Thanks to falling prices and miniaturization of microchips, consumer wearables such as Nike’s FuelBand, Adidas’s miCoach, and Fitbit are rapidly becoming commonplace. These devices track exercise and physical activity in ways that allow users to easily gain insight into their performance—often in real time.
This gives them information they can use to make decisions about picking up the pace, going for another lap, or pushing for a personal best. Herein lies the opportunity to reward life and health insurance customers for healthy behavior.
Some insurers are already offering incentives linked to the user’s health insurance, or are rewarding users with points that can be used for branded goods or services. Life insurers could possibly even harness this information to assess an applicant’s physical activity level and general health when pricing premiums.
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