Cover-More Group in Australia has announced the acquisition of a majority stake in data analytics company FitSense, an enterprise created by the National University of Singapore. FitSense’s main capability, according to Cover-More, is to leverage health and fitness data from mobile apps and connected devices to support highly customised insurance products.
It is able to consolidate a person’s fitness data from devices such as smartwatches, mobile phones and other wearable devices and turn the data into an Activity Score, which can be used predict the user’s health and fitness level – and subsequently insurance risk and commensurate premium.
“Cover-More continues to look for ways to proactively transform our business for our customers, to focus on them as individuals and deliver products that reflect their individuality. And FitSense’s technology enables us to deliver highly customised and highly optimised insurance solutions in real time,” Mike Emmett, Cover-More Group CEO said.
FitSense conducted several pilot studies in 2016 with insurers in Europe to find out how willing customers would be to share fitness data with insurers compared to filling out a questionnaire.
“When it comes to medical insurance, people have to pay higher premiums if they had a family history of a chronic disease,” Jan-Philipp Kruip, co-founder and CEO of FitSense explained. “However, those who have made healthier lifestyle choices and exercise regularly are not able to benefit from lower premiums. That inequity was our starting point for FitSense. Almost everyone has the option to make healthier lifestyle choices.”
Fitsense will operate as a stand-alone entity, said Kruip, and will work with other insurers when it makes commercial sense to do so.