Step aside traditional premiums. Insurtech is entering into the world of wearables, with exciting possibilities for “pay-as-you-live” insurance. Yes, a more predictable yet affordable insurance designed for the policyholders.
Imagine a world where your health insurance adjusts based on your daily activity. Wear a fitness tracker? Get rewarded for those morning jogs with a discount! This is the future insurtech companies are building with wearable technology.
Here’s how it works:
- Track Your Habits: Wearable devices like smartwatches monitor your activity levels, sleep patterns, and even stress to keep a track of your routine health regime.
- Data Drives Discounts: The data collected can be used to create personalized insurance plans. The healthier you are, the lower your premiums could be.
- Motivation with Rewards: Some insurtech companies might even incentivize healthy habits. Reach your daily step goal and earn points towards lower premiums or other rewards.
This “pay-as-you-live” approach could not only save you money, but also motivate you to live a healthier lifestyle. However, some concerns remain unnoticed:
- Privacy Issues: Sharing health data raises privacy concerns for the users. Who has access to this information and how is it secured by the company?
- Not for Everyone: Wearables may not be accessible to everyone, potentially creating an unfair advantage for healthier demographics.
Insurtech’s use of wearables is still in its early stages. But with careful planning and ethical considerations, it has the potential to revolutionize the way we approach insurance, making it more personalized and rewarding for everyone.
