Adviser explores what it will take to engage consumers
Upmeet Sodhi, an adviser at Mutual Solutions, is doing a master’s thesis through Massey University on the optimum premium discount percentage to encourage policyholders of life and health insurance companies to increase their physical activity and to promote sharing of their activity information with insurers using fitness trackers.
Sodhi said about 30% of insurance companies around the world offered discounts to people who used activity trackers and showed consistent levels of activity.
“But not many people engage, maybe because whatever they are offering is too little or too vague.”
Sovereign in New Zealand offers benefits to people who use activity trackers through its Healthy by Sovereign programme.
“Insurers do not understand, if consumers are willing to increase their physical activity and overcome perceived risks of privacy in exchange of premium discounts they offer,” Sodhi said.
He said, done well, such policies should be a win-win for insurers and consumers. More activity should improve clients’ health and help companies have fewer claims, which would help to reduce premiums.
As part of his research Sodhi is conducting a survey, to which he is seeking responses. You can click the link here to access it.
