In today's rapidly evolving insurance landscape, life insurers are taking bold steps to address a critical issue: the lack of relevance among younger demographics. This problem has led to a significant gap in coverage, with a large portion of Canadians either uninsured or underinsured. The traditional triggers for purchasing life insurance, such as marriage, parenthood, or homeownership, are happening later in life or not at all, leaving many young adults without adequate protection.
To bridge this gap, Canadian life insurers are introducing a range of innovative ancillary services aimed at making their products more appealing and useful to clients throughout their lifetimes. These services go beyond the typical end-of-life benefits and focus on supporting clients' health and well-being.
The Rise of Ancillary Services
One notable example is Manulife's Vitality platform, which offers a mix of reward opportunities and access to preventative health services. Policyholders can earn points for engaging in healthy behaviors, such as visiting the doctor or dentist, getting flu shots, or meeting daily step goals. These points can be redeemed for rewards like discounted trips or reduced costs on wearables like Apple Watches or Fitbits.
Manulife has further expanded its preventative health services, including partnerships with Cronometer (a nutrition app), NiaHealth (advanced biomarker testing), and Personalized Prescribing Inc. (pharmacogenetic testing). Additionally, it provides access to GRAIL's Galleri multi-cancer early detection test, offering policyholders comprehensive cancer screening and support.
Engaging Policyholders
The impact of these ancillary services is significant. Mr. Savage, head of individual insurance at Manulife, highlights that Vitality policyholders are highly engaged, using the platform 22 times a month on average. This level of engagement not only benefits the policyholders but also the insurers, as it delays the need for claim payouts and reduces mortality risks.
Health Promotion and Pricing
Pierre Ghorbanian, vice-president of advanced markets at BMO Insurance, emphasizes the dual benefit of these health-promotion services. Not only do they improve client health and well-being, but they also assist insurers in more accurately pricing their products. By delaying mortality, insurers can better manage their mortality pricing, ultimately leading to lower insurance costs for everyone.
Tailored Support for Specific Needs
Insurers are also offering tailored support for specific health conditions. Sun Life, for instance, has introduced a respiratory care program for plan members with asthma or other respiratory issues, providing expert consultations and ongoing guidance. Additionally, they offer a diabetes care program for clients with diabetes, which includes one-on-one coaching and personalized care plans, resulting in significant improvements in blood sugar levels and medication usage.
Beyond Health Support
The scope of these ancillary services extends beyond health support. Manulife's Vitality program includes KixCare, a pediatric virtual care platform, providing convenient access to healthcare for families. BMO Insurance has partnered with Empathy, offering bereavement support and grief resources to beneficiaries, as well as assistance with estate settlement and funeral planning.
A New Paradigm for Life Insurance
These innovative approaches to life insurance demonstrate a shift in focus from solely end-of-life benefits to a more holistic view of client well-being. By offering a range of ancillary services, insurers are not only addressing the relevance issue among younger demographics but also creating a more engaging and supportive experience for their clients.
As the insurance industry continues to evolve, it will be fascinating to see how these initiatives shape the future of life insurance and the overall financial well-being of Canadians.
