Genoplan is a genetic testing company backed by big-name venture funds such as Softbank Venture Asia, Samsung Venture Investment, and GC Pharma. Asia Advisers Network finds out how it has helped its partners in the insurance industry improve sales conversion rate by as much as 600%.
Founded in 2014 by Brian Byungkyu Kang, born in South Korea and educated in the US, Genoplan empowers individuals with personalised reports for a better understanding of their genetic propensity to make smarter lifestyle decisions.
Since then, the start-up has grown tremendously with a funding of over US$20 million, laboratories in South Korea, Japan, and a regional office in Singapore.
Find out how simple it is to use the genetic test kit here.
Proven track record with Korean insurers
In Korea, where it is headquartered, it has a proven track record of helping its established insurance partners improve sales. These partners include MetLife Korea, Orange Life (formerly ING Insurance), and Bomapp.
As an example, the effectiveness of its model can be seen from the results of three of the financial advisory firms it has worked with. Sales conversion rates improved from +-10% before partnering Genoplan to a range of 40% to 60% after leveraging on its DNA kits – improvements of up to 600%!
The results are remarkable, given that the insurance landscape in Korea is highly saturated.
A 360-degree approach for clients
So how does genetic testing go hand-in-hand with insurance?
One of the ways insurers typically work with Genoplan is to bundle the DNA test kits and health analytics platform as part of their solution.
It is a 360-degree approach for clients through the combination of financial protection against unforeseen situations and the preventive measures clients can take as a result of understanding their genetic propensity better.
The bundled solution is more appealing to customers as it shows them that they and their health are the centre of focus, and not the pushing of a product sale.
For financial advisers and agents, the DNA test kits could be used as a free gift to drive engagement and create opportunities to meet with their prospects and existing customers. With greater awareness and discussion around health with the report in hand, it provides a greater push for customers to overcome inertia to get the necessary insurance covers.
Other than partnering insurance companies, it also works directly with financial advisers and insurance agents in Korea. “And we are more than happy to work with any individual financial adviser or insurance agent in Singapore who is interested in our solutions,” said Genoplan.
Naturally, one of the frequently asked questions from insurers is concerning anti-selection. “If prospects or customers buy insurance based on their results, wouldn’t it create an environment of many high-risk customers buying policies from the insurer?”
Genoplan said the first thing to understand is that the genetic analysis results is a risk prediction and not a health screening of current conditions. Whether the results show high or low scores, it does not mean the person is guaranteed to have or not have a particular disease or illness.
Everyone has some health risks – a combinational result of genetic and environmental factors – whether they purchase insurance with or without doing the DNA test. The test actually motivates a person to take action on cushioning or preventing any potential risk.
A research conducted by Swiss Re Institute, “Can life insurance pass the genetic test?”, demonstrates this, it said. According to the survey, 42% of people take positive action prompted by their genetic test results. Some examples of these actions are the use of vitamins or herbal supplements, change in diet and nutrition, intensified physical workout and exercise, and change in or use of new medication.
Genetic tests motivate people to be healthier, said Genoplan. A win-win for both customers and insurers.