As health becomes an increasing public concern, the insurance industry is shifting from traditional insurance products to capitalize on consumers’ desire to improve their physical, mental and financial health.
Insurers are evolving their offerings to promote customer health and wellness through the incorporation of gamification, generative AI and wearable technology. Combined, these enable insurers to track consumers more closely and offer more customized plans and discounts based on healthier lifestyles.
GlobalData’s latest thematic report Health and Wellness in InsuranceLet’s take a look at how wellness trends have evolved and how key players in the industry are adapting to them.
Wellness Trends
As the report highlights, well-being does not just refer to feeling healthy, well-rested and free from disease, but also includes a sense of economic security, good mental health, social factors such as community and inclusion, and having environmental needs such as water and shelter met.
Technology, its impact on workplace wellbeing and increasing collaboration between insurers and pension providers means the insurance industry is well placed to address all aspects of wellbeing.
That said, the focus is still primarily on physical health. Devices such as smartwatches and health apps are increasingly gamifying consumers’ desire for optimized health. There are now numerous apps that allow consumers to track personal health and fitness goals, including steps taken, exercise plans, sleep, and diet. There are also many apps that promote meditation and increase financial literacy, helping individuals improve their overall wellbeing.
Access the most comprehensive company profiles on the market from GlobalData. Save time on research and gain a competitive advantage.
Company Profile – Free Sample
thank you!
You will receive a download email shortly
We are confident in the unique quality of our company profiles, but because we want you to make the most beneficial decision for your business, we are offering free samples that you can download by submitting the form below.
From GlobalData
How will it impact the industry?
In response to consumers prioritizing healthier lifestyles, insurers are moving beyond traditional insurance offerings.
The report notes that while well-being is not a new trend, its impact on the insurance industry and innovation in companies’ product offerings has been accelerated by both the pandemic and the cost of living crisis.
Aviva, Elevance Health, UnitedHealthcare and Vitality were all recognized as leaders among insurers adapting to the health theme.
The growing popularity and usage of health-related apps has opened up profit opportunities for insurance companies, some of which have begun to reward customers who focus on health and fitness with discounts on premiums.
The report states: “In the United States, companies such as Humana have implemented this model and observed significant increases in participants’ average daily steps compared to the general population.”
“This approach helps prevent lifestyle-related diseases by encouraging activities such as cycling, hiking and walking.”
In addition to this, the growing popularity of wearable technology has enabled insurers to collect data on policyholders’ health and lifestyles, allowing them to create more accurate risk profiles and further personalize insurance plans. The report suggests that offering discounts based on the integration of wearable technology has allowed insurers to attract cost-conscious consumers amid the cost-of-living crisis.
Enhanced data oversight for those who decide to share their data could enable individuals to identify health risks earlier and implement preventative strategies that can reduce underwriting risk, while consumers could reap the financial benefits of lower premiums.
One of the tools being used to understand wearable technology is AI, which can process large amounts of medical data and identify individual health patterns and potential risks, helping insurers develop more personalized health plans, which is said to reduce overall costs for insurers and policyholders.
Despite the benefits to the industry, the report warns that harnessing vast amounts of consumer data also comes with challenges: Health data is particularly attractive to cyber hackers, so insurers need to ensure the security of this information to retain consumer trust and customer loyalty.
