insurance 2017 Agenda Expanding our focus to health 1 insurance - PowerPoint PPT Presentation

AIA and health insurance 2017

Agenda Expanding our focus to health 1 insurance Health & wellbeing that solves 2 real problems for your clients 3 Making it work for you

Health insurance is a large dynamic market 22 13.4 $3,653 2 Mix of new and billion 1 million 1 existing Premium revenues People covered Typical Family premium 1. APRA PHI Operations Report data 2015-2016 (released June 2016) – Whole fund Hospital treatment, General treatment & ambulance 2. Medibank’s Standard Hospital and Extras annual premium for a family living in NSW with 25.934% Australian AIA confidential and proprietary information. Not for distribution. Government Rebate with a $500 excess

Government policy settings encourage take up of PHI 5 Hospital Treatment Coverage 80.00% Medicare levy surcharge 1 July 2000 Introduction of Life 60.00% Time Health Cover Australian Government Rebate 40.00% 1 July 1997 1 January 1999 Lifetime health cover loading 20.00% A Medicare Levy Introduction of 30% Surcharge (MLS) Rebate Australian Government Rebate 0.00% AIA confidential and proprietary information. Not for distribution.

But consumers increasingly question the value of 6 health insurance AIA confidential and proprietary information. Not for distribution.

There are unique dynamics of the health insurance market 7 aren’t understood by consumers Current state They way consumer’s see it Community rated – not risk rated I’m healthy – why don’t I pay less than unhealthy people? Opportunities to differentiate are limited It’s too hard to tell the difference Provider networks create confusion I never know what I’ll get back – but its usually much less than I expect Premium rate rises are regulated – but health cost Health insurance is a rip-off – why do they increase increases aren’t faster than inflation? Fragmented market – many providers It’s too hard to tell the difference AIA confidential and proprietary information. Not for distribution.

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Introducing…. 9 Health insurance that gives back. With AIA Vitality we reward people for taking care of their health. Our brand promise is to partner with people to own their future. To take control of their physical wellbeing. AIA confidential and proprietary information. Not for distribution.

myOwn gives back with a strong health insurance product… 10 Simple, easy to Extra’s cover understand with a focus on product range wellbeing From 50% to AIA Vitality 70% back from membership any recognised included for up provider up to to two adults annual limits per policy AIA confidential and proprietary information. Not for distribution.

… bundled with AIA Vitality 11 Weekly rewards 5% upfront $250 cash back from Woolworths, premium and AIA Vitality iTunes or Boost discount held as fee waived if Juice - or donate long as Silver AIA you hold AIA it to charity – for Vitality status is Priority meeting activity targets maintained Protection cover Discounts that Discounts that Its easy to earn support your reward your AIA Vitality healthy lifestyle- healthy lifestyle points and active wear, gym – up to 50% off myOwn is memberships, flights and spa backed by AIA shopping rewards treatments and GMHBA AIA confidential and proprietary information. Not for distribution. For full terms and conditions of AIA Vitality partners, benefits and rewards, go to aiavitality.com.au

myOwn is a quality health insurance product at a 12 competitive price Victoria $350 Many funds have fewer features $300 and are more expensive $250 than myOwn Premium Mid Package $200 Few funds have $150 more features and are cheaper $100 than myOwn $50 $0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Feature score AIA confidential and proprietary information. Not for distribution. Source: Internal GMHBA analysis based on competitive analysis

myOwn is a quality health insurance product at a 13 competitive price NSW $350 Many funds have fewer features $300 and are more expensive $250 than myOwn Premium Mid Package $200 $150 Few funds have more features and are cheaper $100 than myOwn $50 $0 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Feature score AIA confidential and proprietary information. Not for distribution. Source: Internal GMHBA analysis based on competitive analysis

myOwn is a quality health insurance product at a 14 competitive price Queensland $350 Many funds have fewer features $300 and are more expensive than myOwn $250 Premium Mid Package $200 $150 Few funds have more features $100 and are cheaper than myOwn $50 $0 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Feature score AIA confidential and proprietary information. Not for distribution. Source: Internal GMHBA analysis based on competitive analysis

myOwn is backed by brands with a mix of local 15 knowledge and global experience AIA confidential and proprietary information. Not for distribution.

myOwn’s is for everyone 16 Young singles Growing families Established families AIA confidential and proprietary information. Not for distribution.

Why buy life, health and AIA Vitality together? AIA Vitality fee 5% upfront health AIA Vitality $250 prepaid $895 premium discount linked to AIA Flex discount held as long as the Visa card 3 Priority Year 1 value member maintains on AIA Priority Protection is Silver AIA Vitality Protection 2 waived status $150 1 $120 $375 12.5% on a $3000 policy $645 This is Brian. Brian came to you for advice around life insurance, but you discovered he wasn’t loyal to his health insurance provider. This is Year 2 value the combined value you could present to Brian for buying myOwn health with AIA Vitality and AIA Priority Protection together Assuming Gold Vitality status 2 1. Example only. If pre-discount is Health insurance premium was $3000 a 5% Discount equals $150 off (Premium becomes $2,850) 2. Assumes new Priority Protection customer – starting AIA Vitality flex discount of 12.5% and assumes Gold status in Year. This maintains Life discount at 12.5% and Health discount at 5% AIA confidential and proprietary information. Not for distribution. 3. $250 prepaid Visa card reward payable when Life cover is active and 90 days after purchase of Health cover. Applicable to all AIA Priority Protection products. Full terms available at launch.

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6 ways myOwn’s proposition could help your business 19 1. Supplies a new client touch point via an expanded product offering 2. Gives the ability to increase your revenue per client and supplies an important diversification to income 3. Helps open more doors and supports your segmentation model 4. Leads to referrals which are targeted to your ideal client and where your time wants to be focused 5. Firms up your evolving business proposition in delivering your clients real financial and physical wellbeing 6. Places your business that continued one step ahead of the competition AIA confidential and proprietary information. Not for distribution.

Commission structure 20 myOwn health commission Brian’s scenario clawback provision $3000 Health Premium $3000 Life, TPD, Crisis & IP Premium Remember Brian? $600 Health commission Brian has agreed to purchasing myOwn health $2400 Life commission with AIA Vitality and AIA Priority Protection cover $250 AIA Vitality activation fee $3250 Year 1 revenue 100% 50% 25% 30 days 31 – 60 days 61-90 days AIA confidential and proprietary information. Not for distribution. Note: Health insurance is not a financial product

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