LifeQuote, the UK protection portal and administration service from DirectLife, has revealed it is reviewing how best to include mobile health tracking data for pricing from devices such as the Apple Watch or Fitbit.
The development comes as LifeQuote said it expects to see insurers include health tracking data for protection pricing along the same lines as has been adopted for PMI policies.
Go deeper with GlobalData
According to LifeQuote, no protection insurer writing UK business uses individuals’ health tracking to price policies at the outset. However, LifeQuote acknowledged that engagement with the Vitality programme during the policy term can reduce premiums.
When the market starts to integrate mobile tracker health data into underwriting, LifeQuote said it will require standardised formats in order to be used for pricing comparisons.
Consultation
LifeQuote will therefore be consulting with insurers to understand their likely future requirements and develop a standardised way of recording the data.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn the same way as "postcode" pricing was introduced, LifeQuote said the industry is seeking alternative ways to help rate lives in the future to help simplify the underwriting process.
Neil McCarthy, sales and marketing director at LifeQuote, said the PMI market is rapidly adopting mobile health tracking as a way of setting premiums.
McCarthy said: "We would expect protection providers to look at including this information as part of their pricing strategy, or to look at accessing other data to help offer appropriately targeted life and health products to customers.
"However, this will require a standardised approach in the future if it is also going to be used to compare prices across products and providers. We are therefore engaging with insurers now to at least investigate the likely future requirements."
Direct Life is the parent company of LifeQuote. It is a wholesale provider of protection products in the UK and provides protection aggregator sales platforms financial advisers and national consumer aggregators.
