Perhaps most important of all, participation will not affect eligibility or base rates. "Our underwriting practices are entirely separate from Vitality and will not change," he stated
So why did Hancock make this move? Tingle said it's "the right thing to do for our customers, our business and society." By incentivizing customers to maintain a healthy lifestyle, the insurer is plainly trying to help policyholders live longer, and therefore pay premiums for longer before receiving benefits. But in fairness, it does seem a win-win proposition.
"It makes wellness more accessible and helps Americans live longer, healthier lives," insisted Tingle. Moreover, he noted a significant shift from "infectious to lifestyle diseases," diseases that can be prevented or even reversed through healthy habits. "America’s health is at risk," he said.
Since its inception, the Vitality program has helped policyholders achieve some impressive milestones, he said. They've taken nearly twice as many steps as the average American and, in general, logged more than 3 million "healthy activities" such as walking, swimming and biking.
What happens to those who don't take advantage of the program, either because of lack of interest or because of a health change? Nothing, Tingle said. "The life insurance policy doesn’t change if an insured’s health changes. If someone has a policy with Vitality and their health changes, they may choose from a variety of ways to continue to participate in the program, or they may qualify for a waiver. Or they may simply choose not to participate in Vitality. They won’t lose anything except the chance to earn rewards."
Of course, this means that John Hancock is collecting a lot of personal data about its members. But for those concerned about civil liberties and privacy issues, Tingle responded, "Our customers can choose how little or how much data they share with us through Vitality. Their data is private. We do not sell it to third parties."
Whether or not this expansion proves successful remains to be seen. But if it does, you can bet other insurers will follow suit -- a tracksuit, swimsuit or business suit, to be determined.