Aetna International's MD Derek Goldberg talks of challenges in Asia's insurance industry

He also reveals three key goals for the company.

As the managing director for Southeast Asia at Aetna International, Derek Goldberg serves as chief executive of Aetna Insurance (Singapore), chief executive of Aetna Insurance Company Limited Singapore Branch, and president commissioner of Aetna Global Benefits Indonesia. He is responsible for developing Aetna’s business throughout the Southeast Asia and Hong Kong region.

Aetna International bagged the New Insurance Product of the Year - Singapore award at the inaugural Insurance Asia Awards held this year. In an exclusive interview with Asian Banking and Finance, Goldberg shares his thoughts on Asia's insurance landscape.

ABF: What are the most pertinent trends and challenges you see in Asia’s insurance industry?
The rising cost of claims and over-utilization of medical treatment are significant challenges for health insurers in the region at present. Coupled with the increased emphasis that regulators are placing on market stability and integrity, insurers will need to look to innovative solutions to build a sustainable future.

We can see a good example of a recent challenge to the status quo in the industry in Singapore. In response to global market and supervisory developments, the Monetary Authority of Singapore (MAS) is making significant enhancements to its insurance regulatory framework which has led to proposed amendments to the Insurance Act of 2012. Whilst strengthening its regulatory framework, these changes are also designed to cement Singapore’s position as one of the world’s leading financial markets.

The increase in virtual healthcare is another interesting trend, with increasing demand for digital technology to deliver healthcare at the click of a button. This is of particular interest for Singapore and other Asian markets, due to the availability and extensive use of technology across the region, as well as the need to meet the challenges of access to care for a rapidly developing and demanding population.

ABF: What three goals are you focused on?
We are focused on growth, customer experience and employee development.

Our acquisition and subsequent integration of Interglobal in 2014 significantly expanded Aetna’s global presence and brought valuable service expertise to the business, which gave us a solid foundation to launch our new award-winning products in Asia. We firmly believe that we are now in a strong position for continued growth in the region.

To maintain profitability, we are focused on maintaining a careful balance between managing claims costs, whilst working to ensure that our members receive the best possible care. For example, we take the time and effort to understand the context of each customer’s claim to avoid unnecessary procedures.

To give one example, a patient in Dubai had a history of neck pain with osteoporosis. The treating doctor recommended an extensive invasive surgery at an estimated cost of US $80,000. Aetna’s medical team intervened early and arranged for the patient to be transferred to the United Kingdom to have a simpler, but more appropriate surgery performed. The procedure was a success, was less invasive for the patient and was carried out at a significantly lower cost.

Our people are our greatest asset. Our goal is to widen and deepen the skill sets of our colleagues in the region, so that we can deliver an unrivalled set of care solutions to our customers - and act as health care experts, rather than insurance underwriters.

Every employee is provided with live training and access to nearly 7,000 professional development courses in our Aetna Learning Centre. We have recorded a tremendous 600 percent increase in the number of employees attending a live training program in Southeast Asia over the past two years, which has had a significant impact on our staff retention rate.

ABF: What are your key business philosophies?
I believe that people form the core of our business. So my primary role is to focus on the team we have in the region and to build an environment in which they can grow and provide our customers with the best possible healthcare. It has been said before, but I strongly believe that our customers should be at the centre of all our thinking. We ignore our customers at our peril and above all, we must be prepared to listen.

ABF: What previous positions prepared you for this role and how?
I have spent my entire career in the international healthcare business. I have extensive experience in several different aspects of the business, from customer service and claims handling, to account management and marketing.

Starting my career at the entry level and working my way up through a variety of functional areas has given me an holistic view of how the business works, as well as an innate understanding of how our internal actions impact our external customers. I think this played a significant part in preparing me for a leadership role. I also believe that we should never stop learning, which is particularly pertinent in this region, as Asia is such a rapidly changing and dynamic region.

ABF: What are your thoughts on your recent win at the Insurance Asia Awards?
We are delighted to have been awarded “New Insurance Product of the Year”. Our goal in designing the Aetna Pioneer and Summit products was to break new ground in the market to better meet our customers’ needs in the Asia Pacific region. This award is evidence that we’re more than on the right track.