In recent years, wearable technologies became popular among different social and age groups. The most important category of these devices includes smartwatches like Apple Watch and fitness trackers like Xiaomi Mi Band. While they help to read messages, answer calls or check tasks, the primary purpose of these gadgets is to gather health data.
That’s why wearables can play a leading role in the development of modern insurance. The idea of a small bracelet that a person wears round-the-clock to collect health information looks promising. Moreover, there will be more than 1 billion connected wearable devices by 2022. But how they can help insurers and clients? And are they helpful at all? Let’s figure out.
Use Of Wearables In Healthcare
The widely available modern gadgets can’t deliver perfect accuracy or functionality. But even these wearables simplify many insurance tasks: underwriting, claims/risks management, development of new apps, customer assessment, etc. Enterprises can use these tools to run smoother evaluation processes and promote a healthy lifestyle.
Overall, the critical benefits of wearables for healthcare/insurance industries are as follows:
- Better in-force management that helps to develop the lifelong customer experience.
- Chronic disease management available 24/7, even without doctors or hospitals.
- Improved protection with a lower number of deaths from diseases.
- More engagement opportunities thanks to new values apart from policies.
- Non-invasive studies completed remotely without full examinations.
- Broader customer coverage for active people who think that they don’t need policies.
Wearables allow insurers to deliver discounts and bonuses, promoting a healthier lifestyle. Simultaneously, customers can track their health issues more straightforwardly. As a result, both parties get benefits: higher revenue plus more trust for enterprises and better services for clients.
Major Concerns About Wearables
Wearable devices look great for the insurance and even medical purposes. But there are some drawbacks of using them. Precisely, critics of wearable-focused insurance software development define two significant concerns:
Lack of accuracy. Really, even the most accurate gadgets like Fitbit can’t compete with hospital equipment. It’s just impossible to create a small tracker with professional accuracy, as for now. But wearables win this trade-off by monitoring health data 24/7 and with great ease – anybody can get a bracelet and track heart rate.
Lack of privacy. The problem is it’s often difficult to state who collected data belongs to. Moreover, users and companies can’t answer how this information can be stored, exchanged or even sold. Thus, it’s required to develop a clear legal framework as well as reliable protection for wearables that collect sensitive data.
Overall, current gadgets can be used for insurance definitely. Combined with regular hospital checkups, they can provide priceless insights for underwriters and customers. Nonetheless, with the rise of popularity, we will need laws that define how to use/exchange info collected via wearables. Of course, this info must be secure.
The Future Of Insurance
It’s not entirely clear which technologies will define the industry’s future. However, we can’t deny the importance of data. The most obvious way to move from palliative care to preventive help is to collect and analyze more personal data. In this case, wearables can turn into crucial gadgets that will complement or even replace traditional medical equipment.
To sum it up, let’s refer to Marianne Harrison, CEO of John Hancock. She said that traditional insurers don’t care enough about life quality. Underwriters of the future should care about the duration and wellness of their customers’ lives. It’s a new way of doing business. Will wearables fit it? Most likely.