Mass market wearable technology is relatively new and has evolved dramatically in recent years. Ever since the rollout of electronic devices capable of measuring and recording various types of health data, private medical insurers have been carefully eyeing the potential usage of these devices.
Wearables provide real-time data points that we expect to be detailed and accurate. However, is this really the case?
In this paper, Milliman actuaries discuss the implementation and practical uses of wearables in the private medical insurance market. They review why insurers are considering using wearable devices and how these devices might benefit their business models. They also highlight some of the pitfalls to consider.