoughts and insights along this journey

1. Different skills, people and focus

2. Fail fast, learn quickly

3. Capture value everywhere

4. Your disruptive competitor is out there

5. New partnerships…

END