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Transcript of Ms&c fi 15-2_mobile apps in health insurance
Shaping the Digital Future
Winning with Mobile Health Apps How health insurers can gain a competitive advantage by
embracing mobile as a driver for innovation
May 2015
FLASH INSIGHT
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.
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.
Source: Mücke, Sturm & Company
Key Take-Aways
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.
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.
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.
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.
Source: Mücke, Sturm & Company, company websites
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
Australia United Kingdom
Offer an app Do not offer an app
Singapore United States Germany
India
100% 80% 90%
70% 60% 50%
Source: Mücke, Sturm & Company
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Number of
mobile apps
Penetration
among insurers
Ø Number of
Features
60% 3
13% 5
13% 7
7% 7
4% 8
3% 14
60% 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
N=45
Source: Mücke, Sturm & Company
Nu
mb
er
of
ap
ps
7
Number of features
4
1 1 7 14
Beginner
Developer
Builder
Researcher
7
Basic and operational features are most commonly offered. However, innovative features are lacking in many health insurers’ feature portfolios.
67%
53%
38%
36%
29%
24%
24%
22%
22%
20%
18%
18%
18%
16%
13%
11%
9%
9%
9%
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
1
2
3
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.
Most Common Features
Basic features
Operational business support
Innovative features
Source: Mücke, Sturm & Company
8
90%
60%
10%
50%
10%
40%
60%
80%
30%
30%
0%
60%
50%
10%
10%
40%
0%
20%
30%
83%
33%
50%
83%
17%
50%
17%
0%
67%
50%
33%
0%
0%
17%
0%
17%
17%
33%
17%
22%
56%
56%
22%
11%
11%
0%
0%
0%
0%
33%
11%
22%
0%
11%
0%
33%
0%
0%
63%
38%
13%
25%
25%
0%
25%
25%
0%
13%
25%
13%
13%
13%
38%
0%
0%
0%
0%
80%
80%
0%
0%
80%
0%
40%
0%
40%
40%
20%
0%
0%
40%
20%
0%
0%
0%
0%
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
Germany United States Australia United Kingdom India Singapore
71%
57%
100%
29%
57%
43%
0%
0%
14%
0%
0%
0%
0%
29%
0%
0%
0%
0%
0%
11 17 8 15 9 13 ∑
Claim submission
General health information
Contract administration
Healthcare manual
Patient ID
Overview coverage and expenditure
Provider search
Vitality tracking
Fitness tracking
Discounts
Contact details
Conclusion of contract
Personal health information
Medication services
Premium calculation
Personal medical record
Emergency help abroad
Digital bonus program
Medical appointments
Basic features Operational Business Support Innovative features
Source: Mücke, Sturm & Company
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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 50%
Cholamandalam MS 50%
AXA 50%
BUPA 50%
Source: Mücke, Sturm & Company
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
1 PMR = personal medical record
Stars stand for iTunes App Store rating
Source: Mücke, Sturm & Company, Aetna Homepage
Aetna Mobile
2010
PMR1
Patient ID
Contract admin.
Overview
expenses &
coverage
Provider search
Contact details
iTriage
2009
Personal health
information
Medical
appointments
Healthcare
manual
Provider search
General health
care info
Aetna Intl
Provider 2012
Provider search
Contact details
Resources for
Living 2014
Healthcare
manual
General health
care information
Contact details
Aetna
International 2013
Claim
submission
Contract admin.
Provider search
Contact details
Aetna Get
Active! 2014
Fitness tracking
Vitality tracking
Aetna Plan
Selection 2015
Premium
calculation
Overview expenses
& coverage
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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 2013
Mobile Applications (App Store Rating2)
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
1 PBM = Pharmacy Benefits Management 2 Based on Apple App Store, April 2015
Source: Mücke, Sturm & Company, Aetna Homepage
Aetna Inc.
Founded: 1853 in Hartford, Connecticut, USA
Employees: 48.000
Countries: Worldwide in more than 100 nations
Operating income: $ 4 billion
Revenue: $ 58 billion
Customers: 24 million medical,
15 million dental,
15 million PBM1
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
Resources for Living
Aetna International
Aetna International Provider
iTriage
Aetna Mobile
Aetna Get Active!
Aetna Plan Selection
2014
2013
2012
2009
2010
2014
2015
4.5
3.5
3.5
3.5
2.5
1.5 Michael Palmer Chief Innovation Officer
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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
Customer Engagement
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)
Benefits
for Health
Insurances Customer Satisfaction
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)
Branding
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)
Cost Reduction
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)
00110
10100
10010
€
Source: Mücke, Sturm & Company
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Contact details
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Theresienhoehe 12
80339 Munich
T +49 89 461399 0
F +49 89 461399 777
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50672 Cologne
T +49 221 995878 0
F +49 221 995878 777 Darmstadt
Cologne
Munich
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Germany
Michael Mücke Managing Partner