American life insurance company John Hancock said that it will start selling only interactive policies that include digital fitness tracking, to mark its exit from the traditional life insurance business model.
Image: John Hancock adds digital fitness tracking to all its life insurance policies. Photo: courtesy of blackzheep/FreeDigitalPhotos.net.
The new interactive life insurance policies will now come with Vitality behavior change platform, which rewards policy holders for the everyday measures they take to lead longer and healthier lives, said John Hancock.
Vitality gathers health data from wearable devices such as smartwatches and FitBits.
John Hancock said that its Vitality policies, which have been developed on the convergence of behavioral economics and consumer technology, will reward customers for the healthier choices they make relating to physical activity, nutrition and mindfulness.
John Hancock Vitality Life Insurance will come in two options, Vitality GO and Vitality PLUS. While Vitality GO will be provided without any additional cost on all life insurance policies, Vitality PLUS at $2.00 per month will enable customers to take advantage of the John Hancock Vitality Program.
Some of the benefits that a Vitality PLUS policy holder can receive are savings of up to 15% on annual premiums and rewards for daily things taken up to stay healthy.
John Hancock president and CEO Marianne Harrison said: “For centuries, the insurance model has primarily provided financial protection for families after death, without enhancing the very quality it hinges on: life.
“We fundamentally believe life insurers should care about how long and well their customers live. With this decision, we are proud to become the only U.S. life insurance company to fully embrace behavioral-based wellness and leave the old way of doing business behind.”
The company started offering Vitality as part of its range of life insurance products in 2015 to address a “troubling shift” in Americans’ health.
John Hancock partnered with Vitality to use its pairing of technology, incentives and science to inform and reward policy holders for coming up with healthier choices every day.
John Hancock Insurance president and CEO Brooks Tingle said: “We have smart phones, smart cars and smart homes. It’s time for smart life insurance that meets the changing needs of consumers.
“We believe offering Vitality on all life insurance policies, at no additional cost, is the right thing to do for our customers, our business and society. We believe this is the future of our industry, and I encourage other insurance companies to follow suit.”