The health insurance industry has seen many changes in recent years and has incorporated more technology and holistic solutions to better serve their clients. By using a science-backed solution like PAI, insurers can progress even further to create a more engaging and personalized approach that not only enhances their business but also improves their customers’ health. Here’s how:
PAI uses an individual's personal profile and the heart rate data collected during physical activity to provide a PAI Score. PAI measures each user’s cardiorespiratory fitness (CRF), otherwise known as their VO2 max, or how well the heart and lungs are able to transport oxygen around the body. Major organizations such as the American Heart Association recommend VO2 max as a clinical vital sign that should be measured regularly, as cardiorespiratory fitness level has a measurable impact on the risk of lifestyle diseases such as cardiovascular disease.
The PAI Score has been scientifically validated by a database of more than 45,000 people over 25 years, with researchers finding that maintaining a score of 100 PAI or more was associated with reducing the risk of all-cause and cardiovascular disease mortality on average by 25%, and added an average of 5 years to lifespans. Read more about the science of PAI here.
The scientific and simple background of the PAI Score could be used by insurers in a few ways. The most effective integration would be for underwriting risk and improving risk assessments. If an insurer’s cohort was using PAI for example, the insurer could use that data and compare it with demographics and other health information to optimize their risk algorithms.
PAI is API-led, meaning the technology of PAI can fit seamlessly into an insurer’s current ecosystem. A member could log in to their regular insurance portal and have their PAI Score as another touchpoint for health assessment.
Furthermore, PAI is device-neutral, with end-users being able to access the PAI Health mobile app with an Apple Watch, Fitbit, Zepp/Amazfit and Polar devices.
Insurers can also use PAI to attract new customers, through bundled offerings that include a wearable device and benefits linked to improvements in health. For example, insurers can offer policyholders rewards based on their PAI Score such as discounted monthly premiums or a tiered pricing program.
PAI is also attractive to typically harder-to-reach insurance customers, Millennials and Gen Zers, with the easy to use mobile application appealing to the digital-first demographic.
Finally, insurers can use PAI to drive engagement, which not only will result in a healthier population, but also will trickle down to a reduced risk of claims in the future. Through the PAI Score, insurers can incentivize long-term health through additional benefits, discounted premiums, and more. For policyholders it’s simple as well - they can work towards getting a PAI Score of 100, and then work to maintain that Score, which will ultimately improve their VO2 max.
From our pilot programs we have seen even without extra rewards, the PAI Score is motivating. In a cohort of over 400 people, 90% of participants said it gave them personal satisfaction earning PAI, while 77% said PAI kept them motivated to exercise.
The current health crisis creates urgency around the crisis of lifestyle disease, and insurers have an opportunity to help customers protect their health while also creating value for their business. Insurers can leverage new technologies like PAI Health to innovate their business, empower customers with value-added health resources, and create a positive and health-focused dialogue that demonstrates a new level of customer empathy.