The Indian pharmaceuticals firm ICICI-Prudential16 offers a service package for diabetes patients which can result in lower life insurance premiums. If diabetes patients have a healthy lifestyle and use the drug in the prescribed way, they pay a lower insurance premium if health checks can verify the patient’s behaviour.

Prevention of chronicle illnesses can be taken care of through new forms of healthcare programmes.

Together with pharmaceutical firms, diagnostic firms, testing firms, gyms and fitness clubs, ICICI Prudential is able to offer a new form of health care program. For example, diabetes patients are encouraged to live healthily and stay fit. If they follow the programme designed for them, patients will obtain a lower premium on their health insurance.

Data on customers’ behaviour and lifestyle gets collected through a web-based monitoring system by testing patients periodically in diagnostic clinics. The patients get access to a web site, where they can get access through a log in to recent data on their personal health condition. This can help them to stay motivated on maintaining their activities. Through the collected data, ICICI Prudential can measure the risk on each customer individually and offer the customer individual pricing.

This solution does not rely on new biotechnology, but it does rely on the latest IT as an enabler of a new solution at reasonable cost.

Source: Prahalad & Krishnan (2008)