Data From Activity Trackers May Soon Save You Money

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Would you share your activity tracker data with your insurance company if it meant your rate would be cheaper?

Similar to Progressive Auto Insurances idea of a black box in an automobile, these devices would provide data to insurance companies. In return, clients would receive incentives and rewards.

The Street reported that insurance companies are interested in looking into the idea of clients maxresdefaultreporting fitness data in order to keep their costs down. This has not started yet, however, it could very soon.

A recent study by Life Happens, found that many consumers are interested in wearing an activity tracker if it meant they would receive rewards and incentives. The study states:

“The findings show that 51 percent of Millennials and 30 percent of people overall are very or extremely likely to consider wearing an activity tracker and share those results with a life insurance company in return for financial rewards for healthy behaviors”

. For the first time, this year’s Barometer Study looks at the use of wearable activity trackers and smart scales by Americans. The findings show that 51 percent of Millennials and 30 percent of people overall are very or extremely likely to consider wearing an activity tracker and share those results with a life insurance company in return for financial rewards for healthy behaviors; the number more than doubles (to 65 percent) when considering consumers who already use an activity tracker.

The results reveal that more than a quarter of Americans (27 percent) and a third of Millennials (33 percent) cite the potential to build a long-term relationship with an insurance company as a reason to share biometric data from a wearable activity tracker.

But there are still questions around what to share, and how much to share. Privacy issues are a big concern as this idea moves forward. With wearable technology growing very quickly, this could possibly be an always changing system as insurers figure this out.

It will only take one company to figure it out, and do it well though. Then others will be forced to follow suit in order to continue their long-term relationships with their clients.

Walgreens is already doing something similar, it is called Balance Rewards. You can connect your activity tracker to the Walgreens app, and you will receive points and incentives with your fitness achievements.

Stay tuned! I am very interested in knowing where this will lead in the future.

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