Nancy March 23, 2018
Insurance 2.0 will bring new business models to improve performance analysis and forecasting decisions by using ubiquitous networking devices and real-time data.
Ron Schaber, vice president of the Munich American Reassurance Company, said in MEDICI: “By 2020 there will be about 50 billion devices connected to the network, which means that each person owns 6 networked devices. Some large companies spend billions of dollars in Internet of Things (IoT) and data analysis. For example, Samsung Electronics will switch all product lines to support the IoT in the next five years.
In addition, high-level sensing technology has elevated the insurance industry to higher level through the integration of historical data and detailed networking device data, therefore properly managing risk and reducing losses. In 2021, more than 500 million smart wearable devices are expected to be sold, including more than 80 million smart watches, 5.6 million wearable cameras, about 64 million RFID wristbands, and over 22 million sports watches. Physical monitoring devices such as sports watches can track the health condition of user and adjust policies according to the degree of risk of lifestyle.
Oscar Healthcare, for example, tries to encourage client to have a healthier life. So that Oscar Healthcare cooperates with the wearable device maker Misfit to provide user with free Misfit wristband pedometers, which automatically connects the Oscar app. If user reach the target every day and the target is reached twenty times, they will get Amazon’s $20 voucher.
Samsung is also testing the health insurance IoT model. At the end of 2017, it announced that it would cooperate with UnitedHealthcare and Qualcomm Life to participate in the UnitedHealthcare Insurance Company’s Encouraging Sports Program. UnitedHealthcare policyholders use Gear Fit2 and Samsung Gear Sport to maintain their health goals. As long as they achieve their daily goals, they can earn more than 1,000 US dollars each year.
Aetna Insurance Company has distributed Apple Watch to 50,000 employees to improve their health, and is currently negotiating with Apple to offer iWatch for policyholders. The IDC study pointed out that in 2019, more than 40% of medical institutions in the world will adopt IoT biosensors.