January 19, 2023

Federico Spagnoli: Prudential and Embedded Health

44 minutes

On this episode of the Scouting For Growth podcast, Sabine VdL talks to Federico Spagnoli, at the time President and Head of Emerging Markets Ecosystems for Prudential Financial LATAM, now Vice President of International Total Wellness Solutions.

Federico is well known for his work launching Vitality in South America and providing health services to over 1.5 million South Americans, who can today download an App from their mobile device to get access to a multitude of health services.

During this podcast, Sabine and Federico evaluate 1) Federico’s vision about enhancing people’s physical, mental, and financial wellness, 2) where the world of health insurance is going regarding protection and prevention, 3) relevant strategic distribution approaches by augmenting the broker channel, and 3) tips for those interested in monetization models.

KEY TAKEAWAYS

I joined Prudential 6 years ago doing an executive program with SAID within Oxford University focusing on disruption and innovation. Part of the theme of my paper was related to disruption in the insurance industry because we haven’t seen this in the industry in many years. When I started focusing on the critical driver affecting our customers. I realized there were a lot of opportunities there for us to start thinking very differently about how we approach business today.

These past six years have been the first time I’ve worked in the life insurance industry. I was asked why life and health insurance companies aren’t doing more to prevent conditions and situations that eventually will become a claim, like high cholesterol, which – in some instances – include a pill that can reduce mortality rates by 50%. That led me to look at the aging population, which, along with global warming, is one of the biggest challenges we’re facing as a society. We need to look at the ability to retire comfortably and the ability to afford rising healthcare costs. This made me think about a lot of new technologies and data capabilities that are coming to market that life insurers could use to start preventing, anticipating, and mitigating bad conditions.

Mortality risk is not top of mind for customers because today, we live longer. The problem we face today concerns aging populations and how to reduce the risk of being unhealthy through behavior change. Physical, mental, and financial wellness is the ability to understand your emotions around money and develop healthy feelings and a personal literacy around money and wellness. Physical, mental, and financial wellness topics also encompass the tools and strategies that help you feel secure and in control of your personal life.

The insurer can engage directly with the customer through the SuperApp, where behavioral economics and gamification allow for the insurer to influence the customer’s behavior by providing annual physical checks and rewards through coins, integrated into a marketplace with choices for rewards, and continuously bringing fresh and exciting content to the viewer.

BEST MOMENTS

‘If you follow a customer-centric approach, you can't view customers with one lens. Not being able to afford healthcare services could result in mental health issues because one has anxieties, which also affect one's physical health -- all generated by limited financial means. We have to look at them all together and provide a single integrated solution.’

‘We’re now shifting from life insurance protection to lifetime protection.’

‘New generations are thinking more about global warming, social impact, financial inclusion, and a more balanced lifestyle. In insurance, we are already connecting with these customer groups over a long period of time because of the nature of the insurance that we sell. We can start introducing several solutions as part of a platform that can address and be much more relevant to our customer’s needs and behaviors and influence them.’

‘Customers that are using the Prudential platform provide a Net Promoter score that is twice higher than those customers that don’t use the platform. The highest level of satisfaction has a direct impact on renewal rates, and platinum customers show higher life expectancy and lower claims ratios.’

ABOUT THE GUEST

Federico Spagnoli is passionate about Ecosystem/Strategy and Innovation. General and Life Insurance professional with international experience. Expertise in re-underwriting insurance portfolios, strategic planning, M&A, and business development.

Over six years in Prudential Financial. PII Regional President of Argentina, Mexico, Chile, and Peru (through the JV with ILC/Habitat AFP). Direct responsibility for Prudential Seguros Argentina and Prudential Seguros México.

Responsible for managing the PII's relationship with AFP Habitat and acting as Europe - Latin America head of strategic business development.

Member of the Board of Directors of Prudential Seguros Mexico and AFP Habitat

About Prudential Financial:

Prudential Financial (NYSE:PRU) was founded on the belief that financial security should be within reach for everyone. For over 140 years, Prudential has helped our customers reach their potential and tackle life's challenges for now and future generations to come. Today, the group is one of the world’s largest financial services institutions, offering individual and institutional clients a wide array of financial products and services. With operations in the United States, Asia, Europe, and Latin America, Prudential Financial is known for delivering on its promises to its customers and is recognized as a trusted brand and one of the world’s most admired companies.

ABOUT THE HOST

Sabine VanderLinden is a corporate strategist turned entrepreneur and the CEO of Alchemy Crew Ventures. She leads venture-client labs that help Fortune 500 companies adopt and scale cutting-edge technologies from global tech ventures. A builder of accelerators, investor, and co-editor of the bestseller The INSURTECH Book, Sabine is known for asking the uncomfortable questions—about AI governance, risk, and trust. On Scouting for Growth, she decodes how real growth happens—where capital, collaboration, and courage meet.

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