When the world gets closer.

We help you see farther.

Sign up to our expressly international daily newsletter.


Insurance Deductions For Using Health-Monitoring Apps, Risks And Rewards

Generali will be Europe's first insurer to link use of personal digital applications and 'big data' to insurance rates. But in Germany, fears about privacy and 'atomization' of insurance.

Nike FuelBand is among the most popular devices driving the so-called "quantified-self" trend.
Nike FuelBand is among the most popular devices driving the so-called "quantified-self" trend.
Anne-Christin Gröger

COLOGNE — A healthier diet, exercise, better living. Who wouldn’t want that? In contrast to the complacent masses, there is that small group of fitness-obsessed people who really do try and work on a perfect version of themselves, daily, conscientiously, verifiably.

These are also the ideal clients for insurance companies. To meet their goal of a better me, self-optimizers even voluntarily let themselves be monitored.

And now – the first major insurer in Europe to do so – the Generali Group will be controlling client fitness, lifestyle and nutrition electronically. For this so-called telemonitoring the company is cooperating with the South African insurer Discovery, which developed the Vitality health program that rewards clients with coupons, gifts and discounts if they maintain a healthy lifestyle. And it is verified by individual digital monitoring.

Consumers who opt for Generali’s new life or health insurance model have to provide the company with regular information about their lifestyle. That works with the help of an app that documents check-up appointments, counts walking steps, measures sports activities. Healthy nutrition also is part of the package.

"This allows us to strengthen our ties to our clients," Generali CEO Mario Greco told investors recently. "We also influence their behavior, and healthier clients are better for us."

In a first step, policy holders who behave in healthly ways get coupons for travel and a fitness studio. The next step is premium reductions. The new policies should be available in Europe within the next 12 to 18 months.

Generali is thus taking a big step in the use of personal client information or "Big Data." In the same category are attempts on the part of insurers to get information about driver behavior with the help of black boxes in cars and turn it into a point system that would impact policy pricing. In privacy-conscious Germany client interest has lagged behind the high demand registered so far in Italy and the UK.

In addition to Generali, Allianz, Axa and other insurers are working on similar projects. They are promising clients to help them as they pursue a healthier lifestyle. All the companies stress that they only use data that clients give them freely. The companies want to get to know their clients as precisely as possible so they can offer individual rates.

Risks and rewards

The thinking is that people who follow a healthy lifestyle cost the insurers less money. In return they will receive premium reductions. The opposite also holds true: whoever takes more lifestyle risks pays more. Long-term, that’s the greatest risk of the new system: whoever is unwilling to share such information about themselves with the insurer will eventually be bound to pay considerably more for insurance.

One of the pioneers of the new system is the American health insurer United Healthcare. For three years it has been offering clients a discount if they take a specific number of steps daily and can prove it. Generali is now following a similar path.

Consumer-protection advocates are skeptical. "I am very critical of the idea that policy holders provide individual information to receive discounted offers," says Peter Grieble of the Verbraucherzentrale (consumer advice center) Baden-Württemberg. "The client doesn’t know how his data is going to be processed by the company and who has access to it."

It should be noted however that already now private health insurers have a comprehensive overview of each client’s state of health in the form of medical bills and prescriptions.

Individualized rates risk undermining insurance's most basic principles. Insurers balance various risks out across many clients and over time. That is the core of the business. With individualized rates the companies are trying to attract the "best" risks in the hopes that the competition will have to deal with the others.

Despite the advertised discounts, the companies aim is to make bigger profits. Felix Hufeld, head insurance supervisor at Germany's Federal Financial Supervisory Authority BaFin, takes a critical view of the new possibilities for data evaluation.

Speaking at a recent Suddeutsche Zeitung conference in Cologne, Hufeld said: "If we follow the thought through to its logical end, this could lead to the atomization of the collective."

You've reached your limit of free articles.

To read the full story, start your free trial today.

Get unlimited access. Cancel anytime.

Exclusive coverage from the world's top sources, in English for the first time.

Insights from the widest range of perspectives, languages and countries.


What's Spoiling The Kids: The Big Tech v. Bad Parenting Debate

Without an extended family network, modern parents have sought to raise happy kids in a "hostile" world. It's a tall order, when youngsters absorb the fears (and devices) around them like a sponge.

Image of a kid wearing a blue striped sweater, using an ipad.

Children exposed to technology at a very young age are prominent today.

Julián de Zubiría Samper


BOGOTÁ — A 2021 report from the United States (the Youth Risk Behavior Survey) found that 42% of the country's high-school students persistently felt sad and 22% had thought about suicide. In other words, almost half of the country's young people are living in despair and a fifth of them have thought about killing themselves.

Such chilling figures are unprecedented in history. Many have suggested that this might be the result of the COVID-19 pandemic, but sadly, we can see depression has deeper causes, and the pandemic merely illustrated its complexity.

I have written before on possible links between severe depression and the time young people spend on social media. But this is just one aspect of the problem. Today, young people suffer frequent and intense emotional crises, and not just for all the hours spent staring at a screen. Another, possibly more important cause may lie in changes to the family composition and authority patterns at home.

Firstly: Families today have fewer members, who communicate less among themselves.

Young people marry at a later age, have fewer children and many opt for personal projects and pets instead of having children. Families are more diverse and flexible. In many countries, the number of children per woman is close to or less than one (Singapore, Taiwan, South Korea, Hong Kong among others).

In Colombia, women have on average 1.9 children, compared to 7.6 in 1970. Worldwide, women aged 15 to 49 years have on average 2.4 children, or half the average figure for 1970. The changes are much more pronounced in cities and among middle and upper-income groups.

Of further concern today is the decline in communication time at home, notably between parents and children. This is difficult to quantify, but reasons may include fewer household members, pervasive use of screens, mothers going to work, microwave ovens that have eliminated family cooking and meals and, thanks to new technologies, an increase in time spent on work, even at home. Our society is addicted to work and devotes little time to minors.

Keep reading...Show less

You've reached your limit of free articles.

To read the full story, start your free trial today.

Get unlimited access. Cancel anytime.

Exclusive coverage from the world's top sources, in English for the first time.

Insights from the widest range of perspectives, languages and countries.

The latest