Original text here from Patrice Bernard (LinkedIn)
While it may seem straightforward, the integration of preventive measures into insurance is advancing slowly within the industry. For State Farm in the United States, which is no stranger to innovation, incorporating a fitness aspect into its life insurance coverage comes eight years after the pioneers.
The concept originally emerged within health insurance, with the clear aim not only to enhance the insured's well-being but also to decrease their medical expenses and consequently the payouts by the insurer, by offering tools designed to encourage healthier lifestyles and behaviors. It's only logical, then, to extend this principle to life insurance with the goal of delaying the inevitable for as long as possible, benefiting both the policyholder and the provider.
With this in mind, State Farm has launched a “Life Enhanced” mobile app for its new life insurance clients, promising to help them make the most of their remaining time. The app includes several complementary components, from the essential tools for planning last wishes and estate arrangements to a suite of solutions focused on long-term well-being optimization.
Included in the suite is the (almost) traditional platform for monitoring and coaching physical and sports activity. Once connected to a measuring device (usually a smartwatch), users are encouraged daily to complete small challenges to maintain their fitness. As an incentive, completed activities yield rewards, which can be converted into gift cards or donations to charities.
But the program goes beyond these basics. It also includes a wealth of content on diverse topics such as insurance products (unsurprisingly), mental health, home safety, and personal finances. In the case of finances, it even mentions practical tools in addition to educational modules, though their specific functions, which I fear may be limited, are not detailed. This aspect would also benefit from proactive, personal support.
Despite this caveat, State Farm's initiative is commendable for its recognition of the importance of prevention within the insurance ecosystem and, more specifically, for its rare acknowledgment of financial peace of mind as an essential health factor. This second point, now well-supported by academic research, is still not sufficiently addressed by insurers even though, beyond the potential impact of integrating it into their offerings, it represents an opportunity to step into a banking domain that has long been challenging them.
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