Life insurers need to become organisations that do more than simply pay claims, according to AIA Group CEO Mark Tucker.

“The role of the life insurance industry is continuing to evolve,” he told the AIA Vitality Summit in Sydney last week.

“Importantly, wellness as a category is a major change in the industry. The concept of ‘when you die, we pay’ now needs to change to ‘how we help you live longer lives’.”

Mr Tucker says AIA’s Vitality wellness program has delivered benefits for the insurer and its clients.

“The way we have thought about Vitality is a shared-value model,” he said. “It is a win for the consumer, win for society and a win for the corporate.”

He says a wellness programs mean consumers are less susceptible to illness, leading to more productivity at work.

“For government it means less healthcare costs, so it is a win-win-win model.”

South African insurer Discovery created the Vitality program, and CEO Adrian Gore told the summit consumers are taking to it well.

The scheme has more than 3 million members in countries including Australia.

“The evidence shows people are engaging with the Vitality program,” he said. “We have found 90% of wellbeing is based on people making simple behaviour choices, but the question is, why don’t people make these choices?”

Mr Gore says the traditional healthcare payment model has involved government and insurers.

With rising costs, people must be encouraged to make healthier lifestyle choices.

“We use incentives in health through getting people to live longer,” he said. “It transfers our industry from monetary to a wellbeing cycle.”

Mr Tucker says AIA can help the socioeconomic development of Asia.

“An insurance company has a unique ability,” he said. “We have the ability to invest by looking into a 25 to 40-year-old future.”

He says this will ease the burden of healthcare costs on governments, which will benefit all of society. AIA has 60 million customers in Asia, so it can make an impact.

Mr Gore expects a change of focus in the life insurance industry.

“I am hoping insurance transforms from being a transaction industry to being one of behaviour change,” he said. “There is an opportunity for the industry to make people healthier and I hope all insurers will use that incentive to drive change.”