WEARABLE TECHNOLOGYIn the Life and Health Insurance Industry

Imperial College Business School27.07.2014

Maximillian Doelle Michelle GunawanOpeoluwa Adeyemo Yizhi WuYang Gao Orkhan Ahmadov Martin Knutli

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Table of Contents

5 Background

6 The New Business Model7 Proposed Target Market

8 Study8 Survey and Results8 Pilot Study9 Cost9 Other Tests

10 Recommendations and Next Steps

10 Further Development of the Policy

10 Recommendations

11 References

BACKGROUND

NEW BUSINESS MODEL

STUDY

RECOMMENDATIONS

REFERENCES

5 Executive SummaryEXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

THE Life and Health insurance market in the UK has seen little innovation in the past years and is considered to be ripe for disruption (blog.hbs.com 2014). One

of the factors contributing to the disruptive potential is the continuous dissimilation of traditional markets with recent examples such as Uber and Nutmeg. This is largely driven by the empowerment of consumers through technology in which a rise in self assessment technology (e.g. activity trackers) for the average consumer is observed.

The scope of the project is limited to health and life insurance market in the United Kingdom. The focus has been on two areas: First, the potential of wearable technology in the Life and Health insurance market and secondly, the consumer’s willingness to pay for data insights.

A business model was proposed, where the target market are young, active, digital natives. The more active you are, the better will the terms of your insurance be. By voluntarily monitoring and reporting your activity, through an activity tracker such as the Misfit Shine , the insurer can obtain a real time overview of your health. Not only does this insurance model reduce the general risk of the insurance company, but it also reduces the insurance holder’s premium, as well as incentivising healthy living among its holders.

To address the uncertainty around wearable technology, a survey was conducted to gauge the consumers’ view on the proposed business model. The results generally support the idea of developing a scheme where

wearable technology is involved. It also brought forward a few issues necessary to resolve before the business model can be rolled out. In order to assess the potential of wearable technology in the insurance market, a study has been designed that allows to test the main hypothesis which need to be validated or refuted in order to build the foundation for a successful business model. The hypotheses include amongst others: What are the effects and impacts of monetary and/or social incentives on the activity level of consumers? How do consumers perceive wearable technology? Where is the incentive indifference point for consumers to participate in the proposed scheme? Through use of rigorous statistical techniques, like causation analysis, correlation analysis and regression, high value results can be generated.

With the results of the study, it is possible to craft a sustainable business model taking advantage of the unique potential of the technology. We estimate the cost to be around £150.000 - £175.000 with contingencies.

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BACKGROUNDIn the present consumer electronics market, wearable technologies have evolved through various sensors that can trace and monitor physical and bodily conditions, including pedometer, accelerometer, gyroscope, heart rate sensor, altimeter, thermal meters, etc (Euromonitor International, 2013). In result, different activity trackers have been created with a number of tracking functions, i.e. steps taken, calories burned, sleeping time and quality, stress level, heart rate and so on.

In the insurance industry, data and technology can lead to products being priced more accurately through observing and analysing data from wearables to assess insurance risk factors. Through this, it can be sold in a more individual manner, thereby enhancing customer experience (Callaway and Rozar, 2013). Wearable technology has been used in group insurance schemes which turned to be beneficial for the company as well as its employees. For example, BP America in partnership with StayWell distributed 24,000 FitBits across the company. The FitBit tracks steps covered against a set target which has helped BP to achieve lower health care premiums, thus bringing down BP America’s health care spending by 3.5% and an ROI of $3:1 (StayWell, 2014).

Further, US-based Vitality Group created ‘The Vitality Programme’ to optimize health insurance plans by encouraging healthier lifestyles. Vitality members are allowed to choose from a variety of activity trackers which link to Vitality Active app. Members earn Vitality points for walking, burning calories and maintaining a heart rate within a specific range; the more points earned, the more rewards (PruHealth, 2014) are received. Based on the data released in April 2014 of a three-year study of 740,000 users of the programme, revealed that activity tracker users reduced health risk factors by 22% and had 16% lower hospital costs than those of inactive people (The Vitality Group, 2014).

Given recent data by Competition and Markets Authority (2014), out of the 11% of UK population who own private medical insurance, 78% of these were company sponsored. This trend corroborates the approach to target group purchases and/or employer-sponsored insurance to drive uptake for commercial viability of wearables in the early period and subsequently, individuals.

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THE NEW BUSINESS MODELAs technology is being vastly adopted in our daily lives, a new breed of customers is slowly emerging called the ‘digital natives’ (PwC, 2013). According to PwC, these customers will push businesses to add value through digital channels through improving customers’ e-commerce experience and utilizing big data for a more complex but accurate digital identity of customers. Particularly for insurance companies, there is an opportunity to be closer to customers by creating more consumer-centric products and policies. Customers’ buying experience can be tailored individually through providing customised solutions. This trend will allow insurance companies to serve markets that generally have received less focus; that is the younger and less wealthy people (PwC, 2013).

In response, the following insurance policy elaborated was designed. Not only does it use wearable technologies such as Nike+ band, Jawbone or Misfit Shine, but it also encourage holders to lead a healthy life. The policy allows holders to have more control over their premium by meeting health goals to accumulate points. These points will over time generate personal returns, such as reductions in the insurance premium. Furthermore, consumers will be able to customize a policy based on their needs as well as get an immediate quote for premium.

The insurance holder will be able to choose between various combinations of cover and the term of the insurance: life cover, serious illness cover, income protection cover or additional covers like family income cover, education cover or disability cover. This determines their initial premium.

Initially, insurance holders will benefit from lower than standard premiums in order to attract people to apply for the scheme. The program will allow the holder access to a mobile and online platform that will keep track of their health as well as provide termly health reports.

There are 4 membership tiers available:

� Bronze: premium goes up by 2% per year

� Silver: premium goes up by 1% per year

�Gold: premium stays constant

� Platinum: premium goes down by 1% per year

The figures above are taken from a benchmark insurance policy program by Prudential called PruProtect Vitality. However, design of the membership tiers, such as the monetary benefits and the number of membership tiers, can be tailored by each insurance company.

Everyone will start with the bronze tier and they will be able to collect health points by:

�Conducting medical check-ups,

� Taking vaccines,

�Activity tracker-points and achieving activity goals,

�Declaring mental well-being and non-smoking agreement,

� Reporting blood pressure, cholesterol level, BMI, blood sugar level.

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Total points accumulated will be assessed per annum; however, holders can update their medical and activity status at their own time during the year. Based on the total points, the holder will be assigned to a tier. An example of the point accumulation scheme can be found in Appendix 1. The final design of the policy itself should be based on the data obtained from the studies.

For further development of the policy, several issues were found that should be taken into account, such as cheating, privacy, and possibility of renewals, which will be discussed in details in Appendix 2.

3.1. PROPOSED TARGET MARKET

The insurance should be mainly focused towards people with the following characteristics:

�Age 18-55 years: this will allow higher degrees of retention on the policies so that they will be more

inclined to continue to other policies when they are older due to trust and relationship. Furthermore,

a study on sports and physical activities found that the frequency of exercise/sport declines with age

(European Commission, 2014).

�Active or wanting to become active: the whole policy revolves around being healthy and active, thus

active people would be targeted.

� Educated or young professionals: a study states that there is a link between education and frequency

of exercise, in which the earlier people leave school, the less is frequency of exercise (European

Commission, 2014).

�Value conscious: other than active people, people who are conscious about their insurance premium

and the benefits that they actually need.

�Health conscious: being healthy means not only to be active - it also means to eat healthy. Targeting

people who care about healthy foods could be a relevant market.

�Open to technology: early adopters of technology and current owners of wearables will be a good

target because they might be more inclined to share their data.

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STUDYIn order to understand the impact of the new insurance policy towards customer attitude as well as to confirm the willingness to pay for the policy, a study is proposed to be conducted by Cognizant with the following objectives:

�Confirm consumer market for the new insurance model

� Identify incentives to participate in the new insurance model

�Monetary

�Health

The study will be conducted in two parts. The first is a preliminary survey to gauge the public’s perception of wearable technology in the insurance market. The second part is the pilot project which will mainly focus on monetary and social impact on a person’s activity level, which will eventually help to confirm the benefits of the wearable technology in insurance policy.

SURVEY AND RESULTS

The survey acts both as a substantiator of the hypotheses put forward and as a test of the attitude towards the proposed business model. Among the results found are that price, cover and insurance company reputation are the most important factors in choosing insurance; 63% were interested in our proposed insurance because it encouraged a healthy lifestyle through monetary incentives and it also gave the individual more control over the insurance. It also revealed some worries with the proposed insurance plan (among 37%), like privacy concerns, lack of necessity due to NHS system, scepticism of the potential commercial exploitation, dissatisfaction with having to be constantly conscious of your body and that health is more than just activity levels. Detailed results can be found in Appendix 3.

PILOT STUDY

The main purpose of the overall project has been the design of a pilot study. The pilot will test three hypotheses:

1. Wearable technology affects the activity level of a person,

2. There is a peer (social) effect on activity level,

3. Monetary incentives will affect a person’s activity level.

A full description and design of each hypothesis can be found in the table below. These hypotheses will be tested using correlation analysis, regression and causation analysis . This is done by creating several focus groups, each with their own characteristics.

1. Control group (neither activity tracker nor insurance)

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2. Basic group (only activity tracker)

3. Monetary group (will be given various monetary incentives by reaching certain daily goals)

4. Social group (the activity tracker will be connected to a social platform, and users will “compete”

against peers, to see if the influence from his/her peers motivates the user to increase activity levels)

5. Social and monetary incentives group.

For the monetary incentives, the trial will be run with several groups who receive different types and different levels of monetary benefits. Some may receive vouchers for a gym membership while others may be incentivised by a decreased monthly life insurance premium. Each of these groups will be compared to a reference group, who receives the same kind of external influence as the other groups.

For the social factor, one would have to compare the social group to both the control group and the basic group to determine whether or not social factors have any effects on activity levels across different age groups. By collecting data and analysing correlations between social alerts/performance of peers and a user’s activity level after the notifications, one can determine indicators of the strength of social incentives.

4.3. COST

The cost of such a project would be in the range of £152.500 - £175.000. This is based on a combination of activity tracker costs and project staffing costs. Details are found in appendix 4.

4.4. OTHER TESTS

In addition to testing the aforementioned hypotheses, two additional tests can be conducted, looking at behavioural factors for people in similar insurances, as well as the issues concerning insurance renewal incentives.

To test for renewals, it is important to identify three sets of characteristics from three groups. The first group is active people with activity trackers. The second group is people who get monetary benefits from being active while the third group consists of people currently using similar insurances, such as PruProtect Vitality or AIA Vitality. Characteristics noted could be age, gender, income, job, marital status, etc. Once identified, the characteristics of first and second group should be compared and contrasted to the third group to be able to roughly identify the characteristics of people who are more likely to renew the policy and hence clarify the target market.

In order to better understand the behaviour of holders and incentives for buying the policy, a focus group study of 5-10 people can be created with holders who have signed up for similar policies from other insurance companies. In the focus groups, the aim is to understand why a policy is purchased, how people react to the different ways of collecting points, as well as motivations to participate and the satisfaction with the policy.

NULL HYPOTHESIS EXPERIMENT DESIGN CHARACTERISTICS OF SAMPLE INITIAL DATA RECORDED (BEFORE STUDY)

VARIABLES/RESULTS DATA OBTAINED

WEARABLE TECHNOLOGY WILL HAVE NO EFFECT ON THE ACTIVITY LEVEL OF A PERSON

Time frame: 2 monthsNumber of groups: 2 Each person in both groups will be given activity tracker, however one group will have monetary incentive if they hit their goals. Monetary incentives can be designed in two ways:· Positive incentives: If they reach activity goal, then there will be reward· Negative incentives: If they don’t reach the goal for x times, then they will be penalized

Size: 30 people per group Samples should be matched pair for better comparison between the two groups. This means that the number of men and women, age distribution should also be the same. In the monetary incentive group, they should be divided into two matched pair subgroup so that the one subgroup can take the positive incentive scheme and the other subgroup can take the negative incentive scheme.

Level of physical activity: � Daily steps, � Duration and frequency of

exercise, � Type of physical exercise, � as well as: � Hours of sleep, � BMI.

Repeat measure of the initial data recorded, however data is taken through the readings in the wearable.

� Daily steps � Activity points and achievement � Hours of sleep � Type of physical exercise � As well as BMI.

Data should be recorded daily, thus in total there will be 60 records per sample with 60 samples.

THERE IS NO PEER EFFECT ON ACTIVITY LEVEL

Time frame: 2 monthsNumber of groups: 3 Three groups based on age:A. Young (18-35 years)B. Old (36-55 years)C. Mixed Each person in each group will be connected through social media with others within the same group. Daily social alerts will be sent to the users’ smartphones of either:

� Progress of peers � Reminders to exercise � Health tips � Reminders to wear the device

Data will be recorded on users’ response to different alerts and the impact of the alerts on activity levels. Further, the frequency of alerts would be varied each day to understand how many alerts the platform should send to holders.

Size: 100 people per group Each group will have equal numbers of male and female. Activity level of each person in each group should vary to enable to see whether there is any peer effects of an active person to the rest of the groups. Distribution of activity level per group should be similar to allow matched pair.

Initial activity level: � Types of exercise � Frequency of exercise � Duration of exercise

Daily points accumulated Activity level on the end of the experiment:

� Types of exercise � Frequency of exercise � Duration of exercise

Data should be recorded daily, thus in total there will be 60 records per sample with 300 samples

NULL HYPOTHESIS EXPERIMENT DESIGN CHARACTERISTICS OF SAMPLE INITIAL DATA RECORDED (BEFORE STUDY)

VARIABLES/RESULTS DATA OBTAINED

THERE IS NO PEER EFFECT ON ACTIVITY LEVEL

Test on peer effect combined with monetary effect

Time frame: 2 monthsNumber of groups: 2

Two randomly selected groups will be formed and each person will be given an activity tracker which will be connected to social medial.

One group (group B) will be given monetary incentives and the other one will be the reference group (group A). The performance of the two groups will be measured and compared to find out the impact of social and monetary incentives together.

The important thing to measure from this study are the percentage of people motivated by the social motivation and the percentage of people motivated by monetary incentives and also the relative strength of the two factors.

Size of group: 30 people per group

The two groups will be a matched pair, which means that the number of men and women, age distribution should also be the same.

Initial activity level: � Types of exercise � Frequency of exercise � Duration of exercise

Daily ‘points’ accumulated Activity level on the end of the experiment:

� Types of exercise � Frequency of exercise � Duration of exercise

Data should be recorded daily, thus in total there will be 60 records per sample with 60 samples. At the end of the study, a survey will be conducted to understand whether the social or monetary incentives that drives them to exercise.

MONETARY BENEFITS HAVE NO EFFECT ON A PERSON’S ACTIVITY

LEVEL

A survey will be conducted that will ask respondents about their reactions to different incentives schemes that are intended to make them active.

Respondents will be given activity goals such as running a certain distance, then they will be given incentives such as coupons and cashbacks at random and the response to the willingness to reach goals will be recorded.

Randomly selected sample of age 18 and above.

Age,Initial activity level:

� Types of exercise, � Frequency of exercise, � Duration of exercise,

Income level.

The willingness to reach activity goals in terms of scale.

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RECOMMENDATIONS5.1. FURTHER DEVELOPMENT OF THE POLICY

The insurance policy can be extended into a subscription to a health program. Features that can be added to the program are subscription to health magazines, meal planner and recipe ideas, membership to gym, online/QR promo codes for e.g. healthy restaurants, loyalty program to grocery stores, discounts for medical checkups/rehabilitation, vaccines and sports equipment, fitness events or cycle hire. For details about each of these features, see Appendix 5. These features can be offered free or at a low subscription costs. It should be able to be tailored by the insurance provider.

5.2. RECOMMENDATIONS

In order to provide quick, easy and secure access to insurance claims, an online and mobile platform can be built. Holders can quickly fill in a claim forms through their phones which will be directly processed to the insurance provider. Moreover, the platform could provide an automated transfer of health data to increase sense of privacy. Insurance companies should be able to connect with partners such as hospitals so that consumers’ health data could be transmitted quickly and accurately through the platform.

There are many developments in wearable technology that can also record various vital signs and symptoms like cardiac, body posture, blood glucose, and blood pressure. Examples for these upcoming devices are Nymi , BodyGuardian , BodyTel . These devices can help to even further build into real-time risks of the policyholder in order to directly decrease, forecast and prevent the number of insurance claims, in line with attracting new customers.

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REFERENCESCallaway, J. and Rozar, T. (2013). Disruptive Advances in Medical Technology: Risks and Opportunities for the Insurance Industry. Reinsurance Group of America Global Research and Development Research Bulletin Competition and Markets Authority (2014) Private Healthcare Market Investigation Final Report, 2 April 2014 [online] Queen’s Printer and Controller of HMSO 2014. Available from <https://assets.digital.cabinet-office.gov.uk/media/533af065e5274a5660000023/Private_healthcare_main_report.pdf> [15 July 2014]Euromonitor International (2013) The Future of Wearable Electronics: Forecasts, Segmentation and Applications. European Commission (2014) Sport and Physical Activity Report [online] available from <http://ec.europa.eu/public_opinion/archives/ebs/ebs_412_en.pdf> [25 July 2014] PruHealth (2014) Vitality Activity Tracking [online] available from<http://www.pruhealth.co.uk/vitality/partners/vitality-activity-tracking/> [22 July 2014]PwC (2013) Insurance 2020: Forcing the Pace-The Fast Way to Becoming a Digital Front Runner Report [online] available from<http://www.pwc.com/im/en/industries/life-insurance/assets/pwc_digital_life_insurer_2020-280414.pdf> [12 June 2014] Ries, J. (2014). Digital innovation in the Health Insurance Market. 17 February 2014. Harvard Business School Blog. [online] available from <http://blog.hbs.edu/dighbs/digital-innovation-in-the-health-insurance-market/> [27 July 2014]

Staywell Health Management (2014) Energy Comoany generates better health for Employees [online] available from<http://staywell.com/wp-content/uploads/2014/01/StayWell-BP-CaseStudy_Jan2014.pdf> [20 July 2014]

The Vitality Group (2014) Fitness Devices Impacting Employee Health According to Vitality Stud [online] available from<http://www.thevitalitygroup.com/wp-content/uploads/2014/04/TVG-wearables-news-release-FINAL.pdf> [22 July 2014]

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APPENDIXAPPENDIX 1

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ISSUES SOLUTIONS

PEOPLE MAY NOT UPDATE THEIR DATA

Due to the independence and control being passed on to insurance holder, the consumers will have to conduct and update medical check-ups at their own time. They may either forget and not motivated to update their personal data since they are already paying for a cheaper insurance anyway.

The insurance policy is designed that everyone starts at the bronze tier so the premium will go up first before it can be reduced, hence creating an incentive for holders to update their data and accumulate points through medical check-ups. Moreover, the platform made should be automated and user friendly as well as available for easy access to holders for added transparency.

CHEATING WITH USAGE OR FAKE MEDICAL DATA

Since a lot of the wearable technology are made out of accelerator chip, it can be quite easy to cheat by giving it to others to use, or just moving it to record steps taken. Moreover, if holders can update medical data on their own they could present fake results.

To tackle the fake medical data issue, there should be a platform that connects the insurance company and the medical check-ups providers so that data can be automatically transmitted, thus reducing the possibility to tamper with the results.

The policy is not based solely on the results as recorded by the wearable technology, but also other medical data. Hence, doesn’t mean that if the person cheated, then the medical results will show improvements.

Further development of cybersecurity and reduced costs of technology gives chance to avoid inaccurate or fake results. Technology using cardiac rhythm helps authenticate your identity helps avoid use of particular device by others.

ABILITY TO UPDATE DATA NON-AUTOMATICALLY

There may be some occasions where holders may go to do an exercise but then forgot to wear the activity tracker or that the holder may take medical tests elsewhere not with the connected medical check-up provider.

Reminders should be sent to users on wearing the wearable. The reminders could not be directly saying that they’ve not been wearing it but it could be a health tips such as “Running up and down the stairs for 10 minutes can burn x amount of calories”. This is a feature that none of the wearable device currently offer, thus should be added to the platform.

The platform can provide a way to be able to update data non-automatically, however at a cost. For example, holders can update activity and medical data by himself only 3 times during a year but it only allows e.g. half of the points to be accumulated.

PRIVACY REASONS

The wearable technology has to be worn all times and will constantly update the holder’s profile. While this will be compensated through the reduction in premium, some people may feel that they are being monitored all the time. Furthermore, the extent to which each person are willing to share the medical data, i.e. some person may think sharing blood sugar level is fine but to others is more private.

Furthermore, customers may be more willing to share with the wearable technology companies than insurance companies as they will feel that the insurance company will manipulate and benefit from the medical data.

The security of the platform is very essential in the implementation of this model. The data should not be available to anyone in the insurance company without any permission and that all the profile and premium should be automated to ensure that privacy is kept just to holder.

Moreover, the points system allows holders to have control over which medical data they want to share at the price of having a lower premium. In this manner, holders actually can make their own decision whether to share or not.

APPENDIX 2

15BUYING THE INSURANCE ONLINE MAY REDUCE PERSONALIZED EXPERIENCE TO CUSTOMERS

Traditionally insurance is sold through agency and the agents will meet up with you and discuss about the policy in person. However, the new policy will be sold mainly through online in which all the information will be available online.

While online selling will be the main channel for sales but the policy can also be an additional to an existing policy that are sold through agents. The website should provide 24/7 support through either live chat or hotline so that customers will still be able to interact with the insurance company.

RENEWALS OF INSURANCE POLICY

One issue that interests insurance company is that how to keep the customers in the policy, i.e. how to create an incentives scheme to keep customers.

There are also concerns on how much medical data should be made available to holders, so that they wouldn’t just take the medical data and apply for cheaper insurance in another company.

Since the policy is relatively new it is going to be hard to identify persistence, hence we proposed a test in Section 4.4.

Further, renewals of the policy depends on the effect of incentives to individual holders. Therefore, renewals will be highly dependent on the monetary incentives given and marketing promotions on top of the program (events, discounts/cashbacks) as well as the quality of the health program offered by the policy.

To keep consumers from diverting to different policies with the given medical data, the medical data should be presented in a unique and graphical way instead of being presented as a traditional medical record.

COMPETE WITH GOVERNMENT HEALTH CARE PROVISION

In countries where healthcare is freely provided by the government, for example UK, private health care will need to differentiate itself so that it can attract customers

Defining a proper target market will be important to the insurance policy. The target market would be defined through the results to the studies.

Other markets that can be targeted is by providing group insurance to companies to insure its employees.

SELF SELECTION

The insurance policy can encourage self selection, such that only the active individuals will be more inclined to buy the policy. Self selection may not be desired by the insurance company since it will not create diversification to spread risks.

The policy will offer lower premiums than normal insurance to attract not just the active individuals but also the value conscious customers.

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SALARIESA certain number of people need to run this project. Using an average daily project wage of one project manager (£650), one junior project manager (£350) and five support staff (£250) and a span of two and a half months the results are as follows (assuming weekends are work-free days):

DEVICE UNIT PRICE TOTAL PRICE

Misfit Shine $100 / £80 $50.000 / £40.000

Basis Carbon Steel $150 / £88(not available in UK) $75.000 / £44.000

Fitbit One/Flex $140 / £80 $70.000 / £40.000

Jawbone UP24 $150 / £125 $75.000 / £62.500

Withings Pulse $120 / £80 $60.000 / £40.000

WORKER DAILY WAGE DAYS COST

Project manager £650 50 £32.500

Junior project manager £350 50 £17.500

Support staff x 5 £250 50 £62.500

TOTAL COST £112.500

APPENDIX 3

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FEATURES DETAILS

Subscription to health magazine Holders can get access to partner health magazines that can be accessed through the online platform (mobile apps and

Meal planner and recipe ideas

One of the findings is that healthy lifestyle isn’t only just about being active, but it’s also about eating healthy. A meal planner can be added to the platform where holders can have access to recipes and build a shopping list.

Membership to partner gym

To promote active lifestyle, the policy can include gym membership with partner gym. Membership fee can be offered at discount rate or for free depending on the insurance company policy. A gym membership fee discount can potentially be added depending on the points earned by the user. Further, members could also earn points when he/she join a certain class in the gym.

Online/QR promo code

The policy could include offers to healthy restaurants or juice bars or other relevant companies that promotes healthy living through discounts and cashbacks that can be accessed from the apps in the form of QR code.

Loyalty program to grocery stores

The loyalty program should not only include coupons and cashbacks based on your past purchases but also assign points if holders buy a certain array of healthy products which can then be accumulated to the policy points

Discounts to medical check-ups and vaccines to partner hospitals

As the policy assign points to medical check-ups and vaccines, then it could also be beneficial to provide discounts in partner hospital/healthcare provider.

EventsThe program could also include organized fitness events such as marathon, running club, etc. in which holders can earn points through joining the events.

Sports equipment discounts Providing discounts for sports clothing and equipment can involve program participants in sport activities and attract

Cycle hire

The program could provide bike rental, which is becoming ubiquitous. Providing higher discounts for frequent customers should be rewarded to encourage continuous active behaviour.

‘Bad habits’ treatment discounts Discounts for treatments of unhealthy habits.

APPENDIX 4

TECHFITTIESImperial College Business School27.07.2014

Maximillian Doelle md4113@imperial.ac.uk

Michelle Gunawanmsg213@imperial.ac.uk

Opeoluwa Adeyemo ooa112@imperial.ac.uk

Yizhi Wuyw713@imperial.ac.uk

Yang Gao yg2713@imperial.ac.uk

Orkhan Ahmadov oa1313@imperial.ac.uk

Martin Knutlimk713@imperial.ac.uk