Workplace wearables and the opportunity for insurance agents

Wearable technology is becoming ubiquitous worldwide. Fitbit shipped its first units 10 years ago and kick-started an idea that has been coined the “quantified self.”

The benefits have been remarkable:

• People are paying attention to their physical activity;
• Health information is more easily shared with doctors; and
• Habit-forming is supported by precise information.

Wearable technology also has had palpable impacts on workplace safety, despite the fact that adoption has been slow as the relevant stakeholders search for effective deployment approaches.

It’s time for carriers and brokers to be knowledgeable resources for clients in cutting workers’ comp costs through the functionality of wearables. This will be realized by centering on employee health and safety and by addressing data privacy and trust issues.

A number of companies are working on products that reduce injuries in such high-risk industries as construction, oil and gas, transportation, and warehousing. My own company, Kinetic, makes a discreet, pager-sized device that clips onto a worker’s belt to track unsafe postures and falls. The international records management company Iron Mountain® tested our wearable with its drivers and warehouse staff and saw nearly a 60% daily reduction in high-risk postures as well as virtually no acute strain and sprain injuries at the sites where the device was deployed. This is just one example of empowering workers with self-awareness, leading to safer behaviors.

Other compelling applications for wearable technology combine safety and cost-cutting, such as:

• Sensors in shoes that detect gait and lifting issues;
• Smart glasses that capture and transmit video and sound; and
• Wearables that communicate with proximity sensors built into dangerous machines.

However, there are concerns surrounding who controls and interprets the data output. The data generated by wearables is clearly useful to company leadership, as it identifies pain points and reveals unseen patterns in safety practices. It’s also important for insurance companies developing new products for corporate clients and for insurance brokers implementing risk control strategies to reduce client losses.

Before companies invest in new technology, they need to work closely with their legal teams, labor unions and employees to draw clear lines around what information is shared, how it’s shared, and how employees are affected.

Management support & safety

Company leadership must ensure employees and supervisors are trained in how to use and maximize the technology. Without this commitment, new technology deployments will fail to deliver the desired financial impact, and they can have a damaging effect on worker morale and company culture.

The opportunity at hand

For insurers and brokers who understand that their greatest value is helping employers reduce risk and allocate resources, wearable technology should be seen as an opportunity to become a valuable partner and coach.

Identifying clients with the right safety culture and employee focus who are most likely to succeed in deploying wearable technology will lead to the development of best practices that can then be relayed to clients who may not be right for early adoption. Working closely with wearable vendors can help carriers and brokers understand the roles of these technologies and how they best fit their client needs.

These partnerships are a significant competitive advantage as clients try to navigate the disruption that wearable devices and technology brings to their industry and operations.

Haytham Elhawary (haytham@wearkinetic.com) is CEO and founder of Kinetic, a New York City-based company that builds a wearable devices for workers. These opinions are his own.

See also:  Wearables are making the workplace safer