Barry's 2015 CRC presentation with new CRC ppt template

Wearable Devices:

BRAVE IN A WORLD OF RISK

Barry Dixon, Vice President Underwriting

Canadian Reinsurance Conference - April 14, 2015

Overview

• History and Evolution of “Wearables”

• Medical Innovation/Better Rx Compliance

• Possibilities and Opportunities

• Confidentiality & Privacy Issues

• New Product Ideas?

• Conclusions

3

WEARABLE DEVICE HISTORY

WEARABLE DEVICE HISTORY

2001 2007

5 MAJOR DIGITAL ADVANCES

1973 Cell Phone

1977 Personal Computer

1994 Internet

2001 Digital Devices

2003 Human Genome Sequencing

6

Smartphone

WEARABLES: WHAT DEVICES COME TO MIND?

7

Inspector Gadget

WEARABLES: WHAT DEVICES COME TO MIND?

8

THE SONIC SCREWDRIVER

IN THE PAST – WEARABLE DEVICE DILEMMA

9

1) Fuji DL-80 Compact Camera 2) Heart-rate Monitor 3) Creative Zen MP3 Player 4) GameBoy Pocket 5) Pedometer 6) Video Camcorder

7) Flip phone 8) Portable radio 9) Polaroid camera 10) Mini Disc Player

11) Sat/Nav System

Source: http://www.phones4u.co.uk/community/wearable-tech-unwearable-to-wearable/#sthash.QbFkSmEi.dpuf

http://www.phones4u.co.uk/community/wearable-tech-unwearable-to-wearable/sthash.QbFkSmEi.dpuf










IS THIS THE WELL-CONNECTION PERSON OF THE FUTURE?

10

Glasses

Cardiac Monitoring

Health Monitor

Smart Watch

Wearable Fitness Sensors

Patient Monitor Outside Hospital

WHAT IS WEARABLE TECHNOLOGY?

11

“Wearable Devices” or “body-borne computers” that can be worn by user – Intended to interact with the wearer without punching keys or other manipulation - Always on, always working

- Perform calculations and process Information

SUM OF TWO (2) PARTS

12

The Wearable technology consists of Two parts

----------------------------------------------------------------------------

{ 1. Sensors, glasses, watches { 2. Information aggregator Yes - even foot wear & analyzer

U.S. HEALTH CARE – WEARABLE OPPORTUNITY?

13

Image Credit - West Health Institute Data from California Healthcare Foundation, Congressional Budget Office, U.S. Centers for Disease Control AAMC and NEHI

U.S. HEALTH CARE AS A SHARE OF GROSS DOMESTIC PRODUCT (GDP)

14

Data from California Healthcare Foundation, Congressional Budget Office, U.S. Centers for Disease Control AAMC and NEHI Source: http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and

reports/NationalHealthExpendData/NationalHealthAccountsHistorical.html

2001

14.5%

2010

17.9%

U.S. health care spending grew 3.7% in 2012, reaching $2.8 trillion or $8,915 per person. As a share of the nation's Gross Domestic Product, health spending accounted for 17.2 percent.

http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and














U.S. HEALTH CARE AS A SHARE OF GROSS DOMESTIC PRODUCT GDP)

15

Data from California Healthcare Foundation, Congressional Budget Office, U.S. Centers for Disease Control AAMC and NEHI

2001

14.5%

2010

17.9%

2021

19.6%

2035

26%

2012 Per Capita Spending

$2.7 TRILLION or $8,952/person

U.S. HEALTH CARE – AGING POPULATION PEOPLE 65+

16


13%

40.3 MM

2010

U.S. HEALTH CARE – AGING POPULATION PEOPLE 65+

17


13%

40.3 MM

2010

19.6%

71 MM

2030

HOSPITAL READMISSIONS – THE COST PROBLEM

1 in 5 readmitted within 30

days

Health cost burden

$25 Billion/year

18


19

ALS (Lou Gehrig's Disease)

Alzheimer's Disease and other Dementias

Arthritis

Asthma

Cancer

Chronic Obstructive Pulmonary Disease (COPD)

Cystic Fibrosis

Diabetes

Eating Disorders

Heart Disease

Obesity

Oral Health

Osteoporosis

Tobacco Use and Related Conditions

CHRONIC DISEASES AND CONDITIONS


$3 out of $4 in

health care spending

$1.875 Trillion spent

annually

20

WORSENING PHYSICIAN SHORTAGE (U.S.)

21

Source: AAMC Center for Workforce Studies, June Analysis, 2011

Physician Demand

Physician Supply

680,000

730,000

780,000

830,000

880,000

930,000

NECADE: Will be SHORT - 45,000 Primary care physicians - AND - 46,000 Surgeons & Medical Specialists

2010

2015

2020

2025

130,600

91,500

62,900

13,700

723,400

798,500

851,300

916,000

709,700

735,600

759,800

785,400

DEMOGRAPHICS AND SOCIAL TRENDS

Higher Life Expectancy

Higher Ratio of Seniors

Increased Prevalence of Chronic Disease

Cost - $2 TRILLION

22

DEMOGRAPHICS AND SOCLIAL TRENDS



Increased Prevalence of Chronic Disease

Cost - $2 Trillion

23

DEMOGRAPHICS AND SOCIAL TRENDS



• Increased Prevalence of Chronic Disease

• Cost - $2 Trillion

More Patients in Need of Long Term

Care

Decrease

Length Hospital Stays

24

ADD IN SILVER TSUNAMI….

Aging In Place – Silver Tsunami

78 Million Boomers

Turned 65 in 2011

9 of 10 Seniors want to stay in the home they retired in

25

ADD IN SILVER TSUNAMI….

Care at Home – Remote Monitoring Programs

1) Well Aware

2) Genesis Tele Monitor

3) Phillips Lifeline

(and others)

Aging In Place – Silver Tsunami

78 Million Boomers

Turned 65 in 2011

9 of 10 Seniors want to stay in the home they retired in

26

MONITORING DEVICES AVAILABLE NOW

• WellAware measures key wellness indicators, such as sleep quality, activity levels, bathroom visits, & other physiological information through an array of wireless sensors and analytical software.

• When subtle changes become trends, the caregiver is alerted so they may address potential, emergent health conditions more quickly.

Well Aware

27


• WellAware measures key wellness indicators, such as sleep quality, activity levels, bathroom visits, & other physiological information via an array of wireless sensors and analytical software.


Well Aware

• Asks subjective disease-related questions to provide a more complete picture of the individual’s health

• Automatically prompts in-home users when time to take vital signs through voice or text communication

• Can accommodate multiple medical peripherals such as a glucose meter

Genesis Tele Monitor

28


• WellAware measures key wellness indicators, such as sleep quality, activity levels, bathroom visits, & other physiological information through an array of wireless sensors and analytical software.


Well Aware

• Measures heart rate, blood pressure, weight

• Asks subjective disease-related questions to provide a more complete picture of the individual’s health

• Automatically prompts in-home users when time to take vital signs through voice or text communication

• Can accommodate multiple medical peripherals such as a glucose meter

Genesis Tele Monitor

• Every year, approximately one in every three adults age 65 and older will fall

• Nearly 50% are unable to get up after the fall

• Lifeline can automatically place a call for help if it detects a fall & individual unable to push the button for help

Phillips Lifeline

29

HEALTH CARE COSTS MUST CHANGE/IMPROVE

30

Health Economics dictate a shift in spending

1

HEALTH CARE COSTS MUST CHANGE/IMPROVE

31

Health Economics dictate a shift in spending

TO: Health Care that is customized to:

MONITOR, DIAGNOSE, EDUCATE, &

INTERVENE

Regardless of location or time

1

2

PERFECT STORM FOR WEARABLES TO HELP HEALTH CARE REFORM

• Increased pressure on insurers and government services (Medicare) to control costs • 10 years ago began building a $4 Billion electronic health - record system (research based clinical advice, & added analytics tools and data from more sources – including information from a patient’s medical device)

• Payoff – mining “Big Data” may provide insights into the best treatment options for the lowest cost & find associations not predicted, or anticipated (Good or Bad)

Source: MIT Technology Review Vol. 117 No.5

32

BENEFITS OF WEARABLE TECHNOLOGY

Educate and empower patients to take control of their health Help physicians & patients monitor & diagnose disease Assist in medical procedures Allow patients to control & manage their pain Make personal fitness more fun

33

HEALTH CARE

• "What's going to accelerate health as much as anything is

consumer devices having medical features on them so that we're

continuously collecting this data over a large population of patients"

Source: Dr. Leslie Saxon, cardiologist at the University of Southern California Keck School of Medicine & Executive Director and founder of the USC Center for Body Computing.

34

Promise of making consumers healthier

35

Attaining a critical mass of data to detect patterns, supports expectations for making new discoveries


Provide a basis for lowering Health care costs

36



Provide a basis for lowering Health care costs

Opportunity for IT & deployment of technology – Particularly

data analytics applied to Health care

37


CAN TECHNOLOGY & BIG DATA IMPROVE MEDICAL CARE?

Medicine in the Data Age with Mobile Technology

38

Possible to capture information about individuals & their environment

Analytic Software

Sensors Genome

Sequencing

WHO WOULD BENEFIT IMMEDIATELY?

People who might benefit most from body-tracking wearable devices may be those least expected:

Elderly

The Infirm Chronic Illness Sufferers

Source: http://pando.com/2013/11/27/study-finds-that-the-people-most-likely-to-benefit-from-fitness-wearables-arent-using-them/

Pew Center found that 84% of people with chronic conditions use a pen and paper or rely on their memory to track their physical condition

ONLY 4% used applications or other tools on their smart phones

39

http://pando.com/2013/11/27/study-finds-that-the-people-most-likely-to-benefit-from-fitness-wearables-arent-using-them/






























WHO WOULD BENEFIT IMMEDIATELY?

• People with chronic diseases don’t suddenly decide that they’re over it & the novelty has worn off • Tracking and self-measuring helps keep them out of the hospital

Apple’s ResearchKit software allows researchers to design apps that use built-in sensors on the iPhone + data from other wearable devices to gather health data on volunteers and help individuals follow through with important health behaviours

Researchers will be able to enroll participants remotely to create sample groups “that are order of magnitude” greater that in the past and at a fraction of the cost

40

Source: Dr. Eric Schadt, genomics professor at the Icahn School of Medicine at New York’s Mount Sinai Hospital

EXIT – LEGACY MEDICAL DEVICES

EEG equipment for recording and monitoring brain waves for epileptic activities

Same for ECG monitor, sphygmomanometer, oximeter, & many other devices used to perform medical procedures

If they capture any data - the data remains with the device

42

BLUETOOTH ENABLED DEVICES

Put a sensor with Bluetooth technology into/or onto anything - you have a smart object! Monitoring outside the medical facility is becoming a reality, and increasingly preferred. Will be able to coordinate the capture of comprehensive physiological, electrical, chemical data about the body, in sickness and in health, intermittently ,or continuously

New era medical devices are magnitudes better than their legacy counterparts because : • Software - add/extend functions & features • No need to turn the device on or off • Not necessary to stop what you are doing to use the device

Data more meaningful to consumers & users

43

Medical devices, as endpoints, can provide openings into networks, allowing criminals to gain access and perform more far-reaching attacks and exploits on manufacturers Risk of attacks on the general public via these devices is low, and the cost of device security must be factored into the overall value of the risks being managed

GLOBAL WEARABLE DEVICES MARKET – 3 SEGMENTS

Pain Management • Glucose/Insulin Monitoring

• Respiratory Therapy Devices

Vital Signs Monitor • Fetal and Obstetric Devices

• Neuromonitoring Devices

Sports and Fitness • Remote Patient Monitoring

• Home Healthcare

Source: http://www.wearabledevices.com/2013/12/10/wearable-medical-devices-market-is-expected-to-reach-usd-5-8-billion

DR. ERIC TOPOL’S 10 TARGETS FOR WIRELESS MEDICINE

45

Disease No. Affected Wireless Solutions

Alzheimer’s 5 Million Track Vital Signs, Location, Activity & Balance

Asthma 23 Million Track Respiratory Rate & Peak Flows – so Patients Can Use Inhaler Before an Attack

Breast Cancer 3 Million Ultrasound Self-Exam & Send Scan to their Doctor – Reduce need for mammography

COPD 10 Million Monitor FEV1, Air Quality, & Oximetry

Depression 21 Million Track Med Compliance, Activity, & Communication

Source: http://mobihealthnews.com/1220/topols-top-ten-targets-for-wireless-medicine/

Dr. Topol is Director of the Scripps Translational Science Institute, established to apply genetic discoveries to personalized medicine

http://mobihealthnews.com/1220/topols-top-ten-targets-for-wireless-medicine/















DR. TOPOL’S 10 TARGETS FOR WIRELESS MEDICINE

46

Disease No. Affected Wireless Solutions

Alzheimer’s 5 Million Track Vital Signs, Location, Activity &,Balance

Asthma 23 Million Track respiratory rate & peak flows – so patients can use inhaler before an attack

Breast Cancer 3 Million Ultrasound Self-exam & send scan to their Doctor – reduce need for mammography

COPD 10 Million Monitor FEV1, Air quality, & Oximetry

Depression 21 Million Track Med Compliance, Activity, & Communication

Diabetes 24 Million Monitor Blood Glucose, Hemoglobin A1C

Heart Failure 5 Million Monitor Cardiac Pressures, Weight, & BP

Hypertension 74 Million Continuously Monitor BP, Medication Compliance

Obesity 80 Million Track Weight, Glucose, Caloric Intake, & Activity

Sleep Disorders 40 Million Monitor Sleep Phases, Quality of Rest, Apnea, & Vital Signs

Source: http://mobihealthnews.com/1220/topols-top-ten-targets-for-wireless-medicine/

Dr. Topol is Director of the Scripps Translational Science Institute, established to apply genetic discoveries to personalized medicine
















ACCURACY?

47

In case you were wondering……..

Minuscule pendulum in a little box, which moves around when the sensor is moved, and approximates values that change

on each of the x, y and z axes while compensating for gravity

Each person has a different range of motion Until software can detect & adapt to a person’s specific range of motions there will be a significant error rate

IMAGINE THE UNINMAGINABLE!

• Ingestible cameras capable of real time transmission of the images to image processing module

1)1) 2) 2) 3)

Future: 24 hour vital sign & ECG monitoring coupled with physical activity profile Simultaneous monitoring of airway resistance, & medication delivery

48

PRESENT AND NEAR FUTURE

49

Zio XT Patch – FDA Approved Prescribed by Physician who sets monitoring period Continuously records patient’s heartbeats. After up to 14 days device sent to manufacturer for Device is non-invasive, water-resistant & no wires

Google introduced it’s smart lens project device (thinner than a strand of hair) to monitor Glucose levels for people with DIABETES through their tears, once per second Currently in talks with FDA (needed to bring product to market)

Soft contact Lens Encapsulates electronics

Sensor Detects glucose in tears

Chip & antenna Received power, sends info

SAPERE AUDE – DARE TO KNOW

50

Source: https://www.scanadu.com

Scanadu Scout designed to be medical grade Tricorder

linked via Bluetooth to a smartphone & emulate an ER in your hand

(Pending FDA approval!)

Heart Rate & ECG

Blood Pressure

Temperature

Respiratory Rate

Oximetry

1) Visible & near-IR LED & sensor (for the oximetry test) 2) ECG sensor, a far-IR sensor (for temperature) 3) Microphone (to gauge heart and breathing sounds)

Star Trek Tricorder

Scanadu Scout

https://www.scanadu.com/



MEDICAL DEVICE DEFINITION

51

Definition

• Instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including a component part, or accessory

MEDICAL DEVICE DEFINITION

52

Definition

• Instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article, including a component part, or accessory

Intended to affect the structure of any function of the body of

man, or other animals

Source: http://www.fda.gov/medicaldevices/deviceregulationandguidance/overview/classifyyourdevice/ucm051512.htm

COMMUNICATION – NEW GENERATION MEDICAL DEVICES

Devices will communicate information

(to: Physician, Case manager, Benefit manager, etc.)

A

53

Multi-functional, Adaptable, Portable, Self-documenting, Self-managing & Intelligent

Multi-function, Adaptable, Portable, Self-documenting

Anyone

Anywhere

OBVIOUS DILEMMA

54

Information

Privacy

OBVIOUS DILEMMA

55

Information

Privacy

DEFINED BY UNITED STATES JUSTICES:

S. WARREN & L. BRANDEIS (1890)

• “Right To Be Left Alone” and to keep information about themselves from being disclosed to others

Information shared in a clinical relationship is considered confidential & MUST BE protected • E.g. Identification data, diagnoses, treatment, progress notes & lab results

56

“I never said I want to be alone.

I said I want to be left alone.

There is a world

of

difference”

Greta Garbo

CONSEQUENCES

Advances in technology, including computerized medical databases have

opened the door to potential breaches of private/confidential information

57

2014 MOST COMMON & WORST PASSWORDS

58

Source: http://splashdata.com/index.htm

Rank # Password Rank # Password

1 123456 11 1234567

2 password 12 monkey

3 12345 13 letmein

4 12345678 14 abc123

5 qwerty 15 111111

6 123456789 16 mustang

7 1234 17 access

8 baseball 18 shadow

9 dragon 19 master

10 football 20 michael

These "Worst Passwords" that will expose anyone to being hacked or having their identities stolen

makes password management applications

AREAS OF SECURITY CONCERN

Wearable Device Itself

59



Transfer of Data To Companion Device &

Transfer to Cloud

60



Transfer of Data To Companion Device &

Transfer to Cloud

Data Storage in the Cloud

61



Transfer of Data To Companion Device Transfer to Cloud

Storage Of Data In The Cloud

Data Storage Is

Hacker’s Target!

62

CONCERN OVER SECURITY OF HEALTH DATA

Security concerns arise from the increased use of

Electronic Health Records (EHRs)

1) Increased Use of Mobile Devices,

2) Medical Identify Theft

3) Anticipated Exchange of Data

Between Clinicians, Federal Agencies

& Patients

Near future there will be one national network that contains every citizen’s health record – SUCCESSFULLY addressing privacy issues would mean - individual health record could be easily accessed by an insurance company

- Speeding Up Decision Making - 63

3

2

1

LEVELS OF THEAT TO INFORMATION SECURITY

Insiders abusing record access privileges

64

Source: According to the Committee on Maintaining Privacy and Security in Health Care Applications of the National Information Infrastructure,

levels of threats to privacy fall into the above categories

Insiders abusing record

access privileges

Vengeful Employee &

outsiders

65



LEVELS OF THREAT TO INFORMATION SECURITY

Insiders who access information for spite or profit


Insiders abusing record access privileges

Insiders who access information for spite or

profit

Vengeful Employee &

outsiders

66




Insiders abusing record

access privileges

Insiders who access information for spite or

profit

Unauthorized physical intruder

Vengeful Employee or outsider(s)

Intent to damage systems or disrupt

operations

67



WEARABLE DEVICES - VULNERABILITIES

68

Flood device with information so normal communications do

not reach it


69

Unauthorized device reprogramming & data

extraction

Flood device with information so normal communications do not

reach it


70

Unauthorized device reprogramming & data extraction

Flood device with information so normal communications do not

reach it

Tactics to prematurely drain battery by repeatedly awakening it from a

sleep state

WHAT IS CONSIDERED CONFIDENTIAL?

71

Age √

Religion √

Health √

Conditions &

Problems


72

Age √

Religion √

Health √

Conditions &

Problems

Gender √

Marital Status √

Insurance

information √


73

Age √

Religion √

Health √

Conditions &

Problems

Gender √

Marital Status √

Insurance

information √

Race √

Health information

√

(includes lab tests, x-rays, blood work, MRI & CT scans plus any diagnostic patient

procedure/physician contact)

DATA ENCRYPTION

Apply Data Encryption

Disguise all data inside medical files through cryptography

8% of the data breaches listed on Health & Human Services’

“Wall of Shame” are due to hacking

92% of breaches come in the form of simple yet costly human errors:

Losing a laptop

Taking a break & not locking down a keyboard, etc.

74

Involved persons who received treatment from a physician's office tied to a network-owned hospital in the past

5 years "No matter how good you make the technology, "we'll never get the risk down to zero."

75

COMMUNITY HEALTH SYSTEMS (206 hospitals /29 States)

8/ 2014 – Hackers gained access to names, Social Security #’s, Physical addresses, birthdays & telephone #’s

2014 HEALTH RECORD BREACHES REPORTED (Breaches affecting 500 or more people)

Name of Covered Entity

State

Individuals Affected

Breach Date

Type of Breach Location of Breached Information

Baylor Medical Center

Texas 2,308 Jan. 23rd Hacking/IT Incident E-mail

Health Texas Provider Network

Texas 2,742 Jan. 23rd Hacking/IT Incident E-mail

Salina Family Healthcare Center

Kansas 9,640 April 8th Unauthorized Access/Disclosure

E-mail

Group Health Care Plan

Michigan 2,289 May 13th Unauthorized Access/Disclosure

E-mail

Nirad Medical Associates

New York 97,000 April 24th Unauthorized Access/Disclosure, Hacking/IT Incident

Desktop Computer, other portable Electronic

Device

Rady Children’s Hospital

California 14,121 June 6th Unauthorized Access/Disclosure

E-mail

76

Source: http://www.hhs.gov/ocr/privacy/hipaa/administrative/breachnotificationrule/breachtool.html

Since 2009, federal law has required health care providers to report to the

Department of Health and Human Services and the news media all data

breaches affecting 500 patients or more

LARGEST DATE BREACHES SINCE 2009 (Breaches affecting 500 or more people)

Health Care Provider State # Affected Type of Breach Date

Tricare Virginia 4,901,432 Loss of Backup tapes Sept. 13, 2011

Health Net, Inc. California 1,900,000 Unknown Jan. 21, 2011

North Bronx Healthcare Network

New York 1,700,000 Electronic medical records theft

Dec. 23, 2010

AvMed, Inc. Florida 1,250,000 Laptop theft Dec. 10, 2009

Nemours Foundation Florida 1,055,489 Loss of Backup tapes Aug. 10, 2011

Blue Cross Tennessee 1,023,209 Hard Drive theft Oct. 2, 2011

Sutter Medical Foundation California 943,434 Desktop computer theft Oct. 5, 2011

South Shore Hospital Massachusetts 800,000 Loss of portable electronic device

Feb. 26, 2011

Utah Dept. of Health Utah 780.000 Hacking March 10, 2012

Eisenhower Medical Center California 514,330 Computer theft Marcy 11, 2011

77

Source: http://www.hhs.gov/ocr/privacy/hipaa/administrative/breachnotificationrule/breachtool.html

AT THE PEARLY GATES….

78

Sorry - I had no idea you died -

We don’t have access to your medical records”

GROWING SUPPORT FOR WEARABLES

January, 2014 (CES)

Consumer Electronics Show

Intel’s CEO Brian Krzanich announced the company’s goal

of penetrating the wearable computing market led by an SD-

sized computer with built-in wireless-ness, the “Edison”

“Full Pentium-class PC in the form of an Secure Digital card”

79

Source: http://www.business-standard.com/article/companies/intel-exploring-women-focused-wearables-114091101198_1.html

HOW INTEL SEES THE FUTURE OF WEARABLES

“Edison” can be redesigned to work with most devices - not

limited to computers, phones, or tablets & can house multiple applications”

Well positioned to support innovation & product development

80

Source: www.intel.com/edison

ANNOUNCEMENT - August 13, 2014

Intel announced a partnership with

Intel's devices will help research on & treatment of neurodegenerative brain

disease

Intel hopes to mine data to improve research, & better understand the

behaviors/progression of the disease

81

INTEL HELP BATTLE PARKINSON’S

82

Device like the popular FitBit (a wristband activity monitor) 300 data points will be recorded per second - equivalent to one GB of data per patient/per day - Information uploaded to Intel's system by a smartphone

Objective : Create algorithms to automatically measure body movement symptoms & sleep patterns

APPLE ANNOUNCEMENT (9/2014)

83

“There are several things called smartwatches that are shipping…. But certainly there have been none that have changed the way people live their lives. That’s our objective” -- Tim Cook CEO 2/ 2015

Built in infrared & LED sensors accurately record pulse rate

TIKKER: HAPPINESS WATCH OR DEATH WATCH?

84

TIKKER: HAPPINESS WATCH OR DEATH WATCH?

85

Source: http://mytikker.com/products/tikker

Cost -$79.00

HOW DOES TIKKER PREDICT DEATH?

To set up Tikker the wearer fills out a questionnaire by entering information about their medical history, including allergies or Illnesses They are asked whether they drink or smoke and if there are any instances of cancer,

diabetes and other diseases in their family Wearers are additionally asked about how much exercise they do, as well as how much they weigh before receiving a score Their age is deducted from the results to predict a death date and the Tikker begins the countdown

Tikker: Kickstarter

http://mytikker.com/products/tikker



INSURANCE OPPORTUNITIES

“Mobile devices and social media have "fundamentally changed

consumer expectations," and by harnessing mobile technology,

Insurers can reach & service "markets that increasingly demand

Convenience & a flexible interface.“

“Traditional insurance products and distribution channels aren't

well suited for Generations X and Y”

Source: Ernst & Young's 2014 Global Insurance Outlook

86

INSURANCE OPPORTUNITIES

87

1. Developing direct-to-consumer

relationship (apply data analytics &

more efficient underwriting)

– Can evolve into an online sales system

2. Developing a multi-channel approach

(self-service options along with an

enhanced customer experience)

Consider:

LIFE INSURANCE

Can we develop Well-Being Benefit Products or at a minimum?

88

Identify Best

Risks

Prioritize Cases

Increase Placement

Ratio

Underwriting Speed & Consistency

DIRECTLY MARKETED TO PROPOSED INSUREDS

• Direct to consumer marketing to bring down distribution costs • Integrate data with electronic applications, data analytics, use of underwriting systems

• Younger risks, professionals & the wealthy likely to be more & willing to purchase insurance via direct online/call centers & provide wearable device proof of insurability • U.S. Data - “Only 46% of middle-market consumers have individual life insurance….however, employees under Age 45 say they find it more comfortable to purchase online “

Source: 2014 Employee Benefit News and SourceMedia, Inc.

89

WELL-BEING BENEFITS MAY APPEAL TO:

Younger customers, who tend to focus on staying fit & healthy

Aging segments (pre-retirees & retirees)

Choosing to lead a healthy lifestyle & actively

attempting to delay onset of chronic diseases

An opportunity to expand the life insurance market

90

Source: http://www.lifehealthpro.com/2014/02/12/resuscitating-the-life-insurance-business-model\

ELIZABETH HOLMES FOUNDER & CEO - THERANOS

Blood is drawn with a finger stick - rather than a needle in the arm

Theranos - One drop. A world of answers

“Our laboratory can precisely analyze tiny samples.

A few drop are all we need to perform most tests.

So now, you can have your labs – from blood, urine,

fluids and more – done quickly, easily, and accurately”

• One drop of blood is enough for dozens of different tests and the procedure can be conducted at a pharmacy, with results arriving within 4 hours.

List of tests available at https://www.theranos.com/#!/test-menu?ref=our_solution

Imagine a “snapshot”- style discount being available to life insurance

shoppers for submitting periodic test results that prove their blood pressure,

diabetes or cholesterol is under control

Sources: https://www.theranos.com/#!/our-solution

http://singularityhub.com/2013/11/18/small-fast-and-cheap-theranos-is-the-poster-child-of-med-tech-and-its-in-walgreens/

91

1.29 cm

https://www.theranos.com/#!/our-solution





































TRUE WELL BEING DISCOUNTS?

• To encourage sharing of personal health information

insurers could provide policyholders both:

FINANCIAL INCENTIVES

(e.g., decrease in premiums)

NON-FINANCIAL INCENTIVES

(e.g., physical health and psychological) benefits

92

DO WEARABLES HAVE VALUE?

A lot needs to be done to convince people that Wearables

have value:

93


Including - The people that make up the technology companies

AND

PPeople that create the technology companies

94


AND

Users they are targeting

95

Users they are targeting

INTEL FUTURIST STEVE BROWN

2014 Keynote address:

“Up to now, the industry has concentrated on doing what

is possible rather than what people want”

96

Source to see samples of new devices http://www.theguardian.com/technology/gallery/2014/mar/20/london-wearable-tech-show-2014-pictures

FUTURIST & AUTHOR PATRICK TUCKER

“ We are going to see the normalization of wearable tech as we did with the Internet,” ….

“Even people who don’t look forward to the prospect of buying a wearable device will still benefit from the data that is collected about topics including fitness and health.”

Source: Patrick Tucker, a futurist & author of the book “The Naked Future: What Happens In A World That Anticipates Your Every Move?”

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PRIVACY POLICY SHOULD INCLUDE INFORMATION SUCH AS:

• Who is collecting the data?

• What is being collected?

• When is data collected?

• What will the data be used for?

• How long will the data be kept?

• How can the user access and control the data?

• Will the data be shared with third parties?

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Tom Cruise – The Minority Report

DESPITE PRIVACY CONCERNS…

• Positive potential for businesses, health care & insurers

IS:

Consumer electronics corporations must develop smart, connected,

& secure devices that simplify a user’s life - without compromising security

Need wisdom to ignore technology

- when it leads us in the wrong direction!

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WEARABLE TECHNOLOGY NEEDS TO BE

Power Efficient Small

Footprint

100


Small Footprint

101


Power Efficient

Accurate Cost Effective

Small Footprint Connected

Long Battery Life

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THERE IS ALSO THE FUNDAMENTAL QUESTION …..

Will people ever be comfortable having their health data monitored

this extensively????

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THERE IS ALSO THE FUNDAMENTAL QUESTION….

Will people ever be comfortable having their health data monitored

this extensively????

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IN CONCLUSION

• In a way…..

Future of Wearables is to become

“Unaware-ables”

“To serve consumers best when they call as little attention as possible to

their own exquisite cleverness”

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It’s not what you wear…

It’s how are you connected!

R: 27 G: 41 B: 82

R: 54 G: 129 B: 181

R: 103 G: 104 B: 104

R: 215 G: 213 B: 213

R: 179 G: 106 B: 172

R: 244 G: 144 B: 37

R: 99 G: 190 B: 96

R: 150 G: 23 B: 64

Colour Codes

Questions?

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Thank You!

Q & A

Documents

Barry's 2015 CRC presentation with new CRC ppt template