According to The Australian Financial Review today, Qantas has unveiled plans to target 2 to 3 per cent of the $19 billion Australian private health insurance market by introducing a new product, Qantas Assure, in partnership with health insurance nib, that will reward members with frequent flyer points for being more active.
Qantas Assure will allow members to earn frequent flyer points not just for paying their bills but also for meeting targets through a wellness app that syncs with mobile phones and popular forms of wearables, such as Apple Watches and Fitbits, when the policy launches in the first half of next year. The apps will log the number of steps taken in a day and then deposit Qantas frequent flyer points in member accounts.
Qantas said there are estimates around one-quarter of Australians now own a fitness tracker but fewer than one in five Australians took the recommended 10,000 steps per day.
Members will be able to choose from a variety of daily or weekly targets depending on their lifestyles, with the number of frequent flyer points earned increasing with the size of the target.
"We think it will be one of the highest ways of earning frequent flyer points in total," Qantas chief executive Alan Joyce said.
Under the deal, Qantas Loyalty will provide its marketing, data and customer retention expertise while nib will provide health insurance, risk assessment and underwriting capability.
The deal will involve the pair sharing equally the gross profitability of the health insurance plans. This is unlike typical Qantas frequent flyer partnerships under which the airline simply sells points to credit card issuers and retailers.
Qantas and nib will target a 2 to 3 per cent share of the private health insurance market on a revenue basis in the first five years, equating to as much as $570 million of annual revenue based on current market size of $19 billion.
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