The airline giant Qantas Airways Limited (ASX:QAN) and the insurance provider nib Holdings Limited (ASX:NIB) have announced a new health insurance program for 11 million Qantas frequent flyers.
The new program ‘Qantas Assure’ is aimed to provide a more rewarding health insurance experience for Qantas’s frequent flyers. The airline company will also offer Qantas points for activating the service when it launches in the first half of 2016. It will feature travel insurance under the same program, which is already being offered to over half a million customers a year.
According to Qantas CEO, Alan Joyce: ”Qantas loyalty has shown it knows how to attract, reward and retain members of their choice of airline, credit card or retailer. By partnering with nib, we believe there is a huge opportunity to do the same thing in the 19 billion private health insurance market and drive significant growth for the loyalty business.”
Nib will provide its health insurance, risk assessment and underwriting services while Qantas Loyalty will provide marketing, data and customer retention strategies. Revenue earned will be shared equally between both the parties. The program is aimed to achieve a 2-3 per cent share of the Australian private insurance market on a revenue basis in its first five years.
It is worth noting that Qantas Assure will not only earn points for its participants, this program will also reward its participants for being more active. The policy members can download a wellness app that syncs with popular forms of wearable technology and will log the number of steps taken in a day. This number will be deposited as Qantas Points which can be used with over 400 partners for flights, shopping or towards the existing health insurance premium.
According to the CEO of Qantas Loyalty, Lesley Grant: ” The idea behind Qantas Assure will create a very different relationship between customers and their health insurance. It’s deliberately different and we think it’s very exciting. When members combine the Qantas points they can earn from literally walking around the block with all the other ways to earn, it becomes a very powerful proposition.”