Insurance firm offers rewards to customers using wearable devices

A health insurance firm has begun to offer digital health devices to its customers to encourage healthier living.

Oscar Insurance said customers would receive free fitness monitoring devices and would be given rewards if they used them.

The incentive scheme bears resemblance to the use of telematics devices in cars, which have seen some insurers reduce premiums for drivers who demonstrate good driving behaviour.

Oscar’s customers will be given the Misfit Flash fitness tracker and be asked to take a recommended 10,000 steps each day. If customers reach this target, they could be rewarded with up to $240 of Amazon vouchers a year.

The wristband device will sync with an app to monitor customers’ personal goals, based on their current fitness levels. The tracker can also be used to help health insurance customers connect with healthcare professionals. 

Mario Schlosser, co-founder of Oscar Insurance, said: “When we started Oscar, there was the fitness tracker, and there was the world of health insurance, and the two rarely spoke. So it’s exciting to be in the middle of a sea of new information for providers that hopefully can contribute to better care.”

Alfa Bank, the largest private bank in Russia, has previously run a similar scheme which offered customers rewards for every step they ran.