Technology has been forcing several business industries to radically change during the last few years. Some have been able to keep up, and some others haven’t. Soon we’ll know if the insurance business is ready to go under a significant shift, at least regarding life insurance. This is because today, thanks to John Hancock, fitness tracking and life insurance might have changed the insurance game as we know it.
By offering incentives such as discounts and lower premiums, Hancock wants to motivate policyholders to live longer and healthier lives. John Hancock Insurance Vitality program will use a wellness app for policyholders to set and track their health goals and achieve different rewards. This means that life insurance current model might be on the verge of complete change.
Fitness Tracking and Life Insurance: How Does It Work
Interactive Insurance is a concept that has been around since 2015. It has already gained popularity in South Africa and Britain and is now seeing a growing interest in the US. The way fitness tracking and life insurance work is quite simple, in theory.
By wearing logging devices, policyholders will be able to set fitness goals and track their progress. Depending on their progress, they would be eligible for lower insurance premiums, as well as discounts or gift cards. They will also have the option to receive a rent-free device if they are being able to achieve their fitness goals.
What Are the Advantages of Fitness Tracking?
This revolutionary way of selling life insurance has proven to bring several advantages. John Hancock started offering fitness tracking and life insurance policies around 2015.
According to Marianne Harrison, President, and CEO of John Hancock, Vitality has improved their policyholders’ health. She says that their policyholders have doubled the number of steps that the average American takes. She also mentions that they have also logged more than 3 million healthy activities, such as swimming, jogging, and biking.
The Insurance company also wins in this situation, though. Simply put, healthier policyholders will pay premiums for longer periods, as well as delay the time it’ll take for the insurance to pay for a claim.
What Does This Mean for the Rest of Insurance Companies?
Thanks to the implementation of fitness tracking and life insurance, the rest of the insurance companies will have to find other ways to provide policyholders with new incentives. And we’re not talking about the lower premiums, discounts, or gift cards. Being able to contribute to the country’s issue of public health is an opportunity that the insurance industry should not waste.
Marianne Harrison compares this new life insurance model to the way car insurance works. Most insurance companies offer their policyholders safe-driving courses in exchange for lower premiums. However, the fact that John Hancock is using wellness tracking devices brings new opportunities to the insurance industry altogether. We need to start discussing what will come next. Maybe the industry’s next move will involve artificial intelligence systems to asses and monitor policyholders?
