I am a Diabetic and I want Insurance tailored to my needs....
I had written this post some years back and the data is still relevant to the conversation I am starting today. Adverse selection compels life insurance carriers even today to rate up prospects with diabetes or a history of diabetes in the family. If 30 to 50% of the consumer base is diabetic or on the path to it, how will life insurance companies continue a growth path.
https://www.dhirubhai.net/pulse/iot-changing-way-life-health-insurance-sold-diabetics-fernandes/
While we can debate on data privacy and lifestyle changes the fact remains that today there are means to track activity, monitor blood glucose and an entire science behind nutrition and the ability to reverse the ill effects of type 2 diabetes.
Then why are insurance companies stuck to historic product models of adverse selection, when the opportunity may lie in the epidemic. Today health care companies are bearing the immense burden of costs related to diabetes treatment, when preventive action and remediation may be the best way to approach this.
Here is an interesting start up that is a step in that direction. An article that is written by its CEO that leads you to see the opportunity in the epidemic.
https://www.dhirubhai.net/pulse/robin-hood-life-insurance-yogesh-shetty/
My only question is why are the big box life insurers sleeping over this opportunity knocking on the door? Is there something for Healthcare and Pharma to gain from the ignorance of Large life insurance players? The bottom line is that insurance companies can only thrive if their written premiums grow. If adverse selection is limiting the number of people they can sell to, then what is the future for written premium growth?
I will follow up this article up with a product model that I feel life insurance carriers should move to in a time when data is readily available and everyone is willing to share data. # connected devices # wearables # healthy living
About the author:-
Christopher Fernandes has worked in insurance companies managing business operations as part of start up operations and subsequently moved to technology consulting helping insurance & health care companies improve process controls and innovate business operations.
Disclaimer:- The views expressed are based on independent research and do not represent a point of view by my current or past employers.