PAYL : Wearable Trends – EY Paper
Article Synopsis :
Smart watches, smart toothbrushes, Google contact lenses, where does it end? The answer: it doesn’t.
In “PAYL : Wearable Trends – How will real-time client activity and health data change your insurance business?” EY identifies the latest trends in wearables and suggests how insurers can monetise real-time sensor-data utilizing EY’s Pay as you Live (PAYL) framework.
The impact of sensor technologies will be extensive, profound and long lasting and top-performing insurers are already leveraging wearable technologies to create significant value by:
- Creating direct, unmediated customer relationships — as customers share objective activity data in return for insurer benefits
- Providing advanced intelligence about customers — with data sets that combine vast historical information with real-time streams, allowing insurers to create truly individualised relationships, as opposed to the generic segmenting and rudimentary targeting of the past
- Optimising the customer base for profitability — and simultaneously managing risk and underwriting functions more effectively
- According to EY’s 2016 Sensor Data Survey of senior executives from nearly 400 insurers globally, wearable sensors will be one of the most important data sources driving competitiveness within the industry
The paper explores the following trends shaping the PAYL landscape in the near- to mid-term:
- The deployment of wearable technologies to build long lasting relationships in health insurance, with insurers and customers joining hands on tailored products and services with real-time client health monitoring.
- Fitness bands augmented by sensor-equipped clothing (i.e., smart clothing) to capture health data.
- The emergence of ‘physically integrated devices’, i.e., embeddables and ingestibles, for everyday health and wellness assessments.
Per the authors:
- Digital health will soon enter the mainstream and consumers will more readily make their health data available to insurers
- Gamification will play a key role in customer engagement with things like standardized points systems incentivizing the use of wearable technologies
- Ultimately wearable devices will help mitigate risk and the incidence of loss
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Digital Insurer's CommentsHow many steps did you take today? Actual distance walked? Flights of stairs climbed?
Two years ago none of us knew the answers to these questions. But today more than twenty percent of us (and growing) look to our phone or wearable device for precise, up-to-the-second data.
Too often the focus is on the technology, the wearable, the gadget. But it’s the data that gives us a sense of enlightenment and, yes, empowerment. We like to know. And we like to save money, we like a deal.
Forward thinkers like Vitality, Oscar, and Manulife are incorporating knowing and saving in their product propositions. How about you?
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