Historically, underwriting has been based on data which is easily verifiable, rather than data which is most relevant. The advent of telematics and wearable computers could change that.
The current emphasis is on postcode pricing. Short-term providers are already using this. Life insurers are eyeing it nervously: nobody wants to go first, bu they all recognise that the need to be ready to follow if anyone else starts, in order to remain competitive. Telematics and wearable computers could leapfrog postcode pricing.
Telematics could be used to encourage and reward better driving.Aviva and LV= have signed up to Octo U, who use a
Wearable technology could help to identify and motivate the best quality lives, as well as to help those with chronic conditions manage and report on their conditions.
Companies already exploring this include:
Surify - John Hancock Vitality (US)
- Manulife MOVE (China)
- Vitality (Active Rewards programme)
- AIG (US) to monitor construction works activity risk.