WPA Precision Corporate Healthcare
WPA’s new group PMI plan targets SMEs with 50 or more employees and uses new technology to offer greater transparency and flexibility. There are three main strands to the proposition:
Precision Corporate Healthcare. This element allows the employer to design its own health insurance scheme, knowing how much each element will cost it. A bespoke digital interface allows firms to add, delete or modify individual benefits to create the package and price that suits them. The effect of changing any benefit can be seen immediately rather than requiring a fresh quotation.
Precision Analytics. This second element applies once the plan starts and WPA says: ‘has been designed to remove the mystery behind health insurance premiums and provide transparency and clarity’. The employer can see, using anonymised results, what its employees are claiming for and what is driving premium costs and increases. This enables them to model and change benefits as needs be.
Precision Claim. The third element is simply a mobile app where employees can get online claim authorisation in just a few minutes using an intelligent, intuitive and simple app.
Precision Corporate Healthcare is built around a bespoke but intuitive technology platform to enable employers to understand their PMI pricing. This gives them the MI (management information) to better understand what drives costs, and also enables them to model the cover they want and then implement that. Once the plan starts, they can then monitor results over time, model any changes they’re considering (and perhaps look at some they hadn’t) and again implement any changes they want. The final claims app element will appeal more to employees, enabling them – should they so wish – to obtain pre-authorisation using their mobile.
Comment: Insurers traditionally just give customers an explanation of their cover and a price for it, but getting beneath that, to understand how that price is made up and therefore how the overall package might be improved for that particular company is not usually offered (except on large cost plus type group schemes). WPA has turned that thinking on its head by using its in-house bespoke technology platform to enable SME customers (and brokers) to model cover and to adjust it in future.
Simply put, this enables employers to better understand their PMI spend, to spot trends early and adjust benefits to meet both business and employee needs and to ensure the cover remains affordable and therefore the scheme sustainable.
If WPA was the market leader it could probably not afford to offer this, as it would be giving away too much information to its competitors. But WPA is both large and small enough and has always been a bit quirky and, being a mutual, it does not have to chase market share or profit. Indeed, it has long argued it does neither.
The ability to model and price cover is not unique (Health Shield has long offered it on its health cash plans for example) but it is a refreshingly transparent process. Given that some PMI insurers are accused of under-pricing initially to gain a new account, so WPA could find itself as a more expensive option – at least initially. Once a customer buys into the system too, switching to another insurer who does not offer this could be too big a step too (much of the MI may be lost by switching) and some brokers may feel uncomfortable about that. Others who rely on commission or fees from switch business could see their earnings fall too or may argue that the plan would involve them in more work initially or down the line.
Claiming on a PMI policy can be a slightly nervous experience (a bit like taking your car for an MoT) so, having the option to claim online may appeal to some people too – perhaps younger people especially.
Seeing the technology in practice, it’s impressive and almost addictive . Developing systems in-house can be a risk, but WPA has done this for years and that seems to work too.
All in all, many clients will love the freedom and information they get – it’s treating them as grownups. Some, and some brokers, will however see it as all a bit unnecessary. WPA won’t lose any sleep about them – they know they’re a Marmite brand and long may that continue!
Plus points: Open and transparent pricing; Customers can model their cover both before buying and then periodically; A claims app could be particularly appealing – especially to younger employees; Helps make PMI a more practical and sustainable employee benefit; Very valuable MI.
Not so plus points: Cover could be more expensive initially; Locks clients into WPA; Some brokers could lose income if clients do not switch; Some initial extra work for brokers.
Website: http://www.wpa.co.uk.
Rating (max 10): Innovation: 9. Overall: 9. Platinum
Tags: PMI; WPA