Your Fitbit data can now save you money on insurance

Insurance companies want to make sure you pay for your insurance for as long as you can, by helping you stay healthy for longer.

It's kind of a win-win situation.

John Hancock Life Insurance now offers its customers FitBit fitness wearable devices to track their exercises.

For those hitting their step and activity goals, the insurance company will offer discounts on insurance premiums and enable customers to save up to 15 per cent.

However, the data collected by FitBit will be transferred to the insurance company, so there will be no lying if you skipped leg day!

The data will be used to rank the users’ performance and trigger a rebate.

Active clients will be able to collect points which can be traded for various discounts, like cheaper hotel stays and Amazon vouchers.

The new approach to insurance, in which you give out personal information for discounts, might shake up a stagnant insurance market, thinks John Hancock's president, Michael Doughty.

"It has been a slow to no-growth industry for a long time," he told the Times. "It is crying out for innovation and for someone to try to reinvent the product to make it more relevant,” he said for The New York Times.

Anna Slomovic, lead research scientist at the Cyber Security Policy and Research Institute at George Washington University and a former chief privacy officer at Equifax and Revolution Health sees a privacy issue with this approach. Companies are invading every private aspect of people’s lives:

“All of a sudden, everything you do and everything you eat, depending on which bits of the information they collect, is sitting in someone’s database,” she says.

John Hancock, however, says the data would not be sold to anybody.