May 2015
Shaping the Digital Future
FLASH INSIGHT
Winning with Mobile Health Apps
How health insurers can gain a competitive advantage by
embracing mobile as a driver for innovation
Copyright
This document is intended for personal use only.
Distribution is only permitted without any changes or omissions – publication, in
whole or in parts, requires prior written consent by MÜCKE, STURM & COMPANY
and correct citation of sources.
All mentioned company names, logos, brands, brand symbols and other copyrighted
material are the sole properties of the respective company; they are only used for
illustrative purposes.
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Health insurers can use mobile apps to gain a competitive advantage. The definition
of a digital strategy and transformation of the organization are key success factors.
Key Take-Aways
1
2
3
Source: Mücke, Sturm & Company
Health insurers are lacking innovative features
The analysis of the top 10 private health insurers in selected countries shows that in every country health
insurers offer mobile apps, yet oftentimes lack innovative features. Provider search, contact details, and
claim submission are the most popular features. Innovative features like medical appointments or digital
bonus programs have very low penetration rates.
Mobile apps can lead to a competitive advantage
In the private health insurance market only few insurers use innovative features to differentiate themselves
on the market. Yet many innovative features can unlock promising benefits for health insurers.
A comprehensive mobile app offer can lead to a competitive advantage through improved brand awareness,
higher customer engagement, increased customer satisfaction and loyalty, and decreased costs for health
and administration.
Digitalization needs strategy and organizational changes
Aetna is a best practice example for a an insurance company that has embraced digitalization. Its fast-failure
approach to releasing mobile apps and the willingness to invest in and acquire digital knowledge not only
point to an underlying digital strategy, but also demonstrate that it has built up the necessary internal
business and IT capabilities.
3
MS&C has analyzed the mobile app offerings of the top 10 private health insurers
in 6 countries covering all geographical, innovational and economic aspects.
Scope
1
The countries are selected on the basis of the criteria geographic location, innovational strength and national economic situation.
Source: Mücke, Sturm & Company, company websites
4
The average penetration of mobile apps among the top 10 private health insurers is
75% with the United States leading the benchmarked countries.
Mobile App Penetration
United States
Germany
100%
Australia
90%
United Kingdom
70%
Offer an app
Singapore
60%
80%
India
50%
Do not offer an app
Source: Mücke, Sturm & Company
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60% of health insurers use mobile apps as just another channel, offering only a
limited number of features. However, Aetna clearly stands out with many features.
App/Feature Matrix
Number of apps
7
Developer
Researcher
Number of
mobile apps
Penetration
among insurers
Ø Number of
Features
60%
3
13%
5
13%
7
7%
7
4%
8
3%
14
4
Beginner
Builder
1
1
7
14
Number of features
N=45
Source: Mücke, Sturm & Company
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Basic and operational features are most commonly offered. However, innovative
features are lacking in many health insurers’ feature portfolios.
Most Common Features
Provider search
67%
Contact details
53%
Claim submission
General health information
38%
1
36%
Contract administration
Healthcare manual
29%
2
24%
Patient ID
24%
Overview coverage & expenditure
22%
Vitality tracking
22%
Fitness tracking
20%
Discounts
18%
Medication services
Personal health information
18%
3
18%
Conclusion of contract
16%
Premium calculation
Personal medical record
13%
11%
Emergency help abroad
9%
Bonus program
9%
Medical appointments
9%
Basic features
Operational business support
Innovative features
1 General
health information on illnesses, treatments, symptoms and the human body.
Manual which helps to manage all issues that impact the personal health and well-being.
3 Individualized health information based for instance on blood pressure, fitness condition, or weight measurement.
2
Source: Mücke, Sturm & Company
7
App features differ highly between countries, with the U.S. and U.K. offering the
highest number of features and Australia lacking many features.
Benchmarking by Country
United States
Provider search
40%
Patient ID
Overview coverage and expenditure
80%
Vitality tracking
30%
Fitness tracking
30%
0%
67%
50%
Personal health information
50%
Conclusion of contract
10%
Premium calculation
10%
Personal medical record
0%
13%
13%
38%
17%
0%
17%
0%
17%
17
15
Innovative features
100%
29%
0%
43%
0%
40%
0%
40%
33%
20%
0%
0%
0%
0%
0%
40%
11%
33%
14%
0%
0%
0%
0%
0%
0%
22%
57%
80%
40%
11%
57%
0%
0%
25%
0%
33%
30%
0%
13%
20%
Medical appointments
25%
71%
80%
11%
0%
13%
0%
40%
22%
25%
0%
17%
56%
11%
0%
33%
60%
Operational Business Support
0%
17%
0%
Medication services
Source: Mücke, Sturm & Company
50%
60%
Digital bonus program
25%
17%
Australia
80%
56%
25%
83%
India
22%
13%
50%
10%
Healthcare manual
Germany
38%
33%
50%
Contract administration
Basic features
63%
10%
General health information
∑
83%
60%
Claim submission
Emergency help abroad
Singapore
90%
Contact details
Discounts
United Kingdom
20%
29%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
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9
8
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Aetna (USA) stands out as best practice examples for mobile health apps. BUPA
offers the best mobile health app in 3 countries.
Best Practice Examples by Country
Feature score
Innovation score
User Interface
Total Score
Based on number of features
Innovativeness of the features
Graphic and design of the apps
Max. 4 points per category
Aetna
92%
BUPA
75%
BUPA
50%
Cholamandalam MS
50%
AXA
50%
BUPA
50%
Source: Mücke, Sturm & Company
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Aetna has achieved its leading position by offering a broad mobile app portfolio that
consists of two main apps and several other apps for selected use cases.
Overview Aetna Mobile Apps
Aetna Mobile
Aetna Intl
Provider
Aetna
International
Aetna Plan
Selection
2010
2012
2013
2015
PMR1

 Patient ID
 Contract admin.
 Overview
expenses &
coverage
 Provider search
 Contact details
 Provider search
 Contact details
 Claim
submission
 Contract admin.
 Provider search
 Contact details
 Premium
calculation
 Overview expenses
& coverage
iTriage
Resources for
Living
Aetna Get
Active!
2009
2014
2014
 Personal health
information
 Medical
appointments
 Healthcare
manual
 Provider search
 General health
care info
 Healthcare
manual
 General health
care information
 Contact details
 Fitness tracking
 Vitality tracking
1
PMR = personal medical record
Stars stand for iTunes App Store rating
Source: Mücke, Sturm & Company, Aetna Homepage
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Aetna’s success with mobile health apps is based on both setting up several digital
initiatives and reflecting digitalization in its organizational structure.
Overview Aetna
Digital Initiatives
Aetna Inc.
Founded:
1853 in Hartford, Connecticut, USA
Employees:
48.000
Countries:
Worldwide in more than 100 nations
Operating income: $ 4 billion
Revenue:
$ 58 billion
Customers:
24 million medical,
15 million dental,
15 million PBM1
Resources for Living
4.5
Digital Organization & Roadmap
2014
Aetna International
3.5
2013
Aetna International Provider
3.5
2012
iTriage
3.5
2009
Aetna Get Active!
2.5
1.5
Aetna Plan Selection
 Since 2009, Aetna launched a variety of mobile applications
and acquired different mobile platforms like the popular
mobile health app iTriage
 Fast-failing approach: In 2014 Aetna shut down some of its
mobile projects (e.g. fitness tracking aggregation app
CarePass) in order to move on to more promising
innovative projects
Mobile Applications (App Store Rating2)
Aetna Mobile
 Funding of different initiatives in order to leverage
technology and mobile innovations
2010
2014
2015
"We were focused on the next generation
of clinical program that deal with chronic
and other diseases in our first year, and
now we're on the second area around
tech innovation.”
July 2013
Michael Palmer
Chief Innovation Officer
1
PBM = Pharmacy Benefits Management
Based on Apple App Store, April 2015
Source: Mücke, Sturm & Company, Aetna Homepage
2
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Overall, mobile health apps can generate a variety of benefits for health insurers,
which can lead to a competitive advantage.
Benefits of Mobile Health Apps
Branding

Mobile health apps are increasingly expected
by customers, therefore health insurers need to
follow customer usage

Innovative and customer friendly apps improve
branding and brand awareness which in
return influence membership growth positively

Mobile apps open up new target groups
(young people with high affinity to
smartphones)
Customer Engagement
00110
10100
10010
The establishment of a direct customer
relationship leads to

Improved communication through
personalization and a direct communication
channel

Valuable customer insights through
analysis of customer activities (e.g. through
bonus programs, digital fitness tracking,
frequency of app usage)
Benefits
for Health
Insurances
Cost Reduction
Costs can be reduced in two ways


Customer Satisfaction
€

Customer satisfaction is increased:
Reduction of health costs as members‘ awareness
for a healthy lifestyle is increased e.g. through
-
Information easily accessible
-
Processes less complex
-
Digital fitness tracking programs
-
Transparency increased
-
Information on healthy living
-
Disease management programs
Reduction of administrative costs through the
reduction of paper (e.g. mobile claim submission)
and call center staff (e.g. self service tools)
Source: Mücke, Sturm & Company

Customer loyalty is intensified:
-
Digital fitness tracking programs
-
Lock-in-effect as more personal data is
stored within the app (e.g. disease
management for chronically ill people)
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Contact details
Michael Mücke
Managing Partner
Cologne
Darmstadt
Munich
Germany
Munich headquarter
Darmstadt
Cologne
Theresienhoehe 12
80339 Munich
Mina-Rees-Strasse 5a
64295 Darmstadt
Kaiser-Wilhelm-Ring 26
50672 Cologne
T +49 89 461399 0
F +49 89 461399 777
T +49 6151 800 400 0
F +49 6151 800 400 777
T +49 221 995878 0
F +49 221 995878 777
www.muecke-sturm.de
www.xing.muecke-sturm.de
www.twitter.muecke-sturm.de
www.slideshare.muecke-sturm.de
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