Growing up on a dairy farm is not the usual jumping off point to joining the insurance industry. For Heather Smith, though, the open spaces and fields of Scotland weren’t enough to hold her back from the bustle of city life.
She graduated from university, the first of her family to do so, and began her career in sales at Norwich Union. She’s held senior roles at Aviva, LV= and was managing director, retail, at Allianz Insurance. When an opportunity arose to become chief executive of AXA Health in February, she knew she had to go for it.
“Being the CEO is a very privileged position given [that] you are responsible for so many aspects of business and people's lives,” she says.
“It’s all about the importance of setting the right strategy, having a great culture, looking after the health and wellbeing of our people, managing our customers and getting good outcomes for them. [This is] all while working with our regulator, a responsibility I take very seriously.”
Flexing for customer demand
Inevitably a role of this calibre means the pressure is always dialled up, including ensuring AXA Health keeps pace with its changing customer needs and demands- both individual and corporates. “Post-Covid, everybody has standard digital services, so we need to make sure we keep pace with where customer demand is,” says Smith.
“We all love the NHS, but there’s a reality where people are finding themselves on long waiting lists. We therefore need to consider what is the future of our health propositions and products and what do we need to do to continue to meet the demands of health where people want affordable modularity[personalisation] and different things covered.”
Since last working in the health insurance market in 2005, the general health landscape of provision has changed immeasurably, with menopause, neurodiversity and mental health now key priorities in the market.
Smith adds: “The focus now is not just on curing things when they go wrong, but also preventing them and thinking about how people stay healthy.”
One of the largest changes Smith has witnessed since her return to the health insurance industry is the shift in responsibility in employee health outcomes, with employers now placing greater emphasis on/taking greater care with employee health.
She says: “A good, productive and healthy workforce is good for business, morale and good for culture. Employee feedback has been a really powerful voice and far more people are willing to speak up if they are struggling.”
With a greater emphasis on health, however, demand for services quickly follows suit. It’s an ongoing challenge for Smith and the team, one which she is prepared to tackle head on.
During her first few months as CEO, she has listened to a large number of anonymised 24/7 helpline calls to find first-hand the level of customer demand.
The focus now is not just on curing things when they go wrong, but also preventing them and thinking about how people stay healthy.
Mitigating rising health costs
REBA’s Employee Wellbeing Research 2024 found in the next two years, insurance premium price rises will cause increases in spend for four in 10 employers. So where does that leave insurers such as AXA Health when it comes to mitigating costs for employers and proving value?
Smith says: “There's no doubt about it, people have accessed our services more as they've struggled to access care [via the NHS]. There’s more demand for our own GP services, our virtual GP services, diagnostics and for treatment.
“Employers have seen increases in their premiums. But they have also still been making that value equation, and having listened to a number of calls, I can hear people saying they understand their costs are going up.
“At the same time, they’re keen on their insurer to make sure they’re doing their bit of the equation, which we absolutely are. Sometimes that means not always having a human solution where a digital one or online option would be good for the customer.”
In February 2024, AXA Health announced it was expanding its private medical insurance proposition by acquiring online outpatient services provider HBSUK to strengthen its services for muscles, bones and joints.
Smith says: “We’re seeing digital solutions as good for the customer and the business. It’s a different way to deliver the first phase of diagnosis, but it means customers can input absolutely everything about their health, so when that information gets to the doctor at the other end, it then becomes a really effective appointment.
“It’s taking that eight-week process into maybe eight days. So you’re getting an understanding of what you need much faster.”
Investment in digital tools is nothing new for insurers, but as tech becomes more advanced and pressure on the NHS continues, insurers which have a wide variety of efficient processes will find themselves in the best position to offer value for customers in a very competitive market.
There is so much advancement in diagnosis and treatment, and we have a real opportunity to help more people more of the time. AI is helping us look at lots of health data and be able to see patterns and information quickly as to who needs the care most.
Adapting to shifting needs
Musculoskeletal claims equate to 40% of the total claims put through AXA Health, but demand for mental health support is rapidly increasing and may well supersede other health concerns. This issue is particularly noticeable for those under 30.
Smith says: “The generation that has been through Covid, Brexit and virtual universities are now entering into the workforce, and sometimes virtually, so they are having to learn their job in a different way.
“As a generation, they are also more willing to be open and talk about it [mental health], so we’re seeing an increased demand for [mental health] diagnostics because they are struggling to see their GP about it.”
Looking to the future
Though employees seeking help for their health concerns is a positive step, it creates an issue for employers in how to cater for the wide variety of different conditions and healthcare needs.
To help mitigate costs, Smith encourages reward and benefit professionals to take note of engagement rates and impact of the health offerings they currently provide.
She says: “Employers need to understand the history of the cover and how employees are using these benefits. We are open to reviews and helping employers see the usage of the schemes and those making a genuine difference.
“There needs to be joined up conversations between broker, client and insurer, and I’ve recently spoken to three large corporate customers about this very issue of efficiency.”
The health market continues to be a progressive, and competitive, space, no doubt spurred on by advancements in AI. The possibilities technology can offer insurers such as AXA Health are difficult to predict, but for Smith, the pace of change is one of the best parts of the job.
She adds: “There is so much advancement in diagnosis and treatment, and we have a real opportunity to help more people more of the time. AI is helping us look at lots of health data and be able to see patterns and information quickly as to who needs the care most.
“Five people could be on a waiting list with the same condition but could be in a different place with it. So the fact we can sift through and get to those who need it most has got to be a good thing.”
These exciting advancements will certainly keep Smith and her team busy, but what will keep the new AXA Health CEO motivated?
“I've always felt health has such a strong purpose and such an important role in people's lives, there's nothing more vulnerable for someone than when they're unwell, or when they feel uncertain about their health. It is so material to how you live your life.”
