Prudential applies needs-based segmentation to product, communications

Prudential Hong Kong has launched a new health-protection product called PRUmyhealth prestige medical plan, which offers extra services such as chemotherapy, radiotherapy, surgical fees for organ transplants, pregnancy complication coverage, hospice care and 24-hour worldwide emergency assistance.

"In Hong Kong, costs of healthcare treatment at private hospitals are not easily afforded by the general public," said Iain McConnachie, chief marketing officer of Prudential Hong Kong. "Our plan enables them to enjoy true peace of mind at an affordable cost.”

In order to raise public awareness of healthcare and wellbeing, the insurer also launched an online platform that guides customers through a health assessment via a questionnaire on family and medical history, lifestyle habits, biometric measurements and readings, eating habits and stress.

Users will receive a personal score showing the status of their health against people of the same age, race and gender. A score of below 60 means customers need to beware. "That's where you are in the queue to die," quipped McConnachie. "The smaller the number, the more at-risk you are." 

Based on the assessment results, Prudential will offer weekly health tips, coaching and other health-related information to encourage users to improve their all-round health by the end of a 12-week programme. Each customer or prospect will receive followup with a Prudential agent, according to their health needs and attitudes.

Emphasising that this platform is unique to Prudential, McConnachie elaborated on how this is differentiating the insurer from competitors.

"A traditional insurer is interested in just selling a product: 'Here's some health insurance, buy it, thanks very much'", he said. "Historically, insurers have kept on pushing new impenetrable products in a more and more crowded marketplace."

The company is trying to be more holistic. "It's better for us if our customers don't claim, and it's better for them because over time the cost of insurance goes down," he said. "Our primary objective is to prevent people claiming on our insurance, to reduce the need for claims. We're very open about that."

The same principle of offering additional non-insurance benefits goes for Prudential's child-related products. "We bundle up a whole range of information including how much it takes to send your child to university in various countries, and then propose, by the way, here's a product that can help you to fund that in 18 years. All that is branded under Prudential" he explained.

Basically, the company has a strategy for acquiring and retaining customers based on needs-based segmentation as opposed to being product-focused. That is communicated via an integrated marketing campaign with advertising featuring imaginary letters from the heart, lungs and liver complaining about the deterioration of the body (see above).

The campaign "reminds our customers that Prudential Hong Kong is committed to helping them plan for their steps toward leading a healthy lifestyle,” McConnachie added.