Like Xbox, Adobe and Apple, health insurers could benefit from implementing a subscription model for their products, where consumers pay upfront for a service and continue to pay a monthly or annual fee for a specific period.
Insurers could reap the benefits of low upfront costs and predictable revenue, reported LifeHealthPro. Advantages of the subscription model include forecasting their next month's revenue within a 3 percent margin and boosting conversion rates due to the associated convenience and savings.
What's more, health insurance subscriptions would allow consumers to add extra services onto their policies. Companies already using subscription services have seen the amount of services consumers purchase rise by as much as 74 percent due to these "add-ons," the article noted. Subscription policies also could appeal to consumers who want to personalize which medical services are covered.
Such a revolutionary commerce model could become part of the industry's move to a more consumer-driven market, where insurers must demonstrate to consumers the value of their products and equip them to make informed insurance decisions, FierceHealthPayer previously reported.
Insurers that are interested in starting the shift toward a subscription model should first recognize the approach requires selling a health insurance experience rather than only a product. They also must educate employers and consumers on this new model, explaining how it helps each group by highlighting the ability to personalize plans and save money, LifeHealthPro noted.
To learn more:
- read the LifeHealthPro article