One insurance company sees potential in incentivizing its customers to pursue healthier lifestyles. Through the Vitality program, John Hancock rewards policyholders for engaging in healthy behaviors like gym visits, purchasing healthy foods, tracking their sleep, and undergoing preventive health screenings. Participants accumulate points which convert to tangible benefits such as discounts on smartwatches, Amazon or Starbucks gift cards, hotel deals, savings in stores, and price reductions on fruits and vegetables.
“I’ve already got 5,400 points. I’m silver, almost approaching gold,” explained Matt Hudack, a financial planner and John Hancock policyholder, as he scrolled through his app.
As an enthusiast of the outdoors, Hudack appreciates discounts at REI. The program encourages healthier habits by allowing users to progress through tiers, from bronze to platinum.
A standout feature for Hudack is the digital prize wheel that he can spin after reaching activity targets.
“The spins are fun,”
he shared.
Changing the Focus of Life Insurance
John Hancock CEO Brooks Tingle highlights a shift in the company’s core approach. Historically focused on death preparedness, the company now emphasizes living and improving life quality.
“What we’ve done is literally turn that around. This is about living, and living better,”
Tingle stated.
The company’s strategy is straightforward: healthier clients live longer, pay premiums for a longer time, thus generating more profits.
“The longer we’re able to collect and invest the premiums, the more money we make,”
Tingle commented. This alignment benefits the company’s bottom line while promoting customer health.
Gamifying Health with Rewards
Cardiologist Dr. Dariush Mozaffarian, involved in developing the program’s dietary incentives, sees promise in its game-like structure.
“What’s exciting about gamification is it’s not just about the dollar amount, it’s about making it fun and exciting and having prizes,”
Mozaffarian stated. Research suggests such approaches maintain engagement and positively modify behavior.
Mozaffarian also assisted John Hancock in constructing food-related incentives, including discounts on fruits and vegetables. Studies indicate financial incentives can effectively promote healthier eating habits amidst prevalent diet-related diseases.
Complexities of Behavior Change
John Hancock’s Brooks Tingle reported promising early results to the House Ways and Means Subcommittee on Health. Participants of the Vitality program reportedly walk twice as many steps daily as the average American. Half of the members with high blood pressure achieved healthy ranges within a year. The company collaborates with businesses offering advanced screening tests, allowing members discounted access to early detection tests and MRI scans for hundreds of conditions.
Geriatrician Dr. Samir Sinha cautions the program is still early in determining its long-term impact on longevity and health.
“There’s not enough evidence right now to say that these sorts of programs are going to actually have the intended effect,”
Sinha noted but acknowledged the potential for ingraining lifelong healthy habits.
Financial Incentives and Behavioral Shifts
Offering lower premiums, up to 25% savings depending on program choice, serves as another incentive. This approach reflects practices already seen in auto insurance, where companies provide lower rates for safe driving behavior.
A New Perspective on Insurance
For Hudack, the program offers more than just financial benefits. As a financial planner, he finds life insurance a challenging topic due to its associations with mortality. Now, Vitality turns the conversation towards healthier living. Clients appreciate the shift from a reminder of mortality to a supportive tool for wellness. Hudack even dedicates staff to service Vitality clients, checking activity counters that reset each Monday morning—a prompt for renewed engagement.