Parks Associates: Consumer Willingness to Share Health Data for Insurance Discounts

In an era where wearable devices and other internet-based medical gadgets are becoming increasingly prevalent, insurance companies have adjusted their strategies accordingly, claiming that users can obtain insurance discounts by sharing their personal health data. How do consumers view this seemingly attractive new strategy? Recently, Parks Associates released its latest digital health research report, Digitally Fit: Products and Services for Connected Consumers, which investigated consumer acceptance of this “share-for-discounts” approach.

The insurance company's strategy has been welcomed by some consumers.According to the aforementioned report, the proportion of users willing to “share data for discounts” varies by device type: 42% for digital pedometer users, only 26% for sleep quality monitor users, and 35% for smartwatch users.

The Parks Associates report also assessed consumers’ willingness to share personal data generated by smart medical devices, as well as the potential of various incentive measures to enhance their willingness to share. This is particularly relevant given that global revenue from connected fitness trackers is projected to increase from over $2 billion in 2014 to $5.4 billion in 2019.

Furthermore, it explores privacy concerns surrounding data sharing that are of public interest, as well as the level of safeguards required to alleviate user apprehensions.

“Monetary incentives are generally regarded as the most powerful mechanism for eliciting consumer response, but most consumers of connected health devices are not yet prepared to share their health data in exchange for discounts on services or products,” added Jennifer Kent, Director of Quality and Product Development Research at Parks Associates.More consumers are willing to share their personal data in order to resolve device issues, receive better usage recommendations, and ensure they can fully enjoy the benefits of the product. For them, these incentives are clearly more appealing than monetary rewards.”

Other findings from Parks Associates’ internet research include:

• 50% of U.S. broadband households use online health tools to communicate with their physicians, access personal health data, or fill prescriptions;




• By 2019, smartwatch sales will exceed 1 million units;




• By 2018, more than 80% of U.S. mobile phone users will be on 4G LTE;




• 19% of smartphone users find flagship health apps that aggregate data from all relevant applications highly appealing.

“Combining an open API strategy to access consumer health data streams makes partnerships that jointly enhance business value and end-user value more viable,” said Kent. “However, when evaluating partners, healthcare companies must prioritize consumer privacy. Research by Parks Associates found that 35% of U.S. broadband households are highly concerned about the potential leakage of their personal health information.”

Compiled by Chen Xin | Edited by Mo Renying