How Wearables are Making Customers’ Lives Better, Making Insurance More Appealing

Customers today are craving a more personal approach from the companies they buy from. When insurers encourage customers to improve their health by offering wearables, they kick-start a relationship rooted in empathy and caring. This only serves to enhance the reputation of the insurance industry and help build loyalty with their customers. 

According to a report from McKinsey & Company, “In the insurance industry today, customer trust can be low and the technologies dated. But customers want a digital experience tailored to their needs. Insurtechs offer new value propositions that generate customer engagement.” 


Wearable devices can do so much more than provide consumers with calories burned or their resting heart rate-- the information collected by devices with Personal Activity Intelligence (PAI) can help people get healthier and save lives. 


Wearable devices, such as watches, monitor and record heart rate data-- both resting and when active. This data provides an accurate picture of a person’s physical activity and overall health based on their heart rate. Devices with Personal Activity Intelligence (PAI) can also measure CRF, or VO2 max, which is considered a key clinical vital sign by the American Heart Association (AHA). 


Being able to view a graph of one’s heart rate throughout the day and see when it’s too high, or perhaps too low, is valuable and potentially life-saving information that people can access without going to a doctor’s office. For unfit people, seeing their resting heart rate could be a wake-up call to get heart healthy in order to extend their lives. 


In addition, by offering a free wearable insurers can reach populations that might otherwise have not purchased a wearable. Maybe the customer didn’t see the value or didn’t want to spend the money. But once they have that free wearable *and* incentives to use it, new, long-term customers will be reached. 


The way insurance companies interact with customers is being redefined, too. By offering wearables, insurers have a reason to interact more frequently with customers and build a relationship. Insurers could reach out to customers to check-in on their health, ask about their satisfaction with their policy-- or if they have questions about the wearable, or offer health advice via newsletters and social media posts. 


For insurers, providing customers with wearable devices will help actuaries better assess risk profiles and create better policies when they’re able to access more accurate consumer health data. 


Wearables are disrupting this age-old industry-- providing real-time data for insurers that is more accurate than data from self-reported questionnaires. Rather than asking people to fill-out lengthy self-assessments, insurers can give customers a free wearable device, which will provide accurate data to the insurer and make the experience less time-consuming for the consumer. 


Technology will continue to impact the way insurance policies are developed and packaged for consumers. Digital technologies are already make major waves in the insurance industry. We encourage insurers to continue to look ahead and consider how digital solutions can be utilized to enhance your company’s reach and partnerships. 


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Customers today are craving a more personal approach from the companies they buy from. When insurers encourage customers to improve their health by offering wearables, they kick-start a relationship rooted in empathy and caring.
Data from the HUNT study was used to develop and validate PAI as an effective tool in prescribing personalized amounts of life-extending physical activity. It was determined that if a person achieved and maintained 100 weekly PAI, they would lower their risk of cardiovascular disease