1. A health-and-care actuary’s perspective
Wearable technology
A health-and-care actuary’s perspective
Matan Abraham
22 June 2016

2. Wearables measuring clinical health metrics
Healthcare wearables
Wearables measuring clinical health metrics
Currently the most popularly consumed with million units sold worldwide in 2015.
Source: Statista 2016

3. And this is only the beginning…
Lung cancer sensor
Smart Bra
SmartStop
Devices in concept
Kinsa Smart Thermometer
Simi
Skin-like Device
ReSound LiNX

4. So what do we know about you?
Past
Present
Future
Age
Gender
Occupation
Place of work
Education
Chronic illnesses
Family health history
HIV status
Smoking status
Glucose levels
Platelet levels
Steps count
Distance walked
Active minutes
Tracked workouts
Kcal burned
Average HR
Sleep patterns
Nutrition habits
Lung function
Hormone levels
Medicine intake
Toxin levels
Nutrient intake
Body temperature
Chronic disease management adherence
Dread disease indicators
At a single point in time
Continuously!

5. Improved risk stratification & underwriting
Better, more granular understanding of risks and exposures from policyholders accepted at standard rates
NUMBER OF INDIVIDUALS
Can also improve upon current resource intensive and costly underwriting practices.
Standard rates
Rated
Exclusions
Deferred
Declined
EXPECTED MORTALITY/MORBIDITY

6. Allows for the incorporation of premium discounts into product design.
Improved premium rating
Allows for the incorporation of premium discounts into product design.
NUMBER OF INDIVIDUALS
Standard rates
Rated
Exclusions
Deferred
Declined
Super preferred rates
Preferred rates
EXPECTED MORTALITY/MORBIDITY

7. Increased insurability
Allows for a data-driven and active approach to managing morbidity and mortality risk.
NUMBER OF INDIVIDUALS
This facilitates insurers’ ability to provide cover to those that were previously declined or deferred.
Standard rates
Rated
Exclusions
Deferred
Declined
EXPECTED MORTALITY/MORBIDITY

8. Further product design innovation
Lifestyle programmes
Income protection/ disability insurance
Managed care

9. Risks and challenges
Developing rating factors
Analytical work required to turn wearable data into rating factors used to determine estimates individual morbidity and mortality rates.
Statistical modelling vs experience rating approach
Product design challenges
Self-measured and inputted data
Policyholder opt-in to provide data and actively use wearables
Accuracy of wearable devices
Measurement manipulation
Data privacy and data management
Operational challenges

10. Thank you!