Surveillance in Telematics: A Growing Trend
After circling the parking lot a few times, I finally snagged an empty spot. Just as I pressed the gas, an SUV zipped in front of me and took that space instead. I slammed on the brakes, coming to a screeching stop. You might be tempted to forgive the driver, but your car? It won’t forget.
On my way home, I noticed a new restaurant had opened up at the corner. Suddenly, my car beeped loudly, pulling my attention back to the road. The dashboard chimed in, advising, “Keep your eyes on the road.” It’s a little unsettling to think about, but when you glance away or hit the brakes too hard, that information is sent to your insurance company. It all feeds into algorithms that could affect your future premiums.
This kind of monitoring is known as telematics. Insurance companies promise to lower your rates in exchange for sharing detailed driving data. However, a report by the Maryland Department of Insurance revealed that the changes in premiums were mixed, and there was no significant overall savings. Yet, that hasn’t stopped companies from moving forward with this model.
As telematics expands within auto insurance, the focus is shifting toward our health. Health officials and insurance executives are advocating for similar systems to be integrated into everyday healthcare. Robert F. Kennedy Jr., Secretary of Health, expressed a vision where every American would wear a health-monitoring device within four years. He argues these devices, which track metrics like sleep and heart rate, will empower Americans to take control of their health. There are indeed numerous gadgets available now that monitor everything from daily steps to hormone levels.
But if the history of telematics in car insurance has shown us anything, it’s to approach these promises with caution, especially when they come from companies.
Several important ethical issues for consumers still linger.
First of all, it’s not clear that wearable technology actually leads to lower overall healthcare costs. Instead, it seems to serve a different purpose for insurance companies.
Second, there are serious privacy concerns when it comes to sharing personal data so openly. Just how is your information used, and how secure is it?
More broadly, initiatives focused on wearables tend to promote an individualistic view of health that overlooks the influence of social factors and inequalities on long-term health risks. These risks could be more effectively addressed through comprehensive health policies. Instead, there seems to be a push to just equip everyone with a device.
Despite these lingering questions, the health and life insurance sectors are already adopting telematics-like tracking. Programs like John Hancock’s Vitality and UnitedHealthcare’s Wellness Rewards offer incentives such as discounts and gift cards for maintaining “healthy” behaviors.
At the same time, there are plans to utilize federal resources to speed up the adoption of wearables. A strategic report from the White House mentions linking wearable data to electronic medical records. The FDA also made moves to reclassify AI-driven wearables, stating they won’t be treated as heavily regulated medical devices unless they claim to diagnose or treat health issues.
There is potential for wearables to spark positive changes. Ideally, this could lead to lower health insurance premiums and healthier lifestyles for Americans. One doctor I spoke with noted that patients who bring data from wearables to their visits are often the most health-conscious ones. But this raises a question: Do health-conscious individuals seek out wearables, or do the devices encourage greater health awareness? The answer isn’t clear. Moreover, the data from wearables isn’t always substantial or reliable.
Moreover, there’s a considerable financial incentive for companies to use this consumer data to boost profits. In the auto sector, apps with catchy names like Drivewise and Snapshot gather as much information as possible about drivers and their habits. The hope is that this data will improve driving behavior and lower accident rates. Some studies suggest this works in trucking, but even then, success often requires additional coaching. In exchange for lower premiums, drivers essentially offer up their data, which insurance companies may then sell to third parties. One can’t help but wonder if the same scenario could unfold with health data.
Picture this: if you indulge in sugary coffee and miss your workouts, some anonymous algorithm could label you as someone likely to have a short lifespan. This data could be weaponized by insurance firms to hike up your premiums, categorizing you as high-risk. It’s crucial for those at risk to receive help, yet there’s a trend pushing the responsibility onto individuals to manage their own risks.
No level of personal optimization will protect you from unexpected events, like natural disasters or health crises. Whether it’s applied to car insurance or personal health, the telematics model isn’t a sound health strategy or policy. The insurance industry has long sought to minimize their payout responsibilities. As we embrace new technology and policies, there’s a real concern we might hand over control to entities already veering us off course.
About the authors: Dr. Andrea Becker is an assistant professor of sociology, focusing on health issues. Paul Kamff has transitioned from creative direction to sociology, studying how emerging technologies influence work and relationships.
