Insurance companies should incentivize prevention measures, study finds

Incentivizing preventative measures would benefit both payers and the individuals they insure, according to a new study published in the Harvard Business Review.

Researchers drew attention to the South African insurance company Discovery, which developed their Vitality program 25 years ago. Vitality provides incentives for their enrollees to live healthy lifestyles, ranging from gym memberships to lowered premiums and free travel perks.

Members of the Vitality program live 13 to 21 years longer than the rest of the insured population and Discovery saves money based on fewer claims filed. The study authors encourage American insurers to consider implementing similar shared-value systems for the sake of their own bottom line and for the good of the people they cover.

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