What is Core & Satellite strategy?

The 21st century has so far been an era of colossal technological developments as it saw the introduction of smartphones, smartwatches, and smart cars that have embraced technology effectively and efficiently. At a time, when everything and everyone is switching to ‘smart’, how about a smart health insurance plan? How about switching to a health insurance plan that rewards you for living a healthier and fitter lifestyle? Would you not want a health insurance plan that is customised as per your specific needs and requirements?

A plan that monitors your daily activities and advises you on how to cope with any shortcomings? Yes, all this and a lot more is now possible as health insurance plans are now becoming ‘smarter’ and all thanks to various wellness programs and benefits introduced by insurers.

The concept of wellness benefit

In accordance with the guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI) under the preventive and wellness feature of health insurance plans, insurers have started offering incentives to customers who are eligible for reward points and fit well with the wellness criteria of the insurers.

The insurers are rewarding customers with a wide array of exclusive services that are a value-addition to the health insurance coverage offered at no additional cost. Such programmes are intended to improve and promote health and fitness amongst the people as they focus more on preventive healthcare rather than just curative care. The entire aim of wellness programs is to form a risk pool that protects the customers against catastrophic events like diseases and disabilities. Moreover, it will be a ‘double win’ situation for the insurers as fitter customers mean lesser claims.

Prevention is better than cure

There’s nothing new about the concept of prevention is better than cure. It is always important to focus on what matters to individuals to promote better health and well-being and stopping them from becoming ill. Promotion of healthy lifestyles and the prevention of ill health is a fundamental principle behind public health and improving the public’s health. Prevention is a fundamental principle of modern healthcare and inherent within health and social care strategies.

What are insurers offering?

The entire process of wearable devices is quite common and popular in the western world though it has recently started to pick up pace in India. With a massive increase in the number of smartphone users in the country, insurers have started to get enough free rein to incorporate various applications as a part of their wellness programmes. Most health plans monitor the physical activity of their customers through such applications that help insurers keep a track of the daily physical activities of the policyholders. Many insurers have even started to offer lucrative discounts—ranging between 80–100% on the renewal amount apart from a pool of other rewards and benefits. One such insurer is Aditya Birla Health Insurance that gives 100% premium to the customers if they achieve the required number of ‘Activ Dayz’ – one Activ Day means 10,000 steps a day, or any other specified physical activity.

Similarly, ICICI Lombard runs #DoTheDifficult wellness programme that entails a host of benefits. Under the programme, the customers can earn points by participating in marathons, walk-a-thons, or even by buying a gym, yoga or aerobics memberships or taking a health risk assessment.

Every point earned through the programme is equivalent to 0.25 INR and the customers can redeem the accumulated points for carrying out OPD consultations or nutrition consultations. Another prominent insurer, Future Generali has recently come up with a wellness plan under which the customers can avail a flat 80% discount on renewal provided no-claims are made through the policy in the previous year. The wellness plan operated by Bajaj Allianz General allows its customers to redeem the accumulated points for co-pay waiver at the time of claim or enhance the sum insured in case of no claim.

Max Bupa’s ReAssure health insurance plan also offers discounts to the customers for staying fit. Those walking a certain number of daily steps will be offered up to a 30% discount on renewal premium and the steps will be monitored by the Max Bupa Health Application. The product even comes with a ‘Booster Benefit’ that doubles the sum insured in just two claim-free years

(The writer is Head – Health Insurance, Policybazaar.com. Views expressed are personal)