Nearly 50 years after Captain Kirk began using his wrist communicator on the television show “Star Trek,” wearable technology is taking hold. From Fitbit to Google Glass, the technology is influencing how people live and work. Executive Summary As more individuals—particularly millennials—embrace the latest technology/fashion trend, early adopters of wearable devices in the insurance industry are weighing benefits for claims adjusting in property and auto, and return-to-work initiatives in workers comp, against privacy and health risks of insureds.
While there are many benefits to utilizing wearable technology in the insurance industry, along with the innovation comes risks, according to experts.
Wearable technology refers to miniature electronic devices that are worn under or on top of clothing or are somehow attached to the body. The devices are capable of collecting a variety of data including video and audio on the driving, eating, exercise and other habits and behavior of those wearing them and then communicating this data over computers or smartphones to third parties such as insurance companies.