👉 Background: Medibank not-for-profit-turned-for-profit health insurer that listed on the ASX in 2014. But many people now know Medibank for its major cyberattack that compromised the data of 9.8 million customers.

👉 What happened: While Medibank is back to business as usual, it seems to be still somewhat tainted by this debacle. In fact, Medibank missed its net profit guidance by $3 million because its new members, aka 'policy holders', grew by just 0.2%.

👉 What else: But Medibank was celebrating the $10 million it gave away through its rewards program. That's the Live Better wellness program that pays customers for tracking their healthy actions.

What's the key learning?

💡Wellness programs are rewriting the rules of healthcare economics.

💡Insurers traditionally have based their insurance policy pricing on age, gender, and pre-existing conditions. But, they haven't been able to treat individuals differently based on their level of exercise (...or lack thereof). But these reward programs are providing a way for insurers to offer discounts to members who are staying healthy.

💡And it makes sense for insurers. Members who are actively walking are reducing their chances of getting unwell or mortality. So the more active and healthy a member is, the less likely are they to claim on their health insurance.

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