Historically, most health insurance policies treated individuals as statistical means. Risk was measured by age, gender, and pre-existing conditions, without regard to the individual’s lifestyle, genetic predispositions, and health habits. The result? Generic coverage policies and premiums that did not reflect the needs—or risk—of the insured. 

Thanks to new developments in health data analytics, this is now changing. 

With wearables, electronic health records, and cell phone apps, insurers now observe a vast trove of live data. This allows them to design personalized policies according to an individual’s actual health history. A person who exercises regularly, has low levels of stress, and has the right diet might be given discounted premiums and greater rewards compared to someone who is risk-prone towards his or her health. 

Others have already tested these models. Insurers like Vitality and Oscar Health offer members rebates, cash bonuses, or other services when they reach health milestones or schedule check-ups at regular intervals. That’s good for the customer as well as encouraging general long-term health—a pleasant result for insurer and insured alike.