Apple will start offering Health insurance Analysts predict growth in 2024 based on health data pulled from the Apple Watch.
CCS Insight believes Apple is taking a tentative first step into the U.S. health insurance market by partnering with major insurers to use the health data it already collects to gain a competitive edge over rivals. .
Apple already collects data from the Watch like blood pressure, blood oxygen levels, ECG readings and body temperature to help people adjust their medications. With the included device, you can also use your Watch and iPhone to monitor conditions like diabetes.
Analysts believe that having access to such rich data will give the company a head start in the insurance market and reduce costs for consumers.
CCS Insight Chief Analyst Ben Wood said: “They are getting a wealth of personal health data through the Apple Watch. Combine a few dots and you could be a very competitive health insurance player, and that’s a big part of the US healthcare market. It can have a big impact on the structure.”
Apple Watch or Trojan Horse?
A move like this would call into question whether Apple launched the Watch with the long-term goal of entering the lucrative health insurance market. Wood doesn’t believe the Apple Watch was launched with that ambition in mind, but Apple now sees it as a way to bolster its services business.
Wood said that while the Apple Watch began as a fashion accessory, “Tim Cook steered the Watch into the health and fitness arena, reaching an area that resonated with consumers.”
“I think it was a natural evolution, not a Trojan horse. All of a sudden, they look at the data they have and say, ‘Should we get into the healthcare industry?
“Healthcare is a deeply social thing that Apple wants to fix,” added Wood.
Strong service business
A shift to health insurance would give Apple more momentum for its already booming services business. The service has already generated about $20 billion per quarter, and CCS Insight believes that will continue to grow.
Analysts predict that by 2030, one-third of Apple’s revenue will come from software and services. It now accounts for just under a quarter of our business.