John Hancock life insurance to have customers wear Fitbits, adjust rates in real-time based on data

[Newsjock]

Source: New York Times

Andrew Thomas’s life insurer knows exactly when he arrives at his local gym. The company is notified when he swipes his membership card, and 30 minutes later, it checks that he is still there, tracking his location through his smartphone.

The insurance company has a vested interest in keeping Mr. Thomas alive and well. In return for sharing his exercise habits, his cholesterol level and other medical information, Mr. Thomas, a 51-year-old medical publisher who lives in Johannesburg, earns points, which translate into premium savings and other perks. By staying in good shape, it is less likely that Discovery, his insurer, will have to pay out his life and disability policies.

... Now John Hancock will become the first life insurance company to introduce a similar program for American consumers. The program, being announced Wednesday, will apply to both term and universal life insurance policies and is being operated through a partnership with Vitality, a global wellness company that already works with employers and health insurers in the United States.

... The new program also upends the traditional approach to life insurance underwriting, which typically bases its pricing on a detailed but static snapshot of a person’s medical status. Now, John Hancock’s term and universal policies will be priced continuously, at least for consumers who choose the Vitality program.

... John Hancock, which operates in all 50 states, said the universal life program had been approved by insurance regulators in 30 states, while the term program is available in 20 states; more states are expected to be announced throughout the year. It said no regulators had declined to approve it yet.

Read more: http://www.nytimes.com/2015/04/08/your-money/giving-out-private-data-for-discount-in-insurance.html

[djean111]

1. Ah! Taking the gambling out of insurance! The holy grail, really!

I wonder if employers will force their employers to get into this plan. On the surface, it looks like this is something that won't affect poor people at all - yeah, they will be sure to golf and check in at their health club....- but is really invasive no matter how it is framed.
And, lessee - admit to feeling depressed? Good reason to cancel a policy before suicide? I have heard of hedging bets, but this seems very Big Brother.

My current Part whateverthefuck insurer, through Medicare, is constantly asking me to please keep a detailed diary of everything I eat, do, or think. I can do that online or in a handy good-sized notebook that they provide. They also keep sending me coupons to buy food at WalMart. I don't like WalMart, and I also think that if they want to find out exactly what I am eating, they should do that the old-fashioned way and try to buy the info from my debit card issuer or my grocery store card issuer.

Sometimes I wonder if the end game is to not actually give anyone the money they get every payday at all - the corporations would just issue Monsanto-approved boxes of food to everybody and then tell them how they divided up the rest of the money.