Tara Siegel Bernard reports that insurer John Hancock is introducing a program that has been successful in South Africa where by insured members earn discounts on their premiums by living healthier lifestyles and by sharing their data with the insurer:
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 concept — which has been used in South Africa, where Vitality is based, Europe, Singapore and Australia — has the potential to transform the way life insurance is priced, at least for consumers who are willing to continually share their health data. But it also raises questions about how that information will be protected — and whether it could be used in ways that ultimately work against a consumer’s best interests.
People who sign up will receive a free Fitbit monitor, which can be set to automatically upload activity levels to the insurer.
Read more on The New York Times.