The opportunities for digitally led healthcare innovation in China

1. A New Generation of Digital Health Customers
ALAIN PEDDLE
PING AN HEALTH - DEPUTY GENERAL MANAGER ELECT
DISCOVERY - GENERAL MANAGER RESEARCH AND DEVELOPMENT LAB

2. Owner of the world’s longest-standing
scientific health management program
6 million clients Globally
Largest group high-end health
insurer in China#1
Share of the mid-end & high-
end health insurance market
in China
60%
Largest direct billing hospital
network in China
Largest health insurer in South Africa#1

4. Digital products are disrupting traditional business models
New trends
emerge
Innovative start-
ups create disruptive
business models
Early adopters
start embracing
the new models
Advanced
incumbents
start adapting to the
new model
Mainstream
customers
adopt
Tipping
point
The new normal
Laggard
incumbents die

5. Investment in health related technology, products and start-ups
has grown exponentially
SOURCE: Rock Health
 Investment doubled since
2013
 20% CAGR
 Forecast to surpass $24
billion by 2020
Digital health start-up funding 2014 vs. 2011 - 13
USD billions
0.9
1.4
1.8
2011 2012 2013
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2011 - 2013 2014
2014
$4.1B
$5B
$4B
$3B
$2B
$1B
$0B

6. Healthcare delivery is being disrupted across the value chain
Population management
Telemedicine
Risk selection
Health and Wellness
Digital tech and devices
Drug adherence
Social support mechanisms
Cloud-based EHR
Marketplaces for providers
23 and me

7. How relevant are these potential disruptors to health insurance?
Population management
Post-acute care coordination
 Combine people, technology
and process to reduce re-
admission rates
 Service Vendor to Payors
 Flexible model to cater to
wide variety of patient groups
Drug adherence
Medicine management service
 Take the hassle out of
medication adherence
 Novel pharmacy model
 Improve drug adherence by
as much as 40%
Telemedicine
Telemedicine platform
 Uber mode of healthcare
seemlessly connecting
patients and doctors
 Triage health needs

8. The opportunities for digitally led healthcare innovation in China
20% CAGR
Affluent mid-
market
growth by
2020
Healthcare
spend to
reach ~1
trillion USD by
2020
Source: McKinsey macroeconomic model update. (Apri.2012)
Source; MOH; OECD; Euromonitor; China national and city
statistical year book; Mckinsey analysis
110 billion
USD
investment in
digital
healthcare
technology by
2020
By 2020 every
citizen to
have an
Electronic
Health Record
Source: BCG modelling and analysis
Source: “National Plan for Health Service System”, China State
Council 2015
+15% growth
in active
mobile social
users
(+ 77 million)
China's rate
of diabetes
prevalence is
the highest in
the world.
Source: CNNIC, Tencent, Sina, GSMA Intelligence
Source : Journal of the American Medical Association (JAMA)
September 2013
2012 2020
20%
CAGR
51%
Mass
Affluent
2015
4.1
2010
4.1
2020
> 6 trillion

9. Core Financial Business Non-traditional business
Ping An Group is already investing heavily in non-traditional
financial service models
Online to offline
ecosystem
Food
Entertainment
Housing Transport
Health
Simultaneous development of traditional and non-traditional financial services
Shared platform
Cross and up-selling
InvestmentInsurance Banking

10. Ping An Health roadmap of opportunities
Guide clients when
they seek
healthcare (cost,
quality and a better
customer experience)
Improve the
experience of
people seeking
healthcare in China
Manage costs
through disease
prevention and
disease
management
Develop a
healthcare system
that is more
contained and
efficient
Exploit big data
choices, social
networks, referral
networks, health
records, fraud…
1. Client experience
4. Navigation
3. Develop a closed system2. Manage costs
5. Exploit the data

11. Ping An Health roadmap of opportunities
Guide clients when
they seek
healthcare (cost,
quality and a better
customer experience)
Improve the
experience of
people seeking
healthcare in China
Manage costs
through disease
prevention and
disease
management
Develop a
healthcare system
that is more
contained and
efficient
Exploit big data
choices, social
networks, referral
networks, health
records, fraud…
1. Client experience
4. Navigation
3. Develop a closed system2. Manage costs
5. Exploit the data

12. Key unmet needs
1. Improve the experience of people seeking healthcare in China
What are the key unmet needs and concerns
Access to quality care
Access to information
Child and childbirth related care
Preventive care
Survey question: On a scale of 1 to 5, how satisfied are you with healthcare
provision in the public health system? 1 = “not satisfied at all”, 5 = “very satisfied”
3.0
3.1
3.3
3.3
3.3
3.3
3.4
3.5
Accessibility
Price
Service attitude
Environment
Ethics
Hygienic condition
Treatment safety
Physician’s skill
For Chinese citizens,
access is as much a
concern as cost
Source: 2012 McKinsey patient survey on healthcare services, expenditures and service

13. Access is a major concern
#1
service employees want:
specialist appointment
booking
Source: PAH Health and benefits survey 2015
Client needs Time CostDistance

14. Ping An Good Doctor is the access point addressing the no 1 issue
health queries
per day
>100 000
registered users
> 20 000 000

15. Significant investment in technology and people
Full-time family
doctors
1000
Contracted
doctors
50 000
7 / 24 / 365
+ Consultations
Text |Video | face-to-face
+ Interpretation of reports
+ Follow up phone calls
+ 1000+ health checkup centers
+ 2500+ Partner hospitals

16. Access to specialists
Specialists
5 000 + From 3A hospitals across China
+ Online appointment set-up
+ One click calling

17. Access to medication
+ Online consultation with
pharmacists
+ Delivery within 2 hours in
Shanghai
common drugs
2 000

18. + Expert advice from doctors and
Health Stars
+ Interpretation of health check-
up and other diagnostic reports
+ Personalized push of
customized contents
Expert advice

19. Ping An Health roadmap of opportunities
Guide clients when
they seek
healthcare (cost,
quality and a better
customer experience)
Improve the
experience of
people seeking
healthcare in China
Manage costs
through disease
prevention and
disease
management
Develop a
healthcare system
that is more
contained and
efficient
Exploit big data
choices, social
networks, referral
networks, health
records, fraud…
1. Client experience
4. Navigation
3. Develop a closed system2. Manage costs
5. Exploit the data

20. Disease prevention and disease management
Lifestyle choices can cause disease Chronic disease in China
4
main risk factors
4
main risk factors
60%Of all deaths
worldwide
LEADTO
RESPONSIBLE FOR
1 Currently, 200 000 people die from
smoking-related diseases every year
From 2000 to 2040 Estimated 200%
increase in deaths from
cardiovascular disease
Source; China Ministry of Health research foundation interview 2012
Aging, Health, and Chronic Conditions in China and India: Results from the Multinational Study on Global AGEing and Adult Health (SAGE)1 Paul
Kowal, Sharon Williams, Yong Jiang, Wu Fan, P. Arokiasamy, and Somnath Chatterji. National Academies Press (US); 2012.
In 2010 the number of people with
diabetes is estimated to be more
than 92 million, with another 148
million pre-diabetic

21. Physical activity improves mortality and health
Source: Internal Discovery Analysis Source: Vitality and DHMS member data
Mortality rate q(x) Impact of improvement in physical
activity (Mortality rate)
Relative hospital cost per
patient
1 2 3
-48%
-60%
Active
Inactive
Inactive
-55%
-17%
Inactive Low Medium High
Vitality engagement
Source: Internal Discovery Analysis

22. Physical activity triggers a healthy lifestyle
Did not exercise
Started
exercising
Buy more
HealthyFood
Undertake
Preventative
measures
Undergo
Screenings
Do more online
assessments
Uplift in overall
engagement
+16%
23%
26%
43%
Improvement in points after becoming physically active
79%
Source: Internal Discovery Analysis

23. Get Active Get RewardedAchieve your goals
Device integration allows tracking and rewards

24. Chronic disease management
+ Customized by expert doctors
+ Hundreds of health care plans
+ Daily reminders
+ Effective incentive mechanism

25. Ping An Health roadmap of opportunities
Guide clients when
they seek
healthcare (cost,
quality and a better
customer experience)
Improve the
experience of
people seeking
healthcare in China
Manage costs
through disease
prevention and
disease
management
Develop a
healthcare system
that is more
contained and
efficient
Exploit big data
choices, social
networks, referral
networks, health
records, fraud…
1. Client experience
4. Navigation
3. Develop a closed system2. Manage costs
5. Exploit the data

26. 3. Develop a more contained and efficient healthcare system
Vertical integration through technology
Online to offline
2013 2015-16 2018 2018+2015

27. 4. Guide clients to quality healthcare that’s also cost-effective
Electronic health records
Value
No.ofproviders
Potential impact
of managed
referrals
Impact of guidance & infoDifferences in provider costs

28. 5. Exploit data to reduce costs, improve quality and the customer
experience
Electronic health records Dynamic underwriting
Age
Risk
Traditional
Dynamic
The power of networks

29. Some thoughts and insights along this journey

30. The health insurance company of 2020
Selecting the
best clients
Access to
quality care
Managing
choice of
providers
Keeping
people
healthy
Fraud
management
Aiding choice
Convenient
and seamless
experience
Reducing out-
of-pocket
costs
Enabling
personal
health
management
COMBINETECHNOLOGYANDDATA

31. Some thoughts and insights along this journey
1. Different skills, people and focus
2. Fail fast, learn quickly
3. Capture value everywhere
4. Your disruptive competitor is out there
5. New partnerships…

32. END