John Hancock is the first US insurance company to ditch traditional life insurance policies entirely in favor of “interactive life insurance.” John Hancock is encouraging (but not mandating) that policyholders to share health and lifestyle data with the company. This data typically comes from wearable devices, like the Apple Watch or Fitbit.
Interactive life insurance is an excellent way for insurance firms to select the more healthy and thus – more profitable customers – while shaping existing policyholder behavior. They could, for example, offer discounts or rewards to customers that achieve specific activity goals. Although customers can opt-out, they’re likely to miss out on certain discounts and offers.