Mark Evans said that by implementing wearable devices, insurance companies would have invaluable insights into a customer’s ‘inherent risk’. In effect they would be recording their actual habits rather than their probable behaviour.
Talking at the recent Guardian Media Summit, Evans said: “Through wearable tech, we can better understand your lifestyle and inherent risk. Absolutely we think wearable technology will transform the insurance sector.”
Evans made reference to telematics in the car insurance which is focused on actual usage. Insurers have been using these solutions to assess factors such as how a customer drives when creating policies, rather than relying on basic customer profiling.
“We use technology for motor insurance; black boxes [in cars] enable people to get discounts because they can tell us they are safer drivers. You move from claims data to actual data.”
Evans said through wearable tracking technology the same principle could be applied to life insurance, as it would give insurers a much clearer understanding of a person’s actual risk.
The marketing chief inferred that the deployment of such technology would allow insurers to price for risk ‘in a fair and transparent way’.