Health insurer nib has outlined its strategy for the year ahead following its FY20 results, and CEO and managing director Mark Fitzgibbon says it will focus on personalisation, improving value and affordability, and adapting to the COVID-19 crisis.
nib reported a 40.3% drop in profit in August, though its New Zealand business managed to increase its profit by 18% to $23 million. Fitzgibbon says COVID-19 has changed things “dramatically” for the business, and that it will be rethinking its work processes, mindset and product benefits, among other things.
“As you’d expect, a key area of focus for us is the ongoing COVID-19 crisis and how we adapt to that, from the way we design and price products, to the way we operate our business,” Fitzgibbon said.
“The very nature of the work at nib has quite dramatically changed, and we’re taking this opportunity to rethink where and how we work, and our whole mindset and philosophy.”
“We’re attempting a transformational strategy,” Fitzgibbon explained.
“In addition to providing a level of protection for our members, we also want to be at the forefront of using data science and technology, and be well placed to predict the risk of disease. With that prediction, we can put products and services in place which can prevent, better manage or more precisely treat that disease.”
Fitzgibbon says its data-driven personalisation strategy is an “enormous ambition,” but the benefit for the customer will be a fully personalised risk profile and access to electronic health records, along with the financial protection that they already receive. He says it will also help drive down nib’s claims and operating costs.
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“That particular investment is really at the heart of our ambitions across our various business components,” he said.
“We’re thinking about increasing the value proposition for consumers, and we’re thinking particularly about the younger people.
“We also think this will better help manage claims and operating costs. That’s the key to our business strategy, and the emphasis is on personalisation, improving affordability, and hopefully sustainability.”