Wearables and PMI Will Smartwatch Data Lower Premiums
As an FCA-authorised broker that has helped arrange over 900,000 policies of various kinds, WeCovr is at the forefront of the insurance market. We see first-hand how technology is changing the landscape, and this guide explores how wearable tech is shaping the future of private medical insurance in the UK.
The role of health trackers in future UK insurance
The smartwatch on your wrist or the fitness band you wear to the gym does more than just tell the time or count your steps. It's a sophisticated health monitor, quietly collecting data on your heart rate, sleep patterns, and activity levels. This explosion of personal health data has led to a tantalising question for millions of UK consumers: can this information lead to cheaper private medical insurance (PMI)?
The answer is complex. While we are not yet at a stage where your insurer sets your premium based on your daily step count, the worlds of wearable technology and private health cover are rapidly converging. This article will explore exactly how insurers are using this data today, the potential for the future, and what it all means for you when choosing a policy.
What Exactly Are Wearable Health Trackers?
Wearable health trackers are electronic devices worn on the body that monitor and record personal health and fitness data. They have become incredibly common, with 2023 data from the Office for National Statistics (ONS) showing that around 36% of adults in Great Britain now use a smartwatch or fitness band.
These devices have evolved from simple pedometers into powerful health-monitoring tools.
Commonly Tracked Metrics:
| Metric | What It Measures | Why It Matters for Your Health |
|---|---|---|
| Steps & Activity | Daily steps, floors climbed, and active minutes. | A key indicator of general physical activity and cardiovascular health. |
| Heart Rate | Beats per minute (BPM), both resting and during exercise. | A low resting heart rate can signify good cardiovascular fitness. |
| Sleep Tracking | Duration and quality of sleep, including stages like Deep and REM. | Poor sleep is linked to numerous health issues, from stress to heart disease. |
| Heart Rate Variability (HRV) | The variation in time between each heartbeat. | A higher HRV is often a sign of good recovery, resilience to stress, and better fitness. |
| Blood Oxygen (SpO2) | The percentage of oxygen in your blood. | Can help identify potential respiratory issues, although not a diagnostic tool. |
| ECG (Electrocardiogram) | The electrical activity of your heart. | Can detect signs of atrial fibrillation (AFib), a common heart rhythm problem. |
These metrics, once only available in a clinical setting, are now accessible 24/7, providing a continuous, long-term picture of your general wellbeing.
How UK PMI Providers Currently Use Wearable Data
Right now, UK insurers are not using your raw wearable data to calculate your initial premium. Instead, the primary use is for wellness and rewards programmes.
These are opt-in schemes designed to encourage healthier behaviour by rewarding you for being active. The logic is simple: a healthier, more active customer is less likely to make a claim, which is good for both you and the insurer.
Vitality is the most well-known pioneer in this space. Their programme is a clear example of how this works:
- Link Your Device: You connect your Apple Watch, Garmin, or Fitbit to the Vitality app.
- Earn Points: You earn "Activity Points" for achieving goals, such as walking 10,000 steps, completing a gym workout, or raising your heart rate for a set period.
- Unlock Rewards: These points translate into tangible benefits like weekly cinema tickets, free coffee, discounts on healthy food at Waitrose, and even significant reductions on the cost of a new Apple Watch.
Crucially, this is about engagement, not underwriting. It’s a value-added benefit that sits on top of your core health insurance policy. Other major providers have also entered this space, though often with less comprehensive offerings.
| Provider | Programme Name / Feature | How It Works | Example Rewards |
|---|---|---|---|
| Vitality | Vitality Programme | Points-based system for daily activity, workouts, and health checks. | Weekly coffee/cinema, Apple Watch discounts, Amazon Prime. |
| Aviva | Aviva Wellbeing App | Offers health and wellbeing support, often including discounts on trackers and gym memberships. | Discounts at various fitness and wellbeing brands. |
| Bupa | Bupa Touch App | Provides access to health information, virtual GP services, and sometimes wellbeing offers. | Focuses more on digital health access than activity rewards. |
These programmes are a fantastic way to get more value from your policy, but they don't directly influence the base premium you are quoted when you first apply for cover.
The Big Question: Will My Smartwatch Data Directly Lower My Premiums?
This is the key question for many consumers. While the short answer is "not yet for most people", the long answer reveals why this is such a complex issue.
To understand why, we must first revisit a fundamental principle of private medical insurance in the UK: its purpose.
Important: Standard private health cover is designed to cover the cost of treatment for acute conditions that arise after your policy begins. It does not cover pre-existing conditions (illnesses you've had symptoms or treatment for before) or chronic conditions (long-term illnesses like diabetes or asthma that require ongoing management).
Your premium is calculated based on risk factors like your age, location, and your medical history (through underwriting). Using real-time activity data to set these premiums presents several major hurdles for insurers:
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Data Privacy and GDPR: Health data is considered "special category data" under UK GDPR, meaning it has the highest level of protection. Insurers would need explicit, clear consent to use this data for pricing. Consumers are rightly concerned about how their data is stored, who has access to it, and for what purpose.
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Accuracy and Reliability: Is the data from a £30 fitness band as reliable as a £500 smartwatch? What happens if you forget to wear your device or the battery dies? An insurance contract needs to be based on solid, verifiable information, and consumer-grade wearable data isn't yet at a medical-grade standard.
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Fairness and Discrimination: This is perhaps the biggest barrier. Using activity data could inadvertently discriminate against certain groups.
- Older Individuals: May be less active or less tech-savvy.
- Individuals with Disabilities: May be physically unable to meet certain activity targets.
- Low-Income Earners: May work long, unsociable hours or have jobs that are physically demanding but don't register as "steps" (e.g., a delivery driver). The Financial Conduct Authority (FCA) would heavily scrutinise any model that could potentially penalise vulnerable customers.
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Correlation vs. Causation: Does walking 12,000 steps a day cause you to be healthy, or are you simply able to walk that much because you are already healthy? Actuaries need robust data that proves a direct causal link between a behaviour and a reduced risk of making a claim for an acute condition. The data is still too new for such long-term conclusions.
For these reasons, a future where your PMI premium fluctuates monthly based on your activity level remains distant. The focus, for now, is on rewarding positive behaviour rather than penalising a lack of it.
The Potential Future of Wearables and PMI
While direct premium setting is unlikely soon, wearable technology will undoubtedly play an even bigger role in private health cover. Here's what the future might hold:
- More Sophisticated Wellness Programmes: Expect programmes to move beyond just steps and heart rate. They could incorporate data on sleep quality and stress levels (HRV) to offer more personalised wellbeing advice and coaching through an app.
- Early Detection and Prevention: This is a hugely exciting area. A smartwatch that detects an irregular heart rhythm (a potential sign of AFib) could trigger an alert, prompting the user to seek a GP consultation—perhaps via a digital GP service included in their PMI policy. Early intervention can prevent more serious outcomes like a stroke. The NHS estimates AFib affects around 1.5 million people in the UK, so the potential impact is enormous.
- Post-Treatment Support: After surgery or treatment for an acute condition, an insurer could use wearable data (with consent) to monitor recovery. For example, tracking a patient's mobility and sleep quality after a knee replacement could help tailor their physiotherapy and rehabilitation plan.
- Streamlined Underwriting (for some): It’s conceivable that for young, healthy applicants, sharing a certified "health snapshot" from their wearable could one day allow them to bypass some of the more detailed medical questionnaires, leading to faster and potentially cheaper quotes.
At WeCovr, we are committed to helping our clients navigate these changes. We also provide all our PMI and life insurance customers with complimentary access to our AI-powered calorie and nutrition tracking app, CalorieHero, helping you take control of your diet and wellness from day one.
How to Choose the Right PMI Policy in a Tech-Driven World
With all this innovation, choosing the right policy can feel more complicated than ever. Here’s a simple, step-by-step approach.
1. Define Your Core Needs Before looking at wellness perks, decide what you need from the core insurance product.
- What level of cover do you want? Basic policies might only cover inpatient treatment (when you need a hospital bed), while comprehensive ones include outpatient consultations, diagnostics, and therapies.
- Do you want a choice of hospitals? Some policies have a limited list to keep costs down.
- What excess are you comfortable with? A higher excess (the amount you pay towards a claim) will lower your premium.
2. Compare the Whole Market Don't just go with the provider your friend has or the one with the flashiest TV advert. The best PMI provider is the one whose policy best matches your needs and budget. Look at:
- Outpatient limits
- Cancer cover specifics
- Mental health support
- The value of any wellness programmes
3. Understand Underwriting Options This is a critical choice that affects what you'll be covered for.
- Full Medical Underwriting (FMU): You disclose your full medical history. The insurer then explicitly lists any conditions that will be excluded from cover. It's clear from the start.
- Moratorium Underwriting (MORI): You don't disclose your full history. Instead, the policy automatically excludes treatment for any condition you've had symptoms of, or sought advice or treatment for, in the 5 years before your policy started. These exclusions can be lifted if you remain symptom-free for a continuous 2-year period after your policy begins.
4. Use an Expert PMI Broker Navigating this landscape alone can be daunting. An independent broker like WeCovr can be an invaluable ally.
- We're Experts: We live and breathe the UK private medical insurance market and understand the nuances of each provider's policy.
- We're Impartial: Our goal is to find the best policy for you. We'll compare policies with and without wellness benefits to match your preferences.
- It Costs You Nothing: Our service is free to you, as we are paid a commission by the insurer you choose.
- Extra Value: When you buy PMI or life insurance through us, we can often provide discounts on other types of cover you might need.
The integration of wearables into private health insurance is an exciting development, shifting the focus from simply treating illness to proactively promoting wellness. While it may not slash your premiums overnight, it offers a fantastic opportunity to get more value from your cover and take an active role in your long-term health.
Can my insurer force me to share my smartwatch data?
Do I have to declare my smartwatch health data when applying for PMI?
What happens if I get a policy with a wellness programme and then stop using my wearable?
Does WeCovr recommend policies with wellness programmes?
Ready to explore your options? Let our expert advisors help you compare the UK's leading private health cover providers and find a policy that fits your life and budget.
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Related guides
Why private medical insurance and how does it work?
What is Private Medical Insurance?
Private medical insurance (PMI) is a type of health insurance that provides access to private healthcare services in the UK. It covers the cost of private medical treatment, allowing you to bypass NHS waiting lists and receive faster, more convenient care.How does it work?
Private medical insurance works by paying for your private healthcare costs. When you need treatment, you can choose to go private and your insurance will cover the costs, subject to your policy terms and conditions. This can include:• Private consultations with specialists
• Private hospital treatment and surgery
• Diagnostic tests and scans
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Your premium depends on factors like your age, health, occupation, and the level of cover you choose. Most policies offer different levels of cover, from basic to comprehensive, allowing you to tailor the policy to your needs and budget.
Questions to ask yourself regarding private medical insurance
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Benefits offered by private medical insurance
Private medical insurance provides numerous benefits that can significantly improve your healthcare experience and outcomes:Faster Access to Treatment
One of the biggest advantages is avoiding NHS waiting lists. While the NHS provides excellent care, waiting times can be lengthy. With private medical insurance, you can often receive treatment within days or weeks rather than months.
Choice of Consultant and Hospital
You can choose your preferred consultant and hospital, giving you more control over your healthcare journey. This is particularly important for complex treatments where you want a specific specialist.
Better Facilities and Accommodation
Private hospitals typically offer superior facilities, including private rooms, better food, and more comfortable surroundings. This can make your recovery more pleasant and potentially faster.
Advanced Treatments
Private medical insurance often covers treatments and medications not available on the NHS, giving you access to the latest medical advances and technologies.
Mental Health Support
Many policies include comprehensive mental health coverage, providing faster access to therapy and psychiatric care when needed.
Tax Benefits for Business Owners
If you're self-employed or a business owner, private medical insurance premiums can be tax-deductible, making it a cost-effective way to protect your health and your business.
Peace of Mind
Knowing you have access to private healthcare when you need it provides invaluable peace of mind, especially for those with ongoing health conditions or concerns about NHS capacity.
Private medical insurance is particularly valuable for those who want to take control of their healthcare journey and ensure they receive the best possible treatment when they need it most.
Important Fact!
We can look at a more suitable option mid-term!
Why is it important to get private medical insurance early?
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