"Individuals are looking for their health insurer to do more than just pay out when they’re unwell. They also want support to stay well."
Consumer needs have changed. Neglecting our health throughout life and then trying to get issues fixed after they’ve occurred is clearly not a recipe for success.
This change in mindset is reflected in our claims data and research, both of which reveal an ongoing shift towards prevention at all ages. This brings huge opportunity to our industry - an opportunity that will only be realised through changing the conversation with employers.
The government’s Keep Britain Working review is undoubtedly helping to raise awareness of the importance of prevention; to people, business, society and the economy. But that shift has arguably been well underway for some years.
Now, with data and evidence to hand, the time is ripe for our industry to help shape the future of workforce wellbeing, by evolving employer thinking about benefits - from reactive insurance to proactive assurance, and about wellbeing programmes in general - from nice to haves, to essential for business performance.
This applies across the whole spectrum of health and protection products, and it necessitates a different type of conversation with employer clients, one that places health improvement front and centre and at the same time helps employers align such activity with business outcomes.
It’s fair to say that intermediaries were, on occasion, wary of talking about everyday care and support services with their employer clients in the past. The thinking was that it’s best not to go there, because if employees know about them and use them 'too much', there’s a risk the insurer will just pull the service from the proposition.
Hopefully, an ever-growing bank of data and evidence from health and protection insurers across the industry is helping to allay those fears. It must - otherwise our industry will fail to meet the needs of people and business.
Changing customer needs
Our data and evidence confirm that individuals are looking for their health insurer to do more than just pay out when they’re unwell. They also want support to stay well.
For example, our latest annual Health Claims and Insights report once again reveals an increase in claims for proactive Everyday Care. Often accessed digitally via a smartphone, this includes virtual GP, physiotherapy, Talking Therapies, optical, dental and hearing treatment. At the same time, claims for routine or serious treatment remain on a gradual downward trajectory.
Everyday Care claims now make up more than two-thirds (70%) of all VitalityHealth claims. This has increased significantly, from less than 40% of claims as recently as 2019.
This shift is further reinforced by new consumer research from Vitality, which finds that nearly 9 in 10 of health insurance customers (87%) want their health insurer to help them improve their health, outside of making a claim.
And they’re walking that talk. Almost 8 in 10 (76%) said they’d used their cover in the past 12 months.
So, what used to be a benefit (in terms of health cover in general) that sat in a drawer in case of a rainy day, is now much more.
On top of the peace of mind aspect, getting help to live in better health for longer is what people want. It’s also what business needs, with its clear correlation to productivity. And it’s what the UK government is now working towards.
Expanding customer base
Plus, health insurance has become relevant for new segments of consumers. Younger people are more likely to make use of a GP, screening and diagnostics.
Indeed, in our consumer research, more 18-34 year olds (48%) than those in older age groups said ‘fast access to GP appointments’ represented one of the primary reasons for taking out private health insurance.
And, interestingly, our latest claims data shows that claims rates for Talking Therapies were highest overall in the 30-39 age group (40%), followed by the under 30s (25%).
Correlation: prevention & serious claims
Our claims data also found a positive correlation regarding the impact such interventions have on the development of more serious conditions.
For example, from 2019 - 2024, claims rates for Talking Therapies increased by 167%, and claims rates for out-patient and in-patient/day-patient mental health claims decreased by 17% and 41% respectively.
Over the same time period, claims rates for everyday care outpatient musculoskeletal physio claims increased by 30%, and other musculoskeletal claims reduced by 8%.
Correlation: prevention & business outcomes
So, back to the need for a new kind of conversation with employers. There’s a lot to draw on here: from consumer demand for support with prevention at all ages, to the potential for healthcare cost reduction through a decrease in more serious claims.
And, last but certainly not least, helping employers consider the impact of prevention, not only on cost reductions, but also on wider business outcomes, such as presenteeism and performance.
Our research has previously revealed that unhealthy employees are, on average, significantly less productive. For example, we found that inactive employees lose 28% more productive time than those who regularly exercise.
Employees at risk of depression lose, on average, 151% more productive days than those not at risk. It’s worth adding that those aged 35 and under are significantly more at risk of depression than those older than 35, according to our data.
In short, there’s enough intel now available to support robust conversations with employers, helping them take their benefits and wellbeing programmes to another level. This is a shift that we all need to make to deliver the best possible outcomes for our clients within a fast-changing environment.
