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The race to improve lives and life insurance has started
Generali Vitality is a life insurance program that rewards people for living healthy lives. Building on the success Discovery Vitality had in Africa, Generali is pioneering the Shared Value Insurance model in Europe. Marco Giovannini, CFO of Generali Vitality GmbH, talks about how it works and what it takes to change the industry.
1) What was the response to the launch of Generali Vitality? What is the ratio between users and non-users and how do you see it changing the future of insurance?
Up to now, Generali Vitality has been very successful in Germany. We are more than satisfied with the results and market experience. The market launch has met very positive reactions from our customers so far.
Since the launch in July 2016, about 7,000 contracts with the Vitality option have been concluded. The ratio (Vitality/Tot. policies) is around 50 percent.
In France, where Generali Vitality has recently been launched, however, it is still too early to present specific figures. Still, we are confident that the program will be just as successful in France as it has been in Germany. The number of customers is growing and more and more people are asking us about the new program. Generali Vitality is changing the way to proceed in the insurance business; it is the kind of interaction customers want to have today. Instead of only protecting risks, we go beyond this by actively protecting and enhancing people’s lives today.
2) Which behavioral change of customers do you find the most important to address? Why and how do you address them?
Generally, people are not well informed about wellness approaches. Most of the benefits from a healthy lifestyle are undervalued. But once people are provided with incentives, they are willing to adopt a healthier lifestyle. Generali Vitality is a wellness program that rewards people for living healthier. By changing his behavior, health costs go down and members live longer; this has also been clinically proven.
Moreover, awareness about health and the widespread use of smart devices is rising among people across the world. The market of health-conscious people is growing every year. People feel the urge to live healthier lives, and with Generali Vitality, we have developed a program that helps them to achieve this. As a wellness program, it has the potential to appeal to younger and healthier members. Nevertheless, the program is not only for the young and healthy; it is intended for everyone who wants to live a healthier life, regardless of age, physical condition and health status.
3) In Generali Vitality you believe that nowadays insurance is not just about insuring lives, but improving lives, so you are in a sense engaging in the change of the mindset and the culture of insurance? What does it take to be on the forefront? Do you see any challenges?
We are convinced that we are changing the rules of the game of the insurance industry with Generali Vitality. The program allows us to position ourselves as our customers’ partner. We at Generali have become increasingly aware of the opportunities that derive from technology, which is why we want to deliver simpler and smarter products to our clients to match their expectations of today. Our ambition is to become faster than the others. With Generali Vitality, we want to go beyond our role as a simple insurer and we want to support our customer all along the way.
There are many challenges – with new players such as aggregators and online providers, the market has become ever so competitive. As an insurance company, it is absolutely necessary to be strong on innovation technology. Unlike in the past, an insurer can now leverage great amounts of data. This allows an insurer to design insurance solutions that are more inline with a client’s personal needs. Smarter insurance solutions are all about better risk calculation and higher efficiency.
4) In the context of Shared Value Insurance, where would you draw the line between a disruption and an opportunity?
We believe that by disrupting, we create new opportunities. We at Generali are very aware of the opportunities that derive from technology, which is why we want to deliver simpler and smarter products to our clients. Offering a shared value insurance model like Generali Vitality has a positive impact for us as an insurer as well as for our customers in the long term. Such a product sets off a positive feedback loop that motivates people to live healthier, creating value for the insurer and above all for society.
5) As many other industries nowadays, insurance is transforming due to digitization and technologies - what do you personally see as the biggest insurance trends coming up in 2017?
The insurance industry is currently facing a digital revolution era: smart home insurance, telematics products as well as health programs like Generali Vitality are changing the way an insurer interacts with customers. Generali is already successful in the area of telematics, whereby a driver’s habits are monitored and prices can be set more accordingly. But also new areas such as domotics, which captures the benefit of connectivity in the home, are becoming increasingly available.
Want to know more? Marco Giovannini will be speaking on this topic at the 5th Annual Life Insurance Forum.
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