Health & Wellness Engagement Impacts

According to SWISS RE’s latest report, a US insurer who runs a successful Health and Wellness engagement program on a fully underwritten term life product may see an aggregate mortality and lapse experience reduction of up to 3–4%across their entire book of business, with more than half of the overall benefit coming from true policyholder behavior change. 

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While engaging 40% of policyholders on an ongoing basis, insurers can decrease aggregate mortality and lapse experiences by up to 3.8%, compared to 2.2% reduction rate when engaging 25% of customers. Beyond examining and quantifying how Health and Wellness program engagement rates can lead to subsequent improved mortality and persistency, the paper discusses how H&W engagements can provide value for not only customers, but distributors, re/insurers, and society as a whole.

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“By engaging with policyholders through health and wellness programs, insurers help change behaviors and improve health, which results in improved longevity and maximized lifetime customer value,” said Heather Majewski, Head of L&H Solutions Americas, Swiss Re. “This creates shared value for all parties as society benefits from healthy and productive people, and insurance companies benefit from improved mortality. This improvement offsets the costs and financial incentives of a health engagement program and yields positive ROI for insurers.”

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 Full report is available here