You only sell life insurance one time, right? Wrong.
What would happen if you made it possible for your life insurance to become cheaper every month and even turn it into an addictive habit?
At the moment insurance companies do a thorough check when you contract a life insurance but afterwards as long as you pay the premiums the insurance company does not want to bother you again.
What would happen if they did? If you would agree with them to share your habits in exchange for them lowering the price of your insurance with optional extra insurances for sales when you need them.
Let’s explain this with an example. The risk of dying increases because of risky behaviour, abusive usage of mind controlling products like drugs and alcohol, stress, bad eating habits, lack of sleep, lack of physical exercise, driving irresponsibly, travelling to hostile places like war zones or unsafe areas in cities, etc. What if you start with an average risk profile and every time you do exercise, sleep more than 8 hours, go to see friends, etc. you earn points and every time you drive too fast, you go to a fast food chain, you get stressed, you did not go and visit family or friends in some time, you go paragliding, etc. you loose points. Based on your monthly score, your insurance goes up or down. There will be moments of time when you are weak. Your insurance might want to make you an offer, e.g. if you leave this fast food chain now and go to the salad bar around the corner than they will give you a 5% discount or a free fruit salad for desert. Your insurance will also be able to help you out when you need to, e.g. you are in a car shop would you like to have some custom insurance offer based on your behaviour and pay based on how much and how you drive your car? Do you want to be covered for an accident while skiing? Since you hardly cook at home we suggest that your risk of fire is greatly reduced so your house insurance will be cheaper but since you are hardly at home we suggest to install one of the following alarm systems to lower your risk of burglary otherwise we need to adjust for this risk…
All this was not technologically possible but thanks to innovations in Internet of Things, mobile sensors, Big Data, Cloud, wearables, etc. these new models can be implemented or will at least shortly be possible.
Of course there are legal and ethical questions to resolve and questions about if consumers want to give away more privacy in exchange for cost reductions. However whoever makes the first addictive insurance is very likely to lead in the coming years. Especially if personal weaknesses and inside knowledge can be translated into extra revenues. Perhaps we will see the first free life insurance for healthy active people in exchange for real-time information about your life and opportunities for sales when you are weak or need some other insurance.