Imagine if your group life insurance adapted in real time, rewarding your morning runs and flagging potential health risks before they arose. What once felt like science fiction is quickly becoming reality, driven by the rise of connected devices and, critically, artificial intelligence.
Empowering proactive decisions
Connected devices alone generate data. AI is the turning point that makes that data meaningful. Together, they are shifting insurance from a static, reactive product into a dynamic, preventative service that supports people every day, not only when something goes wrong.
Connected devices are already reshaping the group insurance landscape. From wearables and smart health tools to workplace telehealth platforms, insurers can now gain real-time insight into behaviour, health trends and risk profiles. When paired with AI, this data can be analysed at scale to predict risk earlier, personalise cover and intervene before issues escalate.
YuLife CTO Josh Hart describes this shift as a fundamental reimagining of insurance itself.
“Most people only think about insurance when something bad happens,” he explains. “It’s a product built around worst-case scenarios. Connected devices flip that logic. They allow insurance to become a tool for living better, not just protecting against the worst.”
Devices, he notes, provide insight across the lifetime of a policy, helping individuals reduce health risks and insurers reduce claims volatility. AI turns those insights into foresight.
What are connected devices in insurance, and why do they matter?
A connected device in insurance is any technology that collects and transmits behavioural or health data. Think smartwatches, step counters, heart rate and sleep monitors, and even smart scales.
For insurers, this data unlocks far more than numbers. It enables earlier risk detection, more personalised support and a shift from paying claims after the fact to helping prevent them altogether. AI plays a crucial role here by identifying patterns, flagging emerging risks and surfacing insights humans would struggle to detect manually.
Hart draws a useful parallel with flood insurance. Traditionally, insurers paid out after damage occurred. Today, leak sensors can detect issues early, preventing major losses altogether. Health insurance, he suggests, can evolve in the same way. Using connected devices and AI to identify risk early and take action before problems escalate.
A shift in how policies are priced, sold and renewed
As health data becomes more accessible, many of the most admin-heavy insurance processes may disappear.
“The number of boring questions I have to answer when opening a policy will be reduced because my watch might autofill my policy,” Hart explains. “We’re not removing the questions, we’re changing where the data lives.”
AI enables this shift by assessing risk continuously across the life of a policy, rather than relying on static snapshots at onboarding. This allows pricing models, capital requirements and claims forecasting to become more accurate over time.
Hart compares this evolution to the rise of Uber. “When Uber launched, it technically broke existing regulations. Insurance will likely follow a similar path – not a revolution, but an evolution.”
Traditionally, insurers relied on historical actuarial models. Now, real-time behavioural data allows risk to be assessed dynamically. That creates efficiencies for insurers and fairer outcomes for individuals.
“If you can price more accurately, you may write slightly less premium, but you’ll grow your customer base by being better and faster.”
The ethical dilemma: who benefits from your data?
With greater data comes greater responsibility. There is a fine line between rewarding healthy behaviour and penalising people for circumstances beyond their control.
“We don’t want to live in a world where someone can’t get insurance because they shared their data,” says Hart. “The goal is to make insurance more efficient and fairer for the individual.”
Transparency is essential. People need to understand what data is collected, why it’s needed and how it benefits them. AI systems must be explainable, ethical and built to support fairness rather than reinforce bias.
Hart acknowledges concerns around sensitive health data but believes the opportunity outweighs the risk when it’s handled responsibly.
“If we do this well, we can build a model that helps people avoid getting ill in the first place. That’s better for insurers and for the insured.”
From individual prevention to organisational value
South Africa has some of the world’s highest mortality rates from preventable or treatable conditions. This is where connected devices and AI-enabled insights can have the greatest impact.
YuLife combines behavioural science, gamification and connected devices to motivate healthier daily habits. The data shows that people who engage with these tools materially change their behaviour.
AI allows these behaviour shifts to be measured and scaled across organisations. For insurers, that means fewer claims and more stable portfolios. For employers, it means healthier, more productive workforces.
“If we know health behaviours are improving in real time, we don’t need to carry as much capital against a policy,” Hart explains. “It allows us to run the business more efficiently.”
A more human model of insurance
For Hart, engagement is the real differentiator. “Insurance is a lifetime relationship. It needs to provide value every day,” he says.
AI-powered personalisation will be central to this future. Delivering timely nudges, meaningful rewards and relevant support without overwhelming users.
YuLife was designed around this philosophy. Its gamified app encourages daily interaction, creating an insurance experience people actually want to engage with. “Our goal was to build something worthy of five minutes of your life each day,” says Hart. Connected devices are changing how insurance is priced. AI is changing how it thinks. Together, they are making insurance more preventative, more responsive and ultimately, more human.