Jane: Thriving in the Silver Economy
In previous articles about the Silver Economy, about Golden Opportunities and Platinum Practices, we established that the 60+ generation is the fastest-growing consumer group, and on top of that, they enjoy an increasingly higher spending power. The Silver Economy is a big opportunity and a great new profit pool with exceptional opportunities for companies to contribute to society, to innovate and to profit. The silver revolution with accompanying risks of increasing number of claims or rising healthcare expenditures evidently has an impact on the insurers business. Value propositions should be adapted to this segment of more and more digital-savvy and wealthy seniors. We discussed some of the best practices – at least in our opinion – that cater to the Silver Economy. In this article we would like to highlight one in particular, so we sat down with Christophe Moortgat, CEO of Jane.
Welcome Christophe, in the recently published white paper ‘Silver Economy for the Insurer’ you mention a ‘perfect storm’, in which demographic trends and healthcare trends converge to new opportunities for innovation. Can you expand on that?
Christophe: “Of course I can, at Jane we believe those trends have a huge impact not only on society, but also on the insurers business model. First of all, as you may already know, the European population is aging. Public and Private healthcare financing schemes will have difficulty coping with increasing costs. While the healthcare industry is struggling with these rising expenditures, this industry is also changing. Next to an increasing adoption of digital solutions, consumerism is also on the rise. The expectations about service levels of health and elderly care have changed. Seniors prefer to stay home for a longer time and prefer hybrid concepts. Insurance companies need to step up to the plate and address some of the challenges healthcare and the silver generation face. In order to address these challenges, new systemic approaches to healthcare and digital solutions are needed. A complex puzzle needs to be solved.
The current healthcare trends revolve mainly around digital and technological innovations. Starting off with prevention; experiments with gene therapy and AI are rising. Also, on-demand healthcare such as digital health platforms, remote monitoring and diagnostics, personalized medicine, medical 3d printing, and human augmentation will make sure seniors are able to live home for a longer period of time and be mobile for longer. The adoption of technology solutions has even accelerated due to covid and social distancing. Finally, sustainable healthcare such as augmented reality and virtual reality, AI diagnosing, automation, medical drones and autonomous vehicles make the rapidly growing silver generation more sustainable.”
Looking at these opportunities, would you say insurers are prepared to seize these opportunities?
Christophe: “I think that insurers can seize these opportunities if they really understand these challenges and missioned to address them. Customers are increasingly willing to share data and pay extra of better risk prevention services. This data offers an extra value because insurers can adapt their offering to real life situations. There is a demand for new personal and commercial lines of insurance due to the demographic and social evolutions. Insurers’ sales and marketing teams need interdisciplinary skill sets, such as data science and expertise in conversion optimization, to improve end-to-end lead and sales processes. Add-on services, personalization and policy flexibility are beginning to power customer loyalty. Products need to be tailored to the changing circumstances and needs of the silver economy. On top of that, demand for new insurance models on the policyholder’s side is higher than on the insurer’s side. If insurers are willing to alter business models or engage in new relationships with their stakeholders, this offers a great opportunity.”
So, what do you propose as the perfect engagement model which would really tap into this new demand?
Christophe: “A shift is needed, from risk-insurer to Preventer, Partner and Payer, This is the 3P customer engagement model for health care. A preventer or protector that offers risk control and advisory, a partner that offers value-adding services and a payer that covers risk and manages claims. Insurers can meet customers’ shifting risk coverage needs better and gain competitive advantage. They should consider co-creation within ecosystems that offer this access to knowledge, data and technology, instead of developing this knowledge by themselves. Insurtech and health tech can pave the path forward and take on this role. With ecosystems and cutting-edge technology, they can accommodate the growing demand and deliver seamless digital experiences. If insurance companies do not change and take the lead in ecosystems with insurtech companies, what would keep the latter from disrupting the market themselves?”
In the white paper you mention ‘Ambient Assistant Living’ as a key ingredient or success factor to cater to the silver generation. Can you explain what Ambient Assistant Living is about?
Christophe: “The Ambient Assistant Living market is the market that provides aid to old or differently abled people living self-sufficiently. This market is expected to grow because of technologies and smart-home equipment. For example, medical assistance systems and temperature sensors are booming now. Insurance companies can tap into this market when collaborating with insurtechs. For example, wearable tech and home automation companies provide specialized solutions for the elderly care. This access to Ambient Assistant Living market may be an interesting way to address the challenges of changing customer expectations of the silver economy.”
Jumping to Jane. You basically designed Jane on the basis of these demographic and healthcare trends and insights. What makes Jane unique?
Christophe: “The interplay of alarm buttons, motion sensors and artificial intelligence is what makes Jane special. Caregivers or seniors can choose in which situations they want to send or receive notifications (alarm button, care rules and smart alerts) and determine to whom and how these notifications are sent. On top of this, Jane has a number of personalized features. You can create specific care circles for every individual and adapt to changing care needs of each and every resident. The fact that you can add or remove buttons or sensors makes Jane a modular and scalable system.
Finally, Jane is very secure and private; these sensors cannot take pictures, nor record audio. However, they check for movement in certain rooms at certain times. The sensors detect motion and temperature, which enables to secure the privacy and security of the senior. The Jane system runs via a strong protection against possible cyber and hacking attacks and no information or data resides on the local components to prevent data theft. It’s actually a combination of things that make Jane unique. And moreover, how deep customer understanding reflects in functionalities and experience. We believe that Jane can help insurers to seize the new opportunities the silver economy offers; tapping into new revenue streams with new business models. We’re happy to help.”