John Hancock is putting an end to traditional life insurance and plans to exclusively start selling interactive policies. Policyholders will be prompted to use wearable devices (or their phones) to track health data and are incentivized to pursue healthy habits with the promise of lower premiums.
To run the new program, Hancock partnered with Vitality Group, a platform that already operates widely in South Africa and the UK. Vitality claims policyholders using wearables live 13 to 21 years longer than “normally” insured couch potatoes.
Seemingly, this approach is a win-win: consumers pay less while insurers reduce their risk. And, while the company has sold such policies since 2015, a move to fundamentally change their business model poses a stark contrast against the norms of an antiquated industry.
Why its hot: When data collection is mutually beneficial, we’re okay with it