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4 Ways Wearable Tech Is Changing the Landscape of Insurance and Healthcare Industries

Wearable technology is offering key insights to health insurers, thereby helping them to offer customised policies at competitive rates.

  • 10 Jan 2018
  • 2 min read
  • 46 views

 Health insurers and caregivers are benefitting a lot from wearable technology.

When the first Bluetooth headset was sold in 2000, very few would have imagined the ground-breaking impact wearable technology would have in the years to come. As the number of connected wearable devices all over the world is expected to jump from 325 million in 2016 to 830 million by 2020, every industry is banking on this technology to gain useful data insights on their customers.

Wearable technology is proving to be a game-changer for the insurance and healthcare industry by offering them access to critical data. Let’s see four ways through which this technology is changing the landscape for insurers and healthcare providers.

Prepare Competitive Insurance Rates

Formulating competitive insurance rates require an in-depth knowledge about health conditions of consumers. Wearable technology gives insurers an idea about the physical health of an individual. It tells them about a person’s physical activities, heart rate, etc.

Such information aids insurers in formulating competitive insurance rates. For caregivers, such information leads to better consultation.

Rewards for Those Maintaining a Healthy Lifestyle

Recently, insurance companies have started rewarding those who lead a healthy lifestyle. With the information obtained through wearable tech devices, insurers are offering perks not only in the form of lowering premiums, but also through prizes, gym reimbursements, etc.

They are helping customers set milestones and are aptly rewarding them when these are met. Such rewards act as an encouragement for consumers to adopt healthy lifestyle habits creating a win-win situation for both the parties.

Crafting Personalised Insurance Plans

The changing preference of customers has made it imperative for insurers to come out with personalised insurance plans. With key metrics being captured by wearable technology, insurers can come out with personalised insurance plans.

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These plans are tailored according to specific needs of an individual. For instance, if the insurer finds data that reflects high chances of a customer suffering from a critical illness, he/she can be offered a product insuring against the specific ailment. At the same time, caregivers can caution people in case they discover any troublesome fact from the info received.

Leads to Better Underwriting Process

Underwriting is an important part of the insurance eco-system. The premium, sum assured, etc. depends on the observations made by the underwriter. Prior to the arrival of wearable technology, underwriters didn't know about the lifestyle habits of a person. Hence, risk assessment was a difficult task.

However, information available from wearable technology helps underwriters in better risk assessment. They can also use the info to help consumers make an informed choice. Insights from wearable technology would be extremely valuable for those in health insurance to expedite claim settlement, curb fraud and offer a seamless customer experience.

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