One innovation potentially coming into the voluntary benefit area is tracking reports from employee's wearable technology. Many employers foster employee wellness by sponsoring wearable tech. If auto insurers can use driving data picked up from sensors in your car to more accurately price auto coverage, why shouldn't voluntary benefit carriers use statistics on steps walked, heart rate, etc. from wearable tech to offer better rates to (presumably) more healthy risks?

As noted in my June 2015 column, the line between privacy, notably privacy of health information, and widespread availability of information is a big issue. People aren't as uncomfortable about public databases containing their driving record as they are about their health records. Plus, employer discrimination against employees based on their employee's health records is prohibited, and application of data from wearable tech in benefit pricing or underwriting could cross the line. We can expect to see innovation in this area, though the issues involved in adapting this to voluntary benefits are complex.

These examples tell us a bit about how innovation is beginning to move into our business. Innovation always has its roots in a purpose, a goal. The ultimate measure of success is happy customers that retain products and are open to buying more. Time will tell how we innovate in the benefits business to achieve that goal.