Popularization of activity trackers such as Fitbit and Jawbone has changed lives for millions and surprisingly, it also has sneaked its way into health insurance companies’ expense management.
An activity tracker allows constant tracking of various physical activity measures such as average heart rate, calories burnt, blood pressure etc. of the wearer, enabling its users to analyze the figures recorded over time.
In order to obtain such relevant data about their policyholders, now health insurance companies are encouraging, even subsidizing such that their policyholders own an activity tracker. All the data recorded from these devices are uploaded onto a database available to the insurer, and through data mining/extrapolation and analyses of this data, they are able to uniquely underwrite their policyholders on a more regular basis at a lower cost.
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