And finally…life insurance firm offers chance to lower premiums through health monitoring apps

Built on the convergence of behavioural economics and consumer technology, John Hancock’s ‘Vitality’ policies incentivise healthier choices linked to physical activity, nutrition and mindfulness which can be assessed by tracking fitness and health data through Fitbits and Apple Watches.

All policyholders will be offered an option called Vitality Go, at no extra cost. This will give users access to expert fitness and nutritional resources and personalised health goals through an app and website. If they hit certain goals, users get perks such as discounts at retailers.

A second option, Vitality Plus, takes the idea further. For $2 a month, customers can up to 15% off annual premiums if they agree to track healthy exercise through wearable devices. Users can earn an Apple Watch for as little as $25 plus tax or receive a complimentary Fitbit device to record their activities.

John Hancock has been offering the service as an option since 2015 and says that the results are compelling. Vitality policyholders take nearly twice as many steps as the average American.

Brooks Tingle, president and CEO, John Hancock Insurance, said: “We have smart phones, smart cars and smart homes. It’s time for smart life insurance that meets the changing needs of consumers. We believe offering Vitality on all life insurance policies, at no additional cost, is the right thing to do for our customers, our business and society.”

“For centuries, the insurance model has primarily provided financial protection for families after death, without enhancing the very quality it hinges on: life,” said Marianne Harrison, John Hancock president and CEO. “We fundamentally believe life insurers should care about how long and well their customers live. With this decision, we are proud to become the only U.S. life insurance company to fully embrace behavioral-based wellness and leave the old way of doing business behind.”