nib New Zealand “optimistic about this year”
nib New Zealand “optimistic about this year” | Insurance Business New Zealand
Life & Health
nib New Zealand “optimistic about this year”
Chief executive talks about priorities
Life & Health
By
Terry Gangcuangco
“We can’t just keep doing things the way we’re doing them today; we have to innovate.”
Those were the words of nib New Zealand chief executive Rob Hennin (pictured) when he sat down with Insurance Business to talk about his priorities at the helm and what he believes will be the opportunities for the insurer moving forward.
Expectations for 2024
This year, Hennin expects the demand for health and wellbeing services to continue to increase. In fact, he projects demand to increase in excess of the current ability to supply. Additionally, in terms of access, the CEO thinks challenges will continue for those facing inequity in services.
People’s expectations are also heightened, Hennin said, amid a new government, plus “the reality of inflation” putting pressure on both supply and demand.
“The latest inflation figure I saw was about 5.6%,” he told Insurance Business. “What we’re seeing in medical claims inflation is running at least double that. We had a communication recently from the Private Hospitals Association saying that they expect some of their costs to go up as much as 15%.
“So, in terms of affordability, it’s a real challenge in that your input cost – the cost of providing the services in health – is rising at a rate that’s higher than just standard inflation.”
On a more positive note, though, the CEO is keen to see technology being leveraged further, given the long-term trend towards new and better drugs, as well as the benefit of more telehealth options.
So, what are the implications for an insurer like nib New Zealand? According to Hennin, the situation means two things for them.
He said: “It means a real focus on efficiency and productivity, and innovation, to counter that. If you think about it as an insurer, or as a provider of services, there really are only two choices. One of them is to put your price up, and the other one is to mitigate those cost increases by being more efficient.
“[Our goal is] cost containment to address affordability – using data science, analysis, insights, AI (artificial intelligence) to be much clearer on what the real need is, and also to be much clearer on what the best personalised solution for a nib member is. Targeting those health management services well is becoming more and more important, because that’s how you get more and more efficient.”
Priorities and opportunities for nib
Outlining his areas of focus, Hennin cited business growth, improved health outcomes, and innovation.
“We have a significant opportunity to expand the value that we offer to our members, both by differentiating the products that we have in the marketplace and also adding health management programmes or wellbeing services that really support good health for our members,” Hennin shared when he spoke with Insurance Business.
“We call this our ‘P2P’ strategy – going from being a payer to being a true health partner with our members, and it does redefine the way we look at the products and services we offer. Supporting good health is really, really important, rather than just treating sickness or injury. So, that’s my number one priority, is growing the business.
“My number two priority is improving the health outcomes of populations where there’s a real social impact. How do we create a real and meaningful difference for Māori in terms of giving them both real-time access to the healthcare system and then improving their long-term health outcomes? That has a real, tangible social impact not just for the Māori population, but also for the total health system in New Zealand.”
Hennin’s third priority is developing the insurer’s ability to “really leverage” innovation and technology for the business, the results of which include more sustainable practices and more responsible use of resources.
He said: “I’m thinking there in terms of AI, data science, and remote technology and telemedicine. We’ve got some great capability within the nib Group, and we’ve got some great business partners in New Zealand… It’s just being able to deliver in much more efficient and personalised ways for our members…
“We are optimistic about this year. A challenge is a challenge to us – it’s not something to be worried about; it’s something to focus on. We have so many good opportunities to add value and differentiate in this marketplace, to make sure that, because of our P2P strategy, we really are able to offer highly personalised products and services to our members and help them to achieve better health outcomes.”
What do you think about this story? Share your thoughts in the comments below.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
