Introduction

Rewards and Loyalty Industry

Reward and loyalty programs are important tools to drive business sales and visibility. Businesses can use these programs to attract new customers but perhaps equally as important, they can be used as a powerful customer retention tool. According to a recent Nielsen Report, 67% of consumers spend more, and more frequently, at businesses with loyalty programs.

Globally, the size of the loyalty program market is estimated to be USD 6.9 billion by 2023 and is forecasted to grow at an annual growth rate of 20.8% over the next five years. The prospects for this industry continue to be strong.

Oddly, we can get real wellness benefits for free from these programs. You can find various tools that can help you meet your health goals. The fitness app helps you keep track of your daily steps and heart points goals. You also get a monthly or weekly fitness report. Moreover, some apps can help you track your daily intake as well.

It’s your initiative and determination that requires proactive action to overcome your challenges. It becomes difficult when people are busy meeting deadlines and battling fires daily. The average number of steps people take in an urban lifestyle is less than 5,000. Now the health insurance sector has caught on to this concept and is motivating the customers toward a healthy lifestyle with these fitness and wellness programs. Steps are taken to ensure optimal use.

Insurance companies are encouraged to incentivize the policyholders and customers who meet the set wellness criteria with reward points.

The insured can utilize these points to save on the policy renewal premium or redeem it for membership in gyms, and yoga sessions. The insurance companies can use the opportunity to set the wellness criteria as per the lifestyle adopted by the insured and not just his health status. Moreover, insurance companies are expanding the incentivization into areas related to crypto and the blockchain.

Despite these positive prospects, the current landscape for loyalty-based systems is full of legacy systems that are outdated, inefficient, and serve neither the best interests of the customer nor the insured. Presently, about 57% of customers do not have an idea of their reward points balance. 38% of customers are unsure or unaware of the value of these points. About 57% believe that these reward programs take too long to earn a point or a mile. Finally, 53% of customers lose interest in the type of rewards offered. Despite the billions pumped into the loyalty and reward programs, more than 48 trillion reward points are lying idle in a lot of accounts. This is estimated to be around 360 billion Dollars. This leads us to a quick overview of the pain points.

Wellness Industry

The wellness industry sometimes referred to as the health and wellness industry encompasses all the activities carried out to promote both the physical and mental well-being of any single individual. The sector involves things like Yoga, healthy eating, personal care, weight loss, meditation, spa, retreats, wellness tourism, etc. The valuation of the Global wellness industry stood at about $4.9 trillion in 2019, $4.4 trillion in 2020 (attributed to Covid- 19), and is projected to reach $7 trillion in 2025 translating to a 9.9% annual growth. This is a great indication of a robust comeback from the pandemic. So far, there are about seven sectors within the wellness industry:

• Personal Care & Beauty with a valuation of $955 billion

• Healthy Eating, Nutrition, & Weight Loss with a valuation of $946 billion

• Physical Activity with a valuation of $738 billion

• Wellness Tourism with a valuation of $436 billion

• Traditional & Complementary Medicine with a valuation of $413 billion

• Public Health, Prevention, & Personalized Medicine with a valuation of $375 billion

• Wellness Real Estate with a valuation of $275 billion

• Mental Wellness with a valuation of $131 billion

• Spas with a valuation of $68 billion

• Workplace Wellness with a valuation of $49 billion

• Thermal/Mineral Springs with a valuation of $39 billion

The insurance industry

The essence of insurance is to provide financial protection to individuals and companies when various kinds of losses or damages occur. Insurance providers like LivWell have to evaluate the risk of insuring the person or something and then provide instruments or policies based on the evaluation. All policies provided are legal contracts between the insurance provider (in this case LivWell) and the policyholder.

In terms of statistics, the global insurance penetration stood at about 7.3%. In 2017 alone, the global insurance industry grew by 4%, which is the same as the compound level for 2010 – 2016. The total premium reached $4.7 trillion in the same year with the Life insurance sector accounting for 46% with a growth rate of 3.2%. Following closely the Life insurance sector is the P/C insurance sector accounting for 30% with a growth of 5%. The fastest sector within the global insurance industry is the health insurance sector which makes up 23% of the global premiums and grows at a rate of 5% year over year.