Should insurers tie premiums to AI signals from wearables?

Apple is rolling out an FDA cleared hypertension alert on Apple Watch. This makes consumer wearables feel more medical and turns heads in insurance. Real time signals promise better risk models, earlier intervention and closer customer ties (Tom’s Guide, 2025). Many carriers already want to move from claim payment to prevention, powered by data and AI (Capgemini, 2022). Programs like Discovery Vitality show that dynamic goals and small rewards can nudge people to be more active at scale (Discovery, 2025).

How far should this go. The closer data gets to the body, the higher the bar for governance and trust. In open app ecosystems there is a real risk of purpose drift and confusion about who uses what for which reason. The European Union is building rules for responsible data sharing and control by the user through the European Health Data Space and the Data Act. These rules stress purpose limits and safeguards for reuse in the public interest (European Commission JRC, 2025). For underwriting this means strong duties for transparency, fairness and oversight.

There is also a method risk. Activity and sleep are context sensitive. Scores can encode social bias. Evidence on direct links to health outcomes is mixed and still evolving. Even a recent study on WHOOP and insurance impact reads like early stage evidence rather than firm proof (Jani et al., 2025). New sensor features should be treated as hypotheses, not facts.

A practical stance. First, use wearables only for voluntary incentive programs. No use in hard pricing or denial until explainability, fairness testing and data chain governance are proven at scale. Second, build clear consent, simple language, and easy data portability. Third, publish evidence from real programs so customers and regulators can judge impact (Capgemini, 2022; Discovery, 2025; European Commission JRC, 2025).

Bottom line. Prevention yes. Price punishment no. Without trust by design wearable AI will backfire. With clear guardrails it can be a strong tool for wellness and engagement.