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The ‘Nudge Theory’ of this year’s Economics Noble winner Richard Thaler is finding resonance across varied fields — including in the insurance industry.
The Hong Kong-based AIA Group, Asia’s largest listed life insurance group, has been nudging customers to adopt healthier lifestyles through its Vitality programme. In a break away from the end-of-life marketing and communication adopted by a large section of the insurance industry, AIA Vitality focusses on wellness and the benefits accruing to customers from a commitment to healthy living.
At the recent AIA Media Day in Hong Kong, Ng Keng Hooi, Group Chief Executive and President, AIA Group, said: “Vitality is a new way for our agents to engage with customers, by persuading and convincing them to live healthily.”
Stuart Spencer, Group Chief Marketing Officer, AIA Group, explained: “The ‘you die-we pay’ approach is no fun. AIA Vitality uses behavioural economic principles to drive change in key areas of health risk, including physical inactivity, poor diet, smoking and other risky behaviours.”
Changing the conversation from end-of-life to vitality also helps AIA work around taboos associated with life insurance in some Asian markets, added Spencer.
AIA Vitality that has been introduced in some of the company’s markets such as Hong Kong, Singapore and Malaysia follows a three-step customer outreach approach — know your health, improve your health, enjoy the rewards.
The rewards can be significant. Tim Beardsall, Head of Customer Office and Proposition, AIA Group, said: “The maximum discount for staying fit can go up to 25 per cent of the premium. We start with 10-15 per cent and then go up to 25 per cent if the customer stays engaged.”
Tapping footballTo drive the Vitality programme, AIA taps into football and footballers in a big way.
TV commercials with the theme ‘whatsyourwhy’ featuring AIA’s global ambassador David Beckham seek to understand people’s motivations to live a healthier life. AIA has also renewed and expanded its partnership with the Tottenham Hotspur Football Club, or Spurs as the club is known to its fans.
Adrian New, Director of Football Initiatives, AIA Group, said, “The partnership with Spurs helps AIA bring to life our efforts to promote healthy living and the positive benefits of teamwork. This provides us with a unique and innovative method of engaging our customers, agents and partners as we roll out our AIA Vitality programme as well as wellness programmes across the Asia-Pacific region.”
On plans to introduce the Vitality programme in India, Rishi Srivastava, Senior VP – Chief of Proprietary Channels, Product and Marketing and Distribution Strategy, Tata AIA, said, “We are always evaluating all the good initiatives that we can leverage from our parent companies to serve our customers in the best possible way.
“So it is with this latest initiative. We are considering the options within our regulatory framework to see what possibilities there are and how customers can benefit from it.”
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