The insurance company is working with a group of scientists in order to identify which drivers are “most at risk” for developing chronic diseases and accidents. Using this information, Allstate can decide whether or not to insure them, thereby reducing the number of incidents caused by such people.
The “allstate address” is a company that provides insurance for drivers. They have an advertisement campaign that encourages drivers to be careful and take care of their health.
You may save money on auto insurance if you let Allstate Corp. ALL -0.07% monitor your driving. You may save money on life insurance if you let John Hancock monitor your diet and activity. The two insurers are now collaborating on the premise that safe drivers live longer.
Because of the cost, the insurers will be able to monitor a lot of what you do.
Hancock distributes Vitality branded life-insurance plans that give premium discounts of up to 25% for healthy-living practices like as exercising, eating nutritious meals, and obtaining mammograms. It is owned by Manulife Financial Corp. MFC -2.00 percent.
Allstate’s Drivewise initiative monitors drivers’ speeding, braking, and other driving habits using smartphone apps or implanted equipment in their cars. It also provides premium discounts of up to 25%.
Policyholders with Vitality who achieve safe-driving status in the Drivewise program will now receive points toward a premium discount at Hancock. The partnership makes sense, according to the two carriers, since automobile accidents are a primary cause of mortality for people of all ages. The relationship does not work in the other direction, so drivers who maintain healthy behaviors will not get credit toward an Allstate discount.
Allstate claims to utilize its data to provide feedback to consumers so that they may improve their driving skills.
(Bloomberg News/Christopher Dilts)
When motor-vehicle fatalities increased in the first half of 2021, when many Americans returned to the roads, Brooks Tingle, president and chief executive of John Hancock Insurance, said he was encouraged to launch an effort with Allstate.
Mr. Tingle stated, “I observed people driving like idiots.” “I thought to myself, ‘This is insane.’” Excessive speed, inattentive driving, and alcohol impairment have all been linked to crashes, according to studies.
Officials at Allstate were intrigued. “As an industry, we need to do a better job of engaging clients before they are in a vehicle accident, not simply waiting until they are in one,” said Jess Merten, president of Allstate Financial Products. “Hancock is doing the same thing, not simply waiting till there’s a death claim.”
Both Allstate and Hancock are hoping that their clients would be enticed to buy their plans from the other. According to Mr. Tingle, the Vitality program has a six-figure number of users, while Allstate’s Drivewise telematics program has 1.75 million drivers registered.
Both systems have a gaming component that allows skilled drivers and exercisers to earn gift cards and other prizes. As a result, policyholders are more engaged and having a good time. Mr. Tingle stated of how life insurance is often promoted, “It would be difficult to conceive of a product that people have less involvement with, receive less delight from ownership than life insurance.”
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For privacy concerns, some customers dislike these systems. Hancock can discover what meals they purchase, how frequently they exercise, and how their weight-loss efforts are doing since Allstate knows where and when its consumers travel.
Allstate claims to utilize the data to provide feedback to consumers in order to help them become safer drivers. The degree of information disclosed to the insurer is entirely up to the consumer at Hancock. Many individuals feel comfortable sharing since, “as anybody who has gone through the process of getting life insurance knows, the insurer already knows nearly everything about your medical and financial background” through the application process, according to Mr. Tingle.
Customers’ personal information is not sold, according to the firms.
Mr. Tingle believes it will take four or five years of more data to determine if Hancock’s seven-year commitment to promote better health translates into longer-living—and consequently more profitable—policyholders. Insurers claim that telematics systems, which have been operating for almost two decades, have shown to be an effective tool to determine vehicle rates.
Leslie Scism can be reached at [email protected].
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