In the world of Internet of Things (IoT), a new innovation is changing the worldwide insurance industry. We are talking about the personalization of insurances. About 80% of all the insurance consumers are looking for personalized offers and pricing, so that they don’t have to pay for the risk of others (Accenture, 2015). You may be familiar with the ‘good driver’ insurance discount, where your driving behavior is rated by a digital system. If the results are in your favor, you will get the ‘good driver’ status and pay a lower insurance fee for your car. Essentially, the same principle is now being applied to your body instead of your car.

Initially, the wearable technology industry (which consists primarily of smartwatches and fitness trackers) didn’t experience the booming growth that was speculated by some. But now it seems that the consumer is finally embracing the new technology, with a growth of 60,9% in smartwatch shipments in Q2 of 2017 (Williams, 2017). But it’s not just the consumer which seems to be more interested, as the insurance industry is also starting to adopt to wearable technology. Insurance companies are starting to connect smartwatches and fitness trackers with their health insurance policies to offer a more personalized insurance.

But how does it work? Big companies in the wearable technologies like Fitbit, Garmin and Misfit are teaming up with wellness and insurance companies which are involved in the health insurances of the working population. Their fitness tracker functions are logging exercise data, diet plans, goal achievements and even sleep quality (Sisolak, 2017). Although these functions are just part of nearly every wearable, the key difference in the health insurance application is external reporting of the data. Usually, meeting your goals initiates a transfer of data to your insurance company, converting the goal achievements to a discount or receiving a number of credits accordingly. Examples of goals are taking 10,000 steps a day, getting 7 hours of sleep on average or running 5 miles every week. The exact reward of these fitness goal achievements depends on the insurance company. Some companies choose to give you credits to save for Walmart coupons, while others choose for a direct discount on your monthly health insurance (Eastwood, 2016).

Currently, more and more insurance companies around the world are trying to find a suitable link for fitness trackers and their insurance policies. Although these applications do increase personalization, the increasing amount of concerns about data privacy should not be overlooked. Insurance companies are receiving personal data about your lifestyle, which could lead to another source of data tracking for companies. Privacy concerns are increasing in parallel with the growth of the health tracking of insurance companies, so one point of concern of health tracking should certainly address and overcome the privacy issues. What do you think? Is this new application of wearable technology the next disruption in the world of health insurances or is it a hyped attempt to retrieve more personal data for the corporate world?

References:

Accenture. (2015). Satisfy the Craving for Insurance Personalization. Retrieved from https://www.accenture.com/t20161113T203144Z__w__/us-en/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Strategy_7/Accenture-Strategy-Insurance-Personalization-Infographic-1.pdfla=en#zoom=50

Eastwood, B. (2016). How Wearing a Fitness Tracker Can Lower Your Insurance. Retrieved from https://www.tomsguide.com/us/fitness-trackers-insurance,news-23053.html

Sisolak, P. (2017). Can a fitness tracker help you save on health insurance? Retrieved from https://www.policygenius.com/blog/can-a-fitness-tracker-help-you-save-on-health-insurance/

Williams, B. (2017). Smartwatches leave fitness trackers in the dust in the growing wearable market. Retrieved from http://mashable.com/2017/08/31/smartwatches-take-over-wearable-market/#Iko6hJt3MOqD

Start-up Ultrahaptics, based in Silicon Valley, is introducing the sense of touch into the digital environment.  By using ultrasound vibrations and algorithms they have managed to simulate tactile sensations. This enables users to touch, feel and interact with invisible virtual objects which are floating mid-air. Will this be the next big and disruptive innovation, as it has so many possible applications?

Tom Carter and Sriram Subramanian founded Ultrahaptics back in 2013 (Ultrahaptics, 2017). Initially, it was a research project of Tom Carter, but together with his computer-science professor Subramanian they developed a real company and technology out of it. The idea was already decades ago, but the software part used to be too difficult or too restricted at the time (Kahn, 2016). But how does it work?

Essentially, it is a combination of complex algorithms and ultrasound frequencies. Ultrasound frequencies are audio frequencies that lie beyond the range of human hearing, which is usually limited to an upper range of 20kHz (Schroeter, 2017). Ultrahaptics uses a frequency of 40kHz, but modulates it at a frequency that is within the perceptual range of feeling (generally very low frequencies). This modulation can be set to the preferences and requirements of a button, for example, to create different sensations. The feeling sensation is seemingly very similar to that of a puff of air (Ziegler, 2016). The software, in turn,  determines the focal point of the button by programmed three-dimensional coordinates.

While haptic technology, mostly mechanical, has been around for some time, touchless haptic technology can provide a new range of applications able to change our lives drastically. For example, the technology is already being implemented in the control systems of Jaguar Land Rover (Kahn, 2016). Other potential disruptive applications include technology accessibility for the deaf and blind, quicker and easier access to control personal devices (e.g. smartphones), more hygienic controlling of sanitaries and generally a more intuitive way to control systems.

For now, touchless haptics are still in the developing phase. However, the haptic technology industry is expected to be worth over 22 billion USD by 2022. Together with a substantial amount of funding and the endless amount of possibilities it brings, the prospects of Ultrahaptics are very promising. What do you think? Are touchless haptics the next big thing or are there too many limitations?

References:

Ultrahaptics, (2017). Retrieved September 22, 2017, from https://www.ultrahaptics.com/

Kahn, J. (2016, February 3). Meet the Man Who Made Virtual Reality ‘Feel’ More Real. Retrieved September 22, 2017, from https://www.bloomberg.com/news/features/2016-02-03/uk-startup-ultrahaptics-is-making-virtual-reality-feel-more-real

Schroeter, J. (2017, March 9). The Future of Touchscreen is.. Touchless. Retrieved September 22, 2017, from https://technicacuriosa.com/2017/03/09/the-future-of-touchscreen-is-touchless/

Ziegler, C. (2016, January 8). Touchless haptic feedback completely freaked me out at CES. Retrieved September 22, 2017, from https://www.theverge.com/2016/1/8/10738792/harman-touchless-ultrasonic-haptic-feedback-ces-2016