Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • February 2016
02

Data modelling helps improve customers' health, says life insurer

Open-access content Monday 8th February 2016 — updated 4.02pm, Thursday 30th April 2020

Modelling brings opportunities to improve care and people's health, according to Vitality.

Pierre Du Toit, head of big data analytics, said firms needed to understand why clients chose a particular lifestyle, adding: "It is important to think why we do what we do. Why are we eating a piece of cake rather than an apple?"

As one of the presenters on the webinar Getting the most out of modelling, organised by The Actuary, he outlined three behaviours behind the choices people make. 

First, Du Toit suggested people were "overly optimistic" about their health. Second, he said people were "present bias", meaning, they prefer an immediate benefit rather than a much bigger payout in the future.

Finally, he mentioned "nudge theory", where people respond well to incentives.

He said insurers could use data modelling to help policyholders understand their health. For instance by completing a health review, a 'vitality age' - the customer's health age as opposed to their actual age - could be determined. 

"Take for example of a 45-year-old male," he said. "Suppose he has a poor diet, high BMI, smokes and has low levels of physical activity. Then he will have increased mortality risk. Vitality age will reflect this, with expected years of his life lost and, as a result, it will be higher than his chronological age."

Once clients understand their health status, insurers need to focus on how to help and improve their health through rewards and incentives, such as cinema tickets and discounted holidays. 

Apart from adding value to individuals, Du Toit argued this could benefit insurers, as the firm noticed members who were more engaged with the programme had much lower claims and lapse rates, therefore, bringing higher margins of profit. 

 

To the wider society, he said higher engagement resulted in lower absence and higher levels of staff productivity.

This article appeared in our February 2016 issue of The Actuary.
Click here to view this issue
Filed in
02
Topics
Health care

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

New Fast-Growing Team - Actuarial Systems Development

London (Greater)
Excellent Salary Package
Reference
143762

Actuarial Pension Consultant – Scotland/Remote – Up to £90,000 plus bonus

Edinburgh / Glasgow / Remote working
Up to £90,000 + Bonus
Reference
143761

Part Qualified Pensions Actuary– Specialised Pensions Consultancy - Scotland/Remote - Up to £70,000

Edinburgh / Glasgow / Remote working
Up to £70,000 + Bonus
Reference
143760
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ