AIA Group has created a new pan-Asian health InsurTech venture called “Amplify Health”, encompassing a joint venture with Discovery Group for Asia, excluding mainland China, Hong Kong and Macau. This joint venture will be 75% owned by AIA and 25% owned by Discovery, AIA said in a statement.
In addition, AIA will create a separate entity for Mainland China, Hong Kong and Macao for the Health InsurTech business which it will wholly own. (Discovery has a stake in a joint venture, Ping An Health Insurance, with Ping An Group in China.)
As a healthcare InsurTech company, Amplify Health will not take on underwriting risk on its balance sheet and no regulatory capital will be required directly as a result. AIA will fund Discovery’s growth capital share up to $200 million over the first 10 years and will make certain conditional payments limited to the first 10 years of operation based on local business delivery and performance results. AIA.
Amplify Health will deploy a range of health technology assets, proprietary data analytics and extensive health expertise to market-leading and fast-growing AIA companies in the region and other major industry players of health. This will become a key competitive advantage for AIA, which will help drive new business value and deliver financial benefits such as improved claims performance and reduced operational costs. Additionally, Amplify Health will unlock significant new growth opportunities through the provision of its health technology assets and services to third-party customers.
The company should produce the following results:
Individuals will have better access to the right providers at the right price with better health outcomes and empowerment through behavior change programs.
Payers and businesses will have access to better health and wellness insurance products, improved claims quality, advanced risk management capabilities and reduced administrative costs.
Healthcare providers will transform patient experience and satisfaction through world-class digital services and insights leading to better decision-making, better alignment with payers, and better medical outcomes.
Pharmaceutical and MedTech companies will improve clinical programs with enriched real-world data and advanced digital tools, leading to lower treatment costs and new therapies.
Amplify Health brings together the best of both partners by combining Discovery’s proven global health technology, intellectual property (IP) and healthcare expertise with the AIA brand, its unrivaled distribution platform and decades of well-established execution capabilities across Asia.
Through a set of shared values and goals, Discovery and AIA have developed a strong working relationship since the launch of the AIA Vitality program in 2013. The success of this partnership is reflected in the development of products and capabilities, which have been expanded across 10 AIA markets to date. This capability will form a powerful foundation for Amplify Health, through the integration of wellness capabilities.
As part of the agreement and subject to regulatory approval, Amplify Health will be assigned ownership of Discovery Health’s intellectual property and its full suite of technology, process and analytics assets for the Asian region. , including the systems and capabilities behind the existing AIA Vitality wellness program, which will be transferred from Discovery to a separate, wholly owned AIA entity within Amplify Health. This entity will also be assigned ownership of Discovery’s Vitality IP for the region, excluding Mainland China, Hong Kong, Macau and Japan, given Discovery’s existing partnerships in these markets.
Mr. Lee Yuan Siong, CEO and Chairman of AIA Group, said, “As we look to the future, we see an urgent need for better, simpler and more affordable healthcare, and a growing protection gap. for the region’s growing population. These factors, combined with the fundamental drivers of growth in Asia, present an extraordinary opportunity. Amplify Health is the natural next step in our journey from payer to partner, enabling us to play a leading role in transforming the development and delivery of healthcare in Asia. Discovery is a partner equally passionate about creating value for all stakeholders. »