Wearable devices can revolutionize the life insurance industry by empowering the insurer and the insured alike with valuable health data.
FREMONT, CA: Farsighted insurers have long been interested in knowing more about the potential applications of wearable technology, but they have not been fully implemented to date. But the advances in these devices can revolutionize the industry. Read on to know more about how wearables can influence life insurance.
For life insurers, gaining a better understanding of consumers' health and lifestyle is beneficial to develop products and services and set mortality estimates that better reflect the health of policyholders. Along with this, consumers also have the insights they need to take control of their physical and financial well being. Wearable devices can also increase the number of touchpoints with their insureds. These devices offer a steady flow of actionable data points that can be harnessed by insurers and their customers and create more opportunities for interactions during a policy life cycle.
The insights gained from wearable devices can be applied to other insurance functions besides customer engagement. Analyzing lifestyle data, along with underwriting data, can help underwriters better understand health conditions and lifestyle habits that may affect mortality. The granular assessment of mortality risks is allowing insurers to rate applications more precisely and offer more customized plans based on the customer's behavior.
Insurers can use the data obtained as the foundation for activity bones that rewards policyholders who adopt healthier lifestyles with rewards such as premium discounts or incentives to remain healthy throughout the lifecycle of their policies. This can be a win-win for both the insurers and policyholders.
Incorporating information from wearable devices into the life insurance space presents a multitude of opportunities. If more customers and insurers continue to embrace this technology, the future of life insurance will be empowered, and the future will look more promising.