Bloom partnered with Momentum Metropolitan to launch Health4Me in the South African Private Health Insurance Industry.
In March 2020, Bloom Financial Services successfully launched Health4Me, a private health insurance product tailored for the South African retail market. This case study explores the strategic approach, challenges, and results of this product launch.
Background
The South African healthcare industry is characterised by a dual system: a well-developed private healthcare sector and a public system facing resource constraints. Many individuals remain uninsured due to high costs, creating a demand for affordable, accessible private health insurance solutions.
Objective
The primary goal of launching Health4Me was to bridge the gap between expensive comprehensive medical aid schemes and the lack of coverage among lower- to middle-income earners. The product aims to provide affordable, flexible, and accessible healthcare coverage tailored to individuals and families.
Strategy & Execution
1. Market Research & Product Design
Bloom conducted in-depth research on consumer pain points in the retail health insurance space, looking at where existing providers fell short in terms of product offering, service provider networks, pricing, policy management, and customer support.
Bloom then worked with Momentum in co-branding Health4Me, a cost-effective, benefit-rich product covering essential healthcare services such as GP visits, hospitalisation, chronic medication, and preventative care.
2. Regulatory Compliance & Partnerships
The product had already been registered with the Council for Medical Schemes (CMS) and Financial Sector Conduct Authority (FSCA) and so it was certain that the product met the required regulations. Momentum had also already partnered with key healthcare service providers to create a robust network for policyholders.
Bloom was charged with developing a go-to-market strategy to deliver this excellent product to the retail sector.
3. Go-to-Market Strategy
Bloom developed a multi-channel marketing campaign leveraging various digital platforms such as Google AdWords, social media, SMS marketing, and using affiliate marketing companies for lead generation. The digital campaigns were designed to drive traffic to Bloom’s website, provide information on the product offerings available, and provide calls-to-action for customers to request quotes.
4. Technology & Customer Experience
- Bloom set up a call centre to handle customer acquisition and back-office functions.
- APIs were set up between Bloom’s website and dialer software, to allow instantaneous call-backs to interested customers, along with information on where the lead was generated and what webpage they were on when the quote was requested.
5. Sales & Distribution
- Utilised a digital distribution model, leveraging various digital platforms such as Google AdWords, social media, SMS marketing, and using affiliate marketing companies for lead generation, which were closed telephonically.
- Offered tailored packages with a “building block” approach, to provide more flexible and cost- effective options to a larger portion of the market.
6. Support and Binder Functions
In addition to marketing and sales, Bloom handled the following:
- Policy fulfilment
- Quality assurance on all sales and support functions
- Collection of premiums
- Policy management
- Customer support
- Policy renewal
- Retentions and cancelations
Challenges & Solutions
- Market Awareness & Trust: Overcoming scepticism about affordability and coverage through education-driven marketing and customer testimonials.
- Regulatory Hurdles: Worked closely with regulators to ensure full compliance and maintain transparency.
- Pricing Sensitivity: Structured the pricing model with tiered options to suit different income groups.
Results & Impact
- Customer Acquisition: Within the first year, Health4Me attracted 10,000+ policyholders, demonstrating strong market demand. In the 5 years from March 2020, 45,000+ policyholders have been sold by Bloom.
- Customer Satisfaction: Achieved high retention rates and positive customer feedback, with Bloom being rate the #1 company in the Insurance sector on HelloPeter. Many users cite excellent service, affordability, and ease of access as key benefits.
- Business Growth: Strengthened Bloom’s footprint in the South African private health insurance market, positioning the company as an innovator in affordable healthcare solutions.
The launch of Health4Me successfully addressed a critical gap in South Africa’s private health insurance industry. By combining affordability, accessibility, and technology-driven convenience, the product has empowered thousands of individuals and families with quality healthcare coverage. Bloom continues to refine and expand its offerings, reinforcing its commitment to innovative, customer-centric solutions in the insurance sector.