Life Insurance Company Motivates Health Through Rewards Program
One life insurance company is aiming to enhance the health habits of its customers through incentives, ultimately benefiting its financial performance. Feel familiar? Many intend to maintain a healthy lifestyle, but daily tasks often derail those intentions.
John Hancock’s Vitality program offers a solution. This life insurance initiative rewards policyholders with points for activities like gym visits, purchasing nutritious foods, tracking sleep, and getting screenings. These points can be exchanged for tangible rewards such as smartwatch discounts, Amazon or Starbucks gift cards, hotel deals, retail savings, and discounts on fruits and vegetables.
Gamified Incentives
Enrollees advance through tiers from bronze to platinum as their healthy habits grow. One participant, Matt Hudack, expressed appreciation for the program. With 5,400 points, he benefits from incentives, such as a discount at REI, which aligns with his outdoor hobbies.
Similar to airline loyalty programs, the Vitality program encourages repeat engagement and loyalty through tiered rewards. A standout feature for Hudack is the digital prize wheel, which he finds engaging and enjoyable.
A Shift in Approach
John Hancock CEO Brooks Tingle highlights the shift in life insurance focus from death to improving life quality. Traditionally centered on death preparedness, the company now emphasizes living better.
Behavioral Engagement
Dr. Dariush Mozaffarian of Tufts University contributed to the program’s dietary incentives. He believes its gamified structure helps maintain user interest and engagement.
Mozaffarian notes that uncertain rewards can be more appealing than fixed amounts, as individuals enjoy the excitement of potential larger gains.
Early Results
CEO Tingle presented initial findings to the House Ways and Means Subcommittee on Health, noting that Vitality members are more active, and many improved their blood pressure within a year. The program also offers discounts on advanced screenings through partnerships, aiding early detection.
Dr. Samir Sinha, a geriatrician, acknowledges the potential impact on longevity through ingrained behaviors but recognizes the need for more long-term evidence.
Incentives, like lower premiums, convey a financial benefit for customers participating in the program, mirroring similar strategies used by car insurers.
Professional and Personal Benefits
The program has also positively impacted Hudack’s professional life, transforming challenging conversations about life insurance into discussions about improved living. He dedicates a staff member to manage Vitality clients, enhancing client engagement.
With a reset of activity counters each week, Hudack finds renewed motivation to start fresh, underscoring the ongoing benefits of the program.