How Is Wearable Health Data Changing Insurance?

Wearable health data is changing insurance by giving insurers a more current view of policyholders' health and behavior. Smartwatches, fitness trackers and smart rings record sleep, respiratory rate, blood oxygen, stress indicators, activity and more. Insurers use these signals to personalize policies, refine risk assessment, reward healthy habits and engage policyholders, while addressing data privacy, regulation and access to technology.

This post opens ROOK's Wearable Series on how wearable technology is reshaping the insurance industry.

Wearable data is the information collected by electronic devices worn on the body, from heart rate to sleep patterns and stress levels. For insurers, wearable data offers a more current picture of a person's health, which supports personalized policies and better risk assessment.

Wearable data lets insurers assess risk more accurately, encourage healthy behaviors and tailor products to individual needs, because wearables collect ongoing information about a person's health and behavior. The key data types are below.

Sleep patterns: Wearables track sleep duration, quality and cycles (such as deep sleep and REM). Poor sleep has been linked to conditions like obesity and diabetes, which makes sleep data relevant when insurers evaluate long-term health risks.

Respiratory rate: Respiratory rate is the number of breaths a person takes per minute. Changes from a person's usual respiratory rate are a signal insurers can factor into respiratory risk assessment.

Blood oxygen levels (SpO2): Some wearables measure oxygen saturation in the blood. SpO2 readings are a signal associated with respiratory issues such as sleep apnea, which insurers can consider when assessing health risks.

Stress levels: Wearables use heart rate variability and other indicators to estimate stress. Chronic stress is a known risk factor for mental health issues and heart disease, so insurers can use stress estimates to encourage stress-reduction behaviors.

Caloric intake and nutrition tracking: Many wearables sync with nutrition apps that log food intake, calories and hydration, which helps insurers understand diet-related risks linked to obesity, diabetes and cardiovascular health.

Location and movement data: GPS data from wearables can describe driving behavior, such as speed, braking patterns and time of day. Auto insurers use this data for usage-based policies or to reward safe driving.

Posture and musculoskeletal health: Some wearables report posture and ergonomics, helping users address sedentary behavior. Insurers can use posture data to assess risks such as back problems or repetitive stress injuries.

Blood pressure monitoring: Blood pressure readings from home devices and wearables are relevant to hypertension and heart disease risk, which helps insurers assess cardiovascular risk.

Glucose monitoring: Continuous glucose monitoring (CGM) devices are especially relevant to diabetes management. Insurers can use glucose data to understand long-term risks related to blood sugar control.

Wearable data benefits both sides: insurers get better risk information and policyholders get insights and rewards.

For insurers: Wearables give insurers a more current picture of a policyholder's health and lifestyle, which supports more accurate underwriting and pricing. For example, a client with consistently healthy sleep patterns and low stress levels might qualify for lower premiums. Insurers can also act on changes in wearable signals with proactive outreach.

For policyholders: Wearable data gives policyholders personalized health insights. Policyholders who maintain healthy behaviors can be rewarded with lower premiums, which creates an incentive to stay active, and personalized tips based on their own data help them manage their health.

Wearable data changes how insurers assess risk and engage policyholders: detailed health information lets insurers offer personalized, data-driven policies that reward healthy behavior. Policyholders get insight into their wellbeing and the potential for lower premiums.

Wearable adoption is growing worldwide.

Globally: Wearable device shipments reached 533 million units in 2021 and are projected to hit 776 million by 2024.

In the U.S.: One in three Americans now owns a wearable device, with roughly 110 million users, a number that continues to rise.

Across regions:

Wearables are more than step counters: smartwatches, fitness trackers and smart rings carry sensors that collect health information insurers can use. The metrics most relevant to insurance are:

• Sleep patterns: duration, quality and cycles (deep sleep, REM) as general health indicators.
• Respiratory rate: breaths per minute.
• Blood oxygen levels (SpO2): a signal associated with risks like sleep apnea.
• Stress levels: estimated from heart rate variability.
• Blood pressure: relevant to heart disease and hypertension risk.
• Glucose levels: continuous glucose monitoring, relevant to diabetes management.
• Location and movement data: GPS-based driving behavior for auto insurers.

For insurers, these data types support better risk assessment and earlier outreach, and can lead to lower premiums for policyholders who maintain healthy behaviors. ROOK moves and standardizes the data; it does not diagnose or replace clinical judgment.

Wearables give insurers four main benefits:

• Improved risk assessment: ongoing health data refines risk models for personalized products.
• Faster underwriting: wearable data provides health metrics without waiting for separate exams.
• Customer engagement: rewards programs encourage healthier habits.
• Personalized plans: wearable data supports custom health plans and more accurate premium pricing.

Challenges around data privacy, regulation and access to technology must be addressed for responsible use.

• Personalized policies: plans tailored to daily health metrics, rewarding healthy behaviors with lower premiums.
• Continuous risk assessment: insurers could adjust coverage based on ongoing health data, such as irregular heart rhythm notifications from devices.
• Mental health tracking: wearables may add mental wellbeing signals to health profiles.
• Environmental exposure data: future devices could measure exposure to pollution or UV rays.

Wearables help insurers shift from reactive to proactive health management and promote healthier lifestyles.

FDA review matters because wearable features marketed as medical devices, such as ECG, must be cleared or approved by the FDA as safe and effective, and that review lends credibility to the data insurers rely on for personalized plans and premium calculations.

Wearables now go beyond smartwatches and fitness trackers: smartphones, earbuds and smart glasses also track signals from heart rate to stress levels. These devices open new possibilities for insurance:

Wearables give insurers personalized policies, improved risk assessment and greater customer engagement, and new data types will keep expanding what insurers can offer.

Continue with Wearable Series Vol. 2 on insurance, or read how insurers use wearable data in insurance underwriting.