Zhong An goes overseas. New insurer VCs. This week in insurance tech.
In 2015, John Hancock launched a partnership with Vitality Group for policyholders to receive discounts for hitting exercise targets tracked on wearable devices and earn incentives for logging workouts and healthy eating habits.
Over time, John Hancock Vitality received more state approvals and today is available in 48 states (outside of NY and ND). The effectiveness of wearable data in identifying high mortality risk was analyzed in a white paper by Munich Re and Vivametrica, which advised (re)insurers to “consider using physical activity metrics from wearable sensors at various touchpoints in the life insurance process.”
This week, Hancock made headlines by expanding Vitality to all new life insurance policyholders as well as its existing policyholders over time. Per John Hancock CEO Brooks Tingle, “Vitality has been an optional benefit. Now, we’re saying we won’t issue life insurance policies without these Vitality benefits on them.”
It’s worth digging into the specifics of the expansion. Officially, John Hancock will offer Vitality Go on all new life insurance policies. Vitality Go offers discounts at places like Amazon and REI for reaching health milestones, but does not offer annual premium savings.
For term life policyholders, Hancock will offer Vitality Plus, which does include savings of up to 15% of annual premiums, at a 3% rider fee of the semi-annual, quarterly, or monthly premium on the policy.
Here are a few of the additional figures we found:
About 20% of Hancock life insurance customers signed up for Vitality in 2015. Hancock has since doubled that figure to about 40%, which reportedly was below expectations.
In the Google Play store, the John Hancock Vitality app has somewhere between 1,000 to 10,000 installs. The app bumped up in the App Store after the announcement and now ranks at 1,138 overall.
Over the past three years, policyholder use of Vitality has increased 706% (unclear off of what base). Vitality users check in an average of 40 times per month. Per the NYT: “What drove the decision to make Vitality mandatory on all new policies was not the adoption rates but how customers used the offering.”
Looking more broadly at its standing in term life, we see that John Hancock issued $38B in new term life value, ranking 11th among life insurers in 2017. What do you think of the news? Send us a note by replying back to this email.
Willis Towers Watson, in partnership with CB Insights, put out its new insurance tech briefing this week with a focus on the life & health landscape.
Download a PDF copy here. The briefing includes a number of Q&As and profiles of life & health startups and the latest data on funding volumes and (re)insurer investment.
InsureTech Connect 2018
On October 2nd and 3rd, the third annual InsureTech Connect event kicks off at the MGM Grand in Las Vegas. ITC will bring together more than 6,000 attendees and speakers including top insurers, reinsurers, and regulators. Speakers include Lloyd’s CEO Inga Beale, Credit Karma CEO Kenneth Lin, and Hamilton CEO Pina Albo.
We’ve seen some interesting announcements from Asia in recent weeks. In Hong Kong, Blue, the joint venture of Aviva, Hillhouse Capital, and Tencent, officially launched to start selling term life and critical illness products online. And Zhong An signed its first international B2B customer in Sompo Japan.
In India, Amazon wants to sell life, health, and general insurance as a corporate agent, according to its filings with the Registrar of Companies. Recall other major platforms who have or are seeking approval below:
We recently did a deep dive on Ant Financial, which operates an insurance portal that pools products from more than 80 insurance companies for more than 390M annual users. Check out the slides here.