HOW WEARABLE

TECHNOLOGY
AFFECTS THE FUTURE
OF CORPORATE
HEALTH INSURANCE
CAROLINE MARAPESE, JOHN FELITTO, AMBER AULT, RYAN DOYLE, TABAHN AFRIK
EXECUTIVE SUMMARY
INTRODUCTION
The intersection of health insurance, healthcare, and cor-
porations has evolved as technology permeates more as-
pects of society, privacy concerns perpetuate, and health-
care costs continue to rise.

BACKGROUND
The health insurance sector has evolved from “sickness
funds” during the Civil War to modern comprehensive cov-
erage. There have been advances in the wearable tech-
nology industry due to new legislation, the rise of the Inter-
net of Things, the prevalence of health consciousness,
the increasing rate of diseases of affluence, the popularity
of telehealth, and the role of millennials. Throughout his-
tory, individuals have remained concerned about the secu-
rity of their data and employers have attempted to balance profit concerns with ethical dilemmas.

STAKEHOLDERS
Though the three primary stakeholders are employers, corporations, and health insurance providers,
the future of wearable technology in corporate America is also affected by technology firms, data col-
lecting companies, employees, and the government. Though each stakeholder has varying degrees
of influence and impact, there is consensus that health insurance premiums must be reduced.

KEY TRENDS IN DRIVERS AND CONSTRAINTS

The trajectory of corporate health insurance is affected by several key drivers and constraints involv-
ing demographic shifts, the passage of updated legislation, the rise nontraditional healthcare op-
tions, and continuous and discontinuous technological innovation.

BASELINE FORECAST
The baseline forecast is characterized primarily by updated legislation, continuous innovation, stake-
holder influence, increasing prevalence of nontraditional alternatives, and privacy concerns.

UNCERTAINTIES
The future of wearable technology in corporations is affected by uncertainties in regard to adoption
rate, future innovation, data privacy concerns, and unpredictable future legislation.

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SCENARIOS
There are four possible scenarios that could result from the interaction between key drivers and con-
straints and uncertainties. The alpha scenario would consist of next generation devices, updated pri-
vacy laws, health information management systems, and innovative health insurance policy options.
The beta scenario would be characterized by a lack of innovation, frequent data breaches, extensive
ethical concerns, and lost profit for corporations. The first delta scenario would consist of privacy con-
cerns that are improved by media attention of industry leaders’ best practices, changing leadership
of corporations, and health and budget improvements. The second delta scenario considers the
broad acceptance of wearable technology in the corporate sector, the rise of transhumanist ideology,
and advanced privacy laws.

STRATEGIC IMPLICATIONS FOR BUSINESS

There are several key business implications resulting from the rise of wearable technology in the cor-
porate sector. Nontraditional healthcare options will continue to increase in popularity and further inno-
vation will lead to new devices with revolutionary capabilities. New technology could help mitigate en-
vironmental damage and aid in resolving the opioid epidemic. Medical professionals have a high de-
gree of influence, since technology can make healthcare more efficient. Transhumanism could be-
come popular in the U.S. as individuals become more health conscious and embrace the role of tech-
nology in nearly every aspect of their lives. New markets will emerge for “smart” contacts, clothes,
and shoes as retailers compete for market share and consumer demand rises. Each of the many
stakeholders will determine the trajectory of wearable technology in the corporate sector by how they
respond to the challenges and opportunities presented by this shift.