MLC to give customers discounts on insurance by sharing health and fitness data

Health insurance company will tap into wearable data insights in order to understand a customer's level of wellness

MLC, the wealth management division of National Australia Bank, is giving health insurance customers the opportunity to lower the cost of their premiums in return for data on their exercise, sleep and lifestyle patterns.

The company has implemented the Covalence health analytics platform, built by US-based, disruptive big data tech provider, Big Cloud Analytics, into its new MLC On Track Program, which it claims is Australia’s first wearable device wellness initiative.

Using MLC On Track, MLC will be able to capture, organise and score information on participating customers’ health and wellness through Internet of Things (IoT) data generated by Intel Basis Peak fitness and sleep trackers, along with other data sources. Specific data sets being analysed include step count, hours of activity, sleep duration and average resting heart rate.

Data will then be presented to end consumers via personalised dashboards and include actionable trends and wellness scores, triggered messaging, content and programs.

Arguably, what is most significant about the initiative is how data will then be used to determine the product price points MLC will offer participating customers.

In return for sharing their personal data, and for meeting pre-determined wellness targets during a 90 to 160-day period, customers will receive a 5 percent discount on premiums. Additionally, customers are given two opportunities to capture the discount, for a total of 10 per cent off premiums for the life of their policy.

“It’s a potential game changer for the industry,” claimed MLC executive general manager Insurance, David Hackett. “For too long, companies have relied on old ways to do business. We want to create more value for an insurance customer beyond just the policy itself.”

MLC’s chief underwriter, Fiona Guscott, said identifying new ways to assess and price insurance risk will help cut costs for everyone involved.

“More importantly, as we reward healthy decisions, we can all work to achieve the greater goal of prioritising wellness,” she said.

Big Cloud Analytics CEO, J. Patrick Bewley, described the program as a unique alignment of the two companies’ interests.

“Customers can monitor their health habits in real-time to see how their activity and sleep levels can affect their health scores while reducing their premium costs,” he said. “Additionally, insurance providers become more engaged with their customers. Accessing massive amounts of longitudinal data and scores can significantly change how actuarial information has been derived for the past century. We are extremely pleased to play a key role in bringing this capability to life with MLC.”

BCA positions its proprietary health analytics platform as providing a deeper understanding of the health and wellness of the population as well as an early warning signal to consumers around their wellness and biometric changes.

Advanced analytics is becoming big business for insurance companies as they strive to better understand their client and customers and better manage risk. According to a recent study conducted by IBM across insurance companies, 74 per cent are using information including big data and analytics to create a competitive advantage.

In an interview with CMO last year, the global CEO analytics for global insurance giant, AON, Steven Mildenhall, revealed the company has spent $350 million in recent years building analytics capabilities which could not only improve existing insurance policies and risk management, but trigger profound shifts in how insurance companies innovate.

“In the past, from an insurance point of view, we had to rely on not observing the thing you actually wanted to observe – is someone careful, prudent, do they have good foresight and so on. You just observed if they did or didn’t by whether they claimed,” Mildenhall told CMO at the time.

“With all the data now available, you can directly observe many more of these behavioural characteristics that will be good drivers to understand risk.”

The motor insurance industry has already garnered plenty of headlines for its use of telemetry-based, in-car technology to record driving information of an individual customer’s behaviour in order to build a more personalised, accurate profile that better identified their level of risk.

But there are potential risks in terms of consumer privacy backlash. CapGemini head of data and insight, Frank Wondoloski, said over the past number of years, the industry has seen consumers choose convenience or price reductions over privacy time and time again.

"We have worked with other insurance companies who are at various stages of development of similar products and believe big data will accelerate these trends," he told CMO.

"Wearables are a whole new breed of technology which will, even beyond the insurance industry, drive data growth and provide new opportunities - but also force us all to think about privacy in new ways."

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Blog Posts

Why if marketing is all you do, you’ll never be very good at it

OK, so you’re probably thinking: “Here comes another article to badger me about living in my bubble.” And also, “I bet this bubble-bashing piece will go on to explain how I can achieve better results through some heady dose of new life experiences, new routines and annoyingly different opinions on social media.”

Dane Smith and Toby Harrison

Ogilvy Australia

A leader’s role in rebuilding a culture of confidence

Every day, there are new predictions and studies on the future of work, the state of the economy and the unfolding global pandemic. All of which creates uncertainty and heightens the imperative of effective leadership.

Michelle Gibbings

Workplace expert, author

Confused About Your Customers?​

​I've worked in brand and marketing for more than 20 years. But there’s one area where I’ve found myself going around in circles and I must admit I'm becoming increasingly confused.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in