All in the Wrist action Final
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The document discusses how wearables and health data can impact the life insurance industry. It notes that wearables can help insurers better understand customer behaviors and health over time, allowing for more personalized policies and rewards programs. New engagement models are emerging that focus on ongoing health monitoring and advice instead of one-time transactions. As people live longer and share more data, insurers have opportunities to develop new products that focus on prevention, early detection, and chronic disease management. The future of insurance may involve artificial intelligence for personalized health coaching and new ways of leveraging shared data to address longevity and improve quality of life.
All in the Wrist action Final
- 1. 1September 24, 2015 1September 24, 2015 It’s all in the wrist action: Wearables for Life Insurance Andrew Dart Insurance Industry Strategist
- 2. 2September 24, 2015 An interesting lesson On the road to success, there are some pitfalls too!
- 3. 3September 24, 2015 Key insights from today’s talk • Customer life cycle is the foundation to understanding the new engagement model. • Wearables can have a positive impact on life insurance. • Our rewards programs must change. • There are some cool new ways to do what we have always done. • The Personal Coach will be the next way to engage. • People living longer and sharing data will give us new opportunities.
- 4. 4September 24, 2015 4September 24, 2015 The customer life-cycle and the new engagement model Foundation of relevance
- 5. 5September 24, 2015 Engagement Spectrum Attract Capture Service Retain Customer Lifecycle: Foundational Concept Aware Consider New Customer Contract Customer Incident Situation Change Separate Consider Leave Promise Fulfilment Disillusionment
- 6. 6September 24, 2015 Customer Lifecycle: Many journeys within it Melvin Brand Flu: Livework Intelligence
- 7. 7September 24, 2015 Attract Capture Service Retain Traditional Insurance Engagement Buy Separate Claim 1) Nothing going on in between 2) Purely reactive 3) One time risk evaluation / Proxy factors 4) Paper based
- 8. 8September 24, 2015 Attract Capture Service Retain Digital Insurance #1 – Data Driven Products Buy Separate Claim Examples: UBI / Wearables 1) Mobile in nature 2) Two-way communication all the time 3) Digital Data / Accurate factors for risk modelling A) Identify new segments B) Reduce claims Data
- 9. 9September 24, 2015 Attract Capture Service Retain Digital Insurance #2 – Engaged Customer Buy Separate Claim 1) Risk actively managed 2) Claims actively avoided 3) Personal value generated for customer from data Value to customer Nearest gym with your equipment Fastest driving route home Running trail weather conditions Data Services Value to Insurer & customer Flood proximity alert Sitting too long alert Healthy food selection
- 10. 10September 24, 2015 Attract Capture Service Retain Digital Insurance #3 – Engaged Prospect Separate Services also useful to prospects and ex-customers Data Services Buy Claim a) Platform of engagement b) Omni Channel – deliver services how you like to consume them c) Experience Layer / Engagement Layer / System of Record Layer Value to everyone Fitness evaluation Exercise advice Nutrition advice Value to everyone Information on latest trends Invitation to events Cohort competitions
- 11. 11September 24, 2015 Customer Focus 2.0 Customer life-time value “How much can we make from this person?” Life-time value for Customer “How can we create more personal value for this individual?” OR
- 12. 12September 24, 2015 12September 24, 2015 Wearables for Life They can have a positive impact
- 13. 13September 24, 2015 Why wearables: The rise of obesity (1985 – 2010) Obesity is just one part of the 70% of the annual $2.6 trillion bill for health care in the U.S. that is the consequence of potentially changeable human behavior. – PwC June 19, 2014 via Forbes
- 14. 14September 24, 2015 Wearables for Health & Fitness: Connected People American Heart Association found up to $3.75 claims savings for Insurance companies in the first year for every $1 spent on home heart monitoring Microsoft Watch Apple Watch Oscar Fitness deviceHexoskin Shirt FitBit Wearables Google Contact Lens Azoi’s Kito
- 15. 15September 24, 2015 Wearables: The benefits of connected people • Providing a free device significantly increases opt-in rate and sharing of data by participants • Feed back from the device reduces program drop out • Improvement in overall health with connected wearables greater than simple manual entry App based program • Reduction in health claims by up to 23% and hospital costs by 16% • Continued health conscious after program increased from 20% to 60% • Greater ability to “gamify” due easy collection of range of standardized metrics • Clinical grade data if shared is a treasure trove for actuary and marketing • 50% of wearable technology owners are between the ages of 18- 34 with almost a third having annual incomes of over $100,000. Interestingly another 30% are aged 55+ and are overweight.
- 16. 16September 24, 2015 Vitality’s stunning effectiveness Source: BCG Blog 2014
- 17. 17September 24, 2015 John Hancock – Insurance products based on fitness data 84% of those surveyed said they would be more likely to purchase a product that rewarded healthy choices. Universal Life & Term Life • Nonsmokers – 1,000 points • in-range cholesterol – 1,000 points • In range glucose – 1,000 points • In range blood pressure – 1,000 points • Regular workouts – 3,120 points annually • Flu shots – 400 points Up to $36,000 in premium savings
- 18. 18September 24, 2015 18September 24, 2015 Rewards must change Don’t you know me by now?
- 19. 19September 24, 2015 Today we have impersonal e-coupons – you find the value! Ho hum! I don’t do “Spas”! I hate check-ups! My eyes are good! My feet are good! I don’t go to the gym or buy vitamin supplements!
- 20. 20September 24, 2015 In Store promotion creating personalized customer value Credit: idownloadblog.com Engagement across the Affinity ecosystem
- 21. 21September 24, 2015 New and improved rewards for Vitality Credit: Discovery.com
- 22. 22September 24, 2015 22September 24, 2015 The cool new ways to do what we always have done Start ups and Unicorns
- 23. 23September 24, 2015 FitSense: Simple score, multi-device, flexible rewards Source: Fitsense Pte Ltd
- 24. 24September 24, 2015 MyFiziq: A new way to look at BMI over time Credit: MyFiziq.com
- 25. 25September 24, 2015 Oscar Health Credit: Forbes Blogs Free device and App with insurance Hit your daily activity target and get $1 on an Amazon gift voucher capped at $20 monthly
- 26. 26September 24, 2015 Kito – A Clinic in an iPhone case www.azoi.com
- 27. 27September 24, 2015 Virtual Doctor visits Insurers can get savings upward of 75% by purchasing in bulk for their members. Customers save time as they can get immediate answers for family medical issues 24x7 UnitedHealthcare is planning to cover all or part of the cost of these e-visits for up to 20 million of its customers by 2016
- 28. 28September 24, 2015 28September 24, 2015 The Personal Coach will be the next way to engage AI and scalable advice
- 29. 29September 24, 2015 CIGNA Health App
- 30. 30September 24, 2015 Scalable advice – How Next Gen AI differs from Siri Natural Language Processing with Voice Recognition “Sit boy!” “OK!” Cognitive Computing “A chair is to sitting, as a bed is to ______” “Huh? – Woof?”
- 31. 31September 24, 2015 Using interactive AI to eliminate forms & boost engagement Improve healthy habits by 23%. 200 million texts with users in the first 3 months after launch. “Damn; if it doesn’t feel like I’m talking to a real person!”
- 32. 32September 24, 2015 32September 24, 2015 Super longevity and sharing data New business opportunities
- 33. 33September 24, 2015 The Dawn of Super Longevity “One hundred and fifty, and still young, dude. Rock on.” Credit: Disney Pixar
- 34. 34September 24, 2015 Super Longevity: Extend & improve quality of life Parkinson’s Disease Alzheimer’s Disease Diabetes Obesity Genetic Mapping Google’s Baseline Study
- 35. 35September 24, 2015 Super Longevity: Cycle-time on human organs? Just like planes, we will monitor key components of the human body and replace them before they become a problem
- 36. 36September 24, 2015 Super Longevity: Early detection and intervention Google is developing nanoparticles and wearables for early detection of cancer
- 37. 37September 24, 2015 Using data to manage chronic diseases “Our customers get better, just by being our customers.” Ross Beerman, CEO AllLife Insurance, SA.
- 38. 38September 24, 2015 38September 24, 2015 In Summary
- 39. 39September 24, 2015 Key insights from today’s talk • Customer life cycle is the foundation to understanding the new engagement model. • Wearables can have a positive impact on life insurance. • Our rewards programs must change. • There are some cool new ways to do what we have always done. • The Personal Coach will be the next way to engage. • People living longer and sharing data will give us new opportunities.
- 40. 40September 24, 2015 Product Innovation Data Driven Ecosystems Buying Journey Insight Enabled Enhanced Customer Experience As a Service Internet of Things / Wearables Mobility Embracing Market Dynamics Addressing New Needs and Wants Leveraging Technology Consumption Understanding Engagement Where to start? Master any of these 3 major themes On the road to success, there are no short cuts.
- 41. 41September 24, 2015 41September 24, 2015 Thank you Andrew Dart Insurance Industry Strategist CSC Asia, Middle East and Africa Twitter: @ITInsuranceGuy Email: adart@csc.com