The business opportunities of implementing wearable based products in the health and life insurance industries

• Autor(a) principal: Barbosa, João José Rego
• Data de Publicação: 2019
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.14/29077
• topic: Wearable technology; Health insurance; Life insurance; Insurance value chain; Seguros de Saúde; Seguros de Vida; Cadeia de valor da indústria de seguros; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

The ability to collect biometric data continuously was recently enabled by the development and massification of wearable technologies - computers that are incorporated into items of clothing and accessories which can be worn on the body - unlocking huge opportunities for health and life insurers. Although a great deal of research has been done regarding the technical aspects of these devices, very few works explore the business and managerial implications of implementing wearables into insurance products. Through the combination of secondary data and in-depth expert interviews, this work analyses the impact of wearables and wearable data in the insurance value chain, identifying the main opportunities and challenges to leverage such a technology. This research concludes that in spite of the current narrow use of wearable devices as engagement tools in insurance wellness programs designed to drive user loyalty, this technology has the potential to accelerate the underwriting process, support preventive care, expand the customer base, enable dynamic pricing and enhance the customer experience as part of a connected health ecosystem. Customer adoption, data privacy and legislation are some of the main obstacles for insurers to leverage this technology, on top of the necessary IT infrastructure and data management capabilities which insurers are acquiring mainly through partnerships with innovative players. By implementing wearables technologies, health and life insurers may benefit from reductions in operational costs, new revenue streams and ultimately gains in competitive advantage.