Keep fit, save cash: Deloitte research shows demand for fitness linked insurance
3 May 2016
Four out of 10 UK health insurance customers would consider tracking and sharing their health and fitness data to get a more accurate premium, according to a YouGov survey for Deloitte, the business advisory firm. For individuals aged 25-44, this figure stands at 46%, only slightly higher than 40% of the over 55s. Nearly half (49%) said they would give their insurer more of their data, if it meant they’d get a discount on their health insurance.
Deloitte’s research showed that of those who would use technology to manage their health, their preference would be to receive it from a doctor or insurer.
David Rush, head of insurance at Deloitte, said: “Some insurers use the data produced by wearables to offer personalised health insurance policies to an individual, and, in some cases, provide bonuses like cheaper gym memberships, free movie tickets and travel perks, if a person increases their exercise. As more people wear physical activity and health trackers, we think there’s untapped market for insurers that could grow in future.
“There are over five million* people in the UK that have private health insurance, paying £3.6 billion in premiums each year. Once tech-savvy millennials grow up and the practice of linking insurance to wearables becomes mainstream, insurers could see a spike in these types of policies.”
Rush continued: “When looking at those who didn’t want a tech-enabled service for managing their health, half said it was because of cyber concerns. Insurance-linked wearables can potentially save people money on their health insurance policies, so work needs to be done to satisfy fears. Insurers need to explain in simple, everyday language how their data is stored, used and protected from cyber threats. Insurers that address these issue will be the wearable winners.”
Notes to editors
*Source: Association of British Insurers
The online survey was conducted by YouGov on behalf of Deloitte and polled the views of 654 health insurance customers in April 2015.
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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