Award Applications

BaoWan BetterCare : The first dynamic pricing insurance for type 2 diabetics

1. The project
It all started with a simple question: why can’t sick people buy health insurance while they are the ones who need it the most?

Chronic diseases have been growing over the years due to lifestyle and environmental changes. The future doesn’t look any brighter. According to the World Health Organization, projections show that by 2020, almost 75% of all deaths will be related to chronic diseases. This will create a real problem by increasing financial burden on societies. However, we do not have to go down that road because chronic diseases can be controlled. One of the most controllable chronic diseases is type 2 diabetes. Around the world, 415 million people have diabetes, 90% of them being type 2. By 2040, this number is expected to reach 642 million people. Such a growth is mainly due to bad eating and lifestyle habits. However, when properly managed, type 2 diabetics can live a longer and healthier life. Therefore, there is a real need to have efficient programs to help those people get in control of their disease.

Based on those insights we, Muang Thai Life Assurance Public Limited Company (MTL) in partnership with Swiss Re, developed BaoWan BetterCare, the first ever dynamic pricing insurance for type 2 diabetics in Asia!

We made BaoWan BetterCare unique by building it for and with diabetic customers. We interviewed and discussed with different profiles of patients to understand the main customers’ pain points and build three key personas. Building on this deep customer understanding, we have identified that current offerings in Asia lack critical components to offer real support to diabetics. The majority only offer severe stage coverage. While we also have this covered, we created an even more relevant product by adding early stage coverage and even OPD/IPD that can be used for any diseases, even non-related to diabetes. However, we believe that a good control program is not only about cost support but also about becoming a true partner for these patients. To make sure that customers are motivated and incentivised, we have set-up a reward system by adjusting premium dynamically based on each customer’s real health status. We have also created a relevant partners ecosystem to help improve customers’ health.

First, we are committed to ensure our customers success. This is why we set-up a relevant incentive system. In managing chronic diseases, engagement is a crucial factor that defines health status. For an optimal control, diabetics need to visit their doctor every 3-6 months to follow-up on the changes to their HbA1C. HbA1C is one on the most important indicator in gauging health status for those patients. It is scientifically proven that every 1% drop in HbA1C can significantly reduce the risk of diabetes complications. We tied this important marker into our dynamic pricing which allows us to offer up to 49% discount on premium. To align with customer behaviour of doctor visit, the price is adjusted every 6 months. Convenience being a key consideration for MTL, when their due date is almost reached, customers can go to our website (https://mtlbettercare.com), upload a picture of their new HbA1C report and get their new premium in real-time.

Second, BaoWan BetterCare is more than just an insurance product. It is a holistic program that links-up relevant ecosystem partners to help customers to get in control of their disease. Customers will receive one starter kit from Roche’s Accu-Chek for free. This is to encourage them to start with Self Blood Glucose Monitoring (SMBG). They will also have access to diabetes management application, developed by Prenetics, where they can track key health indicators such as glucose level, food quality, steps and weight. Customers will also be able to chat with a certified dietician to understand how to change their diet in order to reach their goals. Last but not least, we also work with leading hospitals in Thailand (Theptarin Hospital, Bangkok Hospital and Vejthani Hospital) to expand our reach and make sure the right patients get to know this innovative initiative.

2. The early results and future
BaoWan BetterCare has been officially launched on 24th of April 2018. So far, we have collected a lot of positive feedbacks from many different sources. However, the most important feedback for us is the one from customers. We have seen a real interest coming out from diabetics in Thailand which make us confident we are moving in the right direction to have a real impact!

This program is the first of its kind to be accepted into the regulatory sandbox of the Office of Insurance Commission (OIC) of Thailand. While the program is currently focused on Thailand, we see a huge potential to easily scale it to the entire region or even worldwide through our global partners to reach and help the 415 million diabetics in the world.

Last but not least, this project is much more than just selling an insurance product. It is about tracking relevant health data, understanding the impact of behaviour change and control that it will ultimately result in risk reduction. All of this is done so that the insurance industry can expand relevant coverage to the right target customers. Diabetes is just one of many chronic diseases from which people suffer. This is only the beginning. The future of insurance is all about personalisation in product and pricing through data. We are shifting the insurance paradigm!