How Health Insurers Can Embrace IoT in Three Strategic Steps

Simon Perry, insurance expert at GMC Software, highlights the rapid uptake of the Internet of Things (IoT) and wearable tech by consumers. According to CCS Insight, the UK hosts roughly 10 million wearable devices today, a figure expected to triple to almost 33 million within four years. PwC reports that consumers favor wearables for entertainment, cost savings, and healthier lifestyles.

Health insurance has quickly recognised the strategic value of IoT. Companies like Vitality and Oscar already integrate apps and fitness trackers into their customer experience.

From an insurer’s perspective, wearables deliver:

• Deeper customer insight through advanced analytics.
• Continuous engagement via apps and devices.
• New customer acquisition for tech‑savvy markets.
• More accurate underwriting and potential premium adjustments.

Our research shows that 56% of consumers would welcome technology‑driven premium calculations.

1. Map the Landscape

Begin by studying industry leaders. Vitality and Oscar offer fitness trackers coupled with rewards—Amazon vouchers and lower premiums—to incentivise activity. Their success has raised customer expectations for real‑time data and seamless experiences. Understanding these benchmarks helps insurers predict future demands and carve out unique value propositions.

2. Integrate Without Overhauling

Many health insurers still operate legacy, siloed systems. A full replacement is costly and time‑consuming. Instead, adopt interoperable add‑on solutions that feed data into existing infrastructure. This approach unifies legacy data, simplifies analytics, and ensures smooth data flow across departments.

3. Communicate Value Continuously

For wearables to deliver on their promise, insurers must explain how devices influence premiums and health outcomes. Transparent, channel‑appropriate communication—be it app notifications, emails, or SMS—keeps customers engaged and reduces device abandonment.

Effective communication also builds trust, a core pillar of E‑E‑A‑T. Without it, even the best technology can fail, leading to wasted investment and lost competitive advantage.

By following these steps—benchmarking the market, integrating smartly, and engaging customers—health insurers can confidently harness IoT to offer personalized, data‑driven coverage that meets modern expectations.

Author: Simon Perry, insurance expert, GMC Software