Lesser premiums for better health: IRDA proposes tracking fitness data by wearables

A working group set up by the Insurance Regulatory and Development Authority of India (IRDAI) has recommended that insurance companies must make use of activity data monitored by fitness trackers while pricing and designing insurance products. The objective is to keep the customer/insurer informed about their health and include perks, such as lower premiums, for people who have a healthier lifestyle.

The use of telemetrics for various insurance applications can be explored. Our working group has submitted a report recommending that policyholders who have healthier practices are incentivised. If insurance companies can give them bonus points for good practices, they can be given concession on premiums.” [Subhash Chandra Khuntia, Chairman, IRDAI]

This is already happening in US and if this gets an official stamp, this will lead to mega explosion in fitness tracker space. The key question remains of data privacy and how / to what extent is your data from fitness tracker is shared with the insurance company (and what do they do with data).

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