WTW has partnered with UK-based health data analytics firm Klarity to launch a new life insurance underwriting model powered by wearable technology and predictive analytics. The move could shift how insurers assess mortality risk and price products.
The new model aims to address shortcomings in traditional underwriting, which often relies on indicators such as cholesterol, blood pressure, BMI, tobacco use and family history. Those measures provide only a snapshot of health and can misclassify applicants, WTW said. By contrast, the Klarity tool incorporates data collected through wearables like smartwatches, capturing indicators such as resting heart rate, recovery rate, sleep quality and activity levels.
Using 12 years of health data spanning more than 6 million life years, Klarity developed a scoring system that produces individual mortality risk profiles. WTW tested the model on US data from the National Health and Nutrition Examination Survey and found it provided more granular segmentation than conventional methods, enabling insurers to align pricing more closely to actual risk.
Mary Bahna-Nolan, senior director at WTW Insurance Consulting & Technology, said the model demonstrates how predictive analytics and behavioral health indicators can “redefine” risk assessment. She noted the approach could pave the way for more personalized pricing and new customer engagement strategies.
For life insurers, the potential implications are significant. More accurate classification could reduce mispricing and mortality slippage within risk pools, easing pressure on margins. Insurers may also be able to design more tailored products for subsegments of customers, from healthier non-smokers who qualify for better rates, to individuals flagged as higher risk despite appearing standard under legacy criteria.
The model’s reliance on wearable data also points to an underwriting environment that is increasingly continuous rather than static. If adopted widely, this could change how policies are sold, with insurers rewarding real-time health behaviors rather than relying solely on historical indicators.
At the same time, challenges remain. Industry observers highlight privacy, data protection and regulatory scrutiny as key hurdles. Insurers will need to balance the benefits of deeper insight against potential pushback from customers wary of sharing personal health data.
The WTW-Klarity partnership reflects a broader shift in the life sector, where richer data and machine learning are being explored to refine mortality risk. Similar initiatives, such as the ForwardLiving program launched earlier this year to support younger adults with chronic health risks, show how insurers are experimenting with prevention, behavioral science and ongoing engagement as part of the underwriting process.
With underwriting margins tightening and customer expectations evolving, industry players say wearable-driven models may mark a step toward more individualized, technology-enabled life insurance. Whether customers and regulators embrace that shift may determine how fast it takes hold.
