Wearable ergonomic technology is gaining attention in the Insurtech industry for its potential to significantly reduce workplace injuries, which cost over $40 billion annually. Workers’ compensation insurance, influenced by various factors like payroll and industry classification, can benefit greatly from reducing expected losses, especially in high-risk industries. Recent surveys show that ergonomic wearables have already halved strain and sprain injuries and reduced lost time by 70% across various industries.
Despite the clear benefits, the adoption of wearable ergonomic technology faces hurdles. A major wearable tech company struggled to achieve its revenue goals, highlighting broader challenges like cost, incentives, and data privacy concerns from employees. To overcome these barriers, a coordinated approach involving Insurtechs, insurers, employers, and employees is essential. Innovative solutions like insurers offering premium credits for using wearables can incentivize adoption and align interests of all stakeholders.
The key to successful implementation lies in aligning incentives and providing education about the benefits of wearables. Insurers can play a pivotal role by internalizing the costs of adding wearable technology to their programs, benefiting from improved data and competitive pricing. This approach not only benefits employers through lower losses but also ensures better health outcomes for employees. Sharing financial benefits, like health dividends, with employees can foster trust and willingness to participate. Nationwide has already made strides in this direction, indicating a growing trend towards coordinated, tech-enabled workers’ compensation programs.