Insurtech startup Wellx strives to incentivise clients for being wholesome

Conventionally, insurance coverage is perceived as a product for a wet day. Buying insurance coverage is mostly accompanied by the hope that one stays wholesome and doesn’t ever have to make use of it.
What if insurance coverage advantages don’t should essentially be linked to illness? What if you’re rewarded for staying wholesome? That’s what Wellx goals to do.
UAE-based Wellx is an insurtech platform based by Javed Akberali and Vaibhav Kashyap final 12 months with the aim of offering insurance coverage that concentrate on wellness-backed prevention.
“As a substitute of ready so that you can fall sick, we view prevention as a option to construct and assist more healthy, happier and resilient communities,” says Javed.
Wellx goals to realign the idea of insurance coverage incentives utilizing numerous well being parameters.
“We use metrics corresponding to steps from Fitbit, sleep cycle from Whoop, meditation minutes from Calm, glucose ranges from Extremely Human, and gamify that to reward clients,” explains Vaibhav.
Clients are rewarded with cashbacks upon the completion of their well being objectives. At current, the startup’s plans are provided to people, households, and companies.
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Wellness ecosystem
Wellx has partnered with numerous firms to reward clients for being wholesome. It has partnered with insurance coverage firms corresponding to Salama and Dubai Nationwide Insurance coverage and healthtech corporations corresponding to Fitbit, Whoop, Ultrahuman, Countd, Steppi, and Kayam.
The startup presents a spread of insurance coverage with completely different advantages.
Vaibhav explains, “As an example, Upon buying a Wellx Ultrahuman plan, the shopper can avail themselves of all the advantages of metabolic monitoring that Ultrahuman supplies together with complete insurance coverage. Equally, for Whoop and Fitbit, the shopper can avail of all the advantages supplied by the tracker.”
The shoppers can earn as much as two months of their premium as cashback upon the completion of their well being objectives.
To achieve the primary stage of cashback, a minimal aim must be achieved. “As clients select tougher objectives, they get rewarded with increased ranges of cashback,” explains Vaibhav, who’d labored within the area of insurance coverage previous to beginning up.
Wellx additionally presents merchandise corresponding to Wellx, Wellx plus, and Wellx professional to offer entry to hospitals corresponding to Mediclinic and American Hospital.
“The important thing distinction [between these plans] is the quantity clients can avail as cashback—AED 75 ($20.42), AED 125 ($34.03) and AED 200 ($54.45) month-to-month, respectively. The opposite distinction is the entry to our community of hospitals and clinics,” says Javed, who had been within the banking sector for round 16 years earlier than he started scouting for alternatives within the insurance coverage house.
Javed met Vaibhav via Vaibhav’s father, whom he was acquainted with.
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Enterprise mannequin
Wellx is accessible as a software-as-a-service (SaaS) software, through iOS and Android. Insurers should pay for it on a per-member, per-annum foundation. The app is at present obtainable in a closed-user mode—i.e., solely members of Wellx plans have entry to it.
The startup makes a margin on each Wellx insurance coverage product bought. Its income streams embody insurance policies bought by the insurer and insurance policies bought by Wellx.
“Whether or not we promote it straight or whether or not one other insurance coverage firm or dealer sells it, we get a price,” says Vaibhav.
He elaborates, “Each methods, we cost a price to maintain clients engaged in wellness all year long and function a pool account that’s funded by all the worth chain of the insurer, third social gathering administrator, dealer, and reinsurer to ship rewards.”
One other income is the Wellx market which presents well-being merchandise, wearables, psychological well being classes, health club memberships, private coaching, and diet teaching.
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Development within the Center East
Insurtech is a rising phase within the Center East and North Africa (MENA) area, particularly within the Gulf Cooperation Council (GCC). It’s anticipated to develop at a CAGR of over 6% between 2019 and 2028, as per a report by Mordor Intelligence.
UAE is rising as a frontrunner within the phase within the GCC, pushed by digital maturity, a price-driven mindset, and an curiosity in the direction of collaborating with insurtech corporations.
“Success tales from markets corresponding to India and Southeast Asia have pushed investor curiosity within the sector, particularly post-COVID-19,” says Akshay Jayaprakasan, Affiliate Associate at RedSeer.
Final 12 months, in December, Wellx was among the many 15 startups chosen for batch 4 of the Sanabil 500 MENA Seed Accelerator Program. It raised pre-seed funding of an undisclosed quantity. At current, the startup is in the course of its seed spherical.
Globally, Wellx competes with UK-based YuLife, Latin America-based Betterfly, and India-based Growfitter and Aditya Birla Wellness.
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Future plans
Wellx, which is headquartered on the Dubai Worldwide Monetary Centre, plans so as to add life insurance coverage to its product portfolio by the tip of the primary quarter of 2023. The corporate can also be planning to launch its merchandise in Saudi Arabia by the center of this 12 months.
Javed says, “2023 is concerning the area. We wish to cowl the GCC between Saudi, Bahrain, and Oman, in addition to North Africa.”
The startup can also be eyeing entry into East Africa by early 2024.
“It comes all the way down to the power to export innovation, and the area is now turning into a severe contender for being that supply of export,” says Javed.
Wellx is planning to launch Model 2 of its SaaS software in Q1 this 12 months.
“It can gamify the insurance coverage expertise and permit customers to construct avatars, set their well being objectives, and monitor and monitor their progress. They’ll additionally create neighborhood challenges and get rewarded for successful them via their insurer, firm or neighborhood,” elaborates Vaibhav.