Wearable Devices

Data From the Front Line

Data collected by wearables can make claims more clear-cut, and help prevent future incidents.
By: | April 4, 2016 • 6 min read

The insurance industry has so far used wearable technology as either a post-event tool — to track a workers’ comp claimant’s physical progress and treatment compliance after an injury, for example — or as an incentive to get insureds to live healthier lifestyles and reduce losses for the insurer.


But incorporating wearables into the workforce on a broader scale has other advantages. Hopes are that they can help claims managers expedite the process and help risk managers avoid incidents altogether.

Transportation and logistics companies already make use of tracking and data recording devices in vehicle fleets to track speed, idling time and rates of acceleration, among other metrics.

In the event of an accident, that data can be used to either vindicate or build a case against a driver. It tells claims managers what really happened. Wearable devices embedded or attached to a worker’s clothing could serve a similar purpose.

VIDEO: This animation by Deloitte shows how wearable technology could enhance safety in the mining industry.

“In the event of an accident or injury, wearables that detect motion or location by GPS could determine where an employee was, how fast they were moving or how far they fell.

“Wearables may allow you to gather more information about what transpired during an event and what led up to it,” said Tom Heebner, senior vice president and risk consultant, HUB International.

“There’s usually not much objective data to understand that cause and effect of events that led to a claim.”

Rather than interviewing a claimant and other witnesses, an adjuster could simply review data logs to ascertain some of the details of an incident.

Safety and Injury Prevention

Wearables equipped with GPS tracking can also impact safety in high-risk industries and prevent claims from happening at all.

Zack Craft, vice president of rehab solutions and complex care education, One Call Care Management

Zack Craft, vice president of rehab solutions and complex care education, One Call Care Management

“On a construction site, for example, supervisors could set parameters around a specific area where an individual shouldn’t go because they may not have the right level of training or the area could be of higher risk,” said Zack Craft, vice president of rehab solutions and complex care education, One Call Care Management.

“Workers equipped with a wearable device would be notified by an alarm if they enter an off limits or possible high-risk area.”

Similarly, a wearable that can detect environmental toxins could alert a worker to high concentrations of a harmful substance it’s been programmed to sniff out. Certain airborne toxic substances are undetectable by smell; workers wouldn’t be able to sense when they are reaching dangerous levels.

In addition to alerting workers, the device could transmit data back to management so they can track trends in toxicity levels or pinpoint locations that are most hazardous.

Honeywell and Intel have already launched a product that does just that, called “The Connected Worker” solution. This system makes use of several sensors in a self-contained breathing apparatus, a heart rate monitor, and several smaller devices that detect toxic gases, motion and “non-verbal gestures.”


The devices send data back to a hub that compiles the information and displays it on a cloud-based dashboard, giving plant managers and supervisors real-time reporting that allows them to anticipate and respond to unsafe conditions.

“I see this having broad applications. Some industries have a higher degree of hazard or rates of incidents — like construction and manufacturing,” said Heebner.

“There are also tons of benefits for any company with a mobile workforce. … If you have employees that are on their own all day, monitoring devices allows them to provide feedback to either reduce hazards or boost productivity.”

Tracking capabilities can also be used for remote workers or first responders. In an emergency, supervisors could locate their workers and get them to safety faster.

Catastrophe Response

Wearables help adjusters provide real-time feedback in a catastrophe claim. Google Glass has already been used for this purpose on a small scale by Alpharetta, Ga.-based adjusting firm National ConnectForce Claims.

In order to expedite claims, NCC can equip our first wave of adjusters with Google Glass. Our first wave can literally be the eyes and ears for remote experts.” — Matt Anderson, chief operating officer, National ConnectForce Claims

“We have a number of clients that depend on us for earthquake response and we are constantly training and preparing for the next big one,” said Matt Anderson, chief operating officer.

“One challenge the insurance industry will face following an earthquake is limited availability of experts like engineers. In order to expedite claims, NCC can equip our first wave of adjusters with Google Glass. Our first wave can literally be the eyes and ears for remote experts.”

Transmitting that data saves travel time for those remote experts who, according to Anderson, can spend more than six hours traveling between sites after a CAT event.

Roadblocks to Implementation

A few obstacles prevent widespread adoption of wearable technology — foremost is privacy.  Many employees would balk at the idea of being constantly tracked and monitored. And the storage of personal data poses risks in the event of a breach.

But One Call’s Craft said he thinks the risk is limited, because much of the data collected isn’t personally identifiable information.

Getting people to embrace [wearables] will take communicating it the right way.” — Tom Heebner, senior vice president and risk consultant, HUB International

Developers and users of wearable devices will have to determine what might fall under HIPAA protection.

Generational difference will affect the perception of intrusiveness versus usefulness, Craft said. Millennials, the bulk of the wearables customer base, are used to digital technology in every aspect of their lives.

According to a PwC report, more than half of millennials will purchase some type of wearable fitness tracker in the consumer market in 2016.

Older generations are more likely to see wearable devices as intrusive and unnecessary. But that perception can be changed if employers and insurers cast wearable tech in a positive light and highlight its purpose as a safety tool.

“A lot of it comes down to the employer’s intent and how they deliver that message,” Heebner said, the same with other safety equipment.

“Whether we want people to wear respirators or be able to track their vehicle with a telematics system. A major benefit of monitoring is to ensure productivity, but safety and risk management are major drivers as well. Getting people to embrace it will take communicating it the right way.”

Craft and Heebner both noted that workers historically reacted negatively to equipment that is now standard, such as lumbar vests and safety goggles. They said once people realize the benefits for their safety, they become more amenable to an idea.

A second obstacle is the relatively narrow applications that most wearable devices have. Going back to the worker exposed to hazardous substances, his wearable may be able to detect high concentrations of carbon monoxide, but not hydrogen sulfide.


The vest of a construction worker may be able to measure heat exposure, but not heart rate or blood pressure.

“Real value will emerge when wearables can be a solution to multiple problems and provide a variety of data,” Heebner said.

Until then, many risk managers and CFOs won’t see wearables as worth the investment.

“The most exciting part about wearable technology,” said Heebner, “is that if there isn’t something today, there will be something tomorrow.”

Katie Dwyer is an associate editor at Risk & Insurance®. She can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Exclusive | Hank Greenberg on China Trade, Starr’s Rapid Growth and 100th, Spitzer, Schneiderman and More

In a robust and frank conversation, the insurance legend provides unique insights into global trade, his past battles and what the future holds for the industry and his company.
By: | October 12, 2018 • 12 min read

In 1960, Maurice “Hank” Greenberg was hired as a vice president of C.V. Starr & Co. At age 35, he had already accomplished a great deal.

He served his country as part of the Allied Forces that stormed the beaches at Normandy and liberated the Nazi death camps. He fought again during the Korean War, earning a Bronze Star. He held a law degree from New York Law School.


Now he was ready to make his mark on the business world.

Even C.V. Starr himself — who hired Mr. Greenberg and later hand-picked him as the successor to the company he founded in Shanghai in 1919 — could not have imagined what a mark it would be.

Mr. Greenberg began to build AIG as a Starr subsidiary, then in 1969, he took it public. The company would, at its peak, achieve a market cap of some $180 billion and cement its place as the largest insurance and financial services company in history.

This month, Mr. Greenberg travels to China to celebrate the 100th anniversary of C.V. Starr & Co. That visit occurs at a prickly time in U.S.-Sino relations, as the Trump administration levies tariffs on hundreds of billions of dollars in Chinese goods and China retaliates.

In September, Risk & Insurance® sat down with Mr. Greenberg in his Park Avenue office to hear his thoughts on the centennial of C.V. Starr, the dynamics of U.S. trade relationships with China and the future of the U.S. insurance industry as it faces the challenges of technology development and talent recruitment and retention, among many others. What follows is an edited transcript of that discussion.

R&I: One hundred years is quite an impressive milestone for any company. Celebrating the anniversary in China signifies the importance and longevity of that relationship. Can you tell us more about C.V. Starr’s history with China?

Hank Greenberg: We have a long history in China. I first went there in 1975. There was little there, but I had business throughout Asia, and I stopped there all the time. I’d stop there a couple of times a year and build relationships.

When I first started visiting China, there was only one state-owned insurance company there, PICC (the People’s Insurance Company of China); it was tiny at the time. We helped them to grow.

I also received the first foreign life insurance license in China, for AIA (The American International Assurance Co.). To date, there has been no other foreign life insurance company in China. It took me 20 years of hard work to get that license.

We also introduced an agency system in China. They had none. Their life company employees would get a salary whether they sold something or not. With the agency system of course you get paid a commission if you sell something. Once that agency system was installed, it went on to create more than a million jobs.

R&I: So Starr’s success has meant success for the Chinese insurance industry as well.

Hank Greenberg: That’s partly why we’re going to be celebrating that anniversary there next month. That celebration will occur alongside that of IBLAC (International Business Leaders’ Advisory Council), an international business advisory group that was put together when Zhu Rongji was the mayor of Shanghai [Zhu is since retired from public life]. He asked me to start that to attract foreign companies to invest in Shanghai.

“It turns out that it is harder [for China] to change, because they have one leader. My guess is that we’ll work it out sooner or later. Trump and Xi have to meet. That will result in some agreement that will get to them and they will have to finish the rest of the negotiations. I believe that will happen.” — Maurice “Hank” Greenberg, chairman and CEO, C.V. Starr & Co. Inc.

Shanghai and China in general were just coming out of the doldrums then; there was a lack of foreign investment. Zhu asked me to chair IBLAC and to help get it started, which I did. I served as chairman of that group for a couple of terms. I am still a part of that board, and it will be celebrating its 30th anniversary along with our 100th anniversary.


We have a good relationship with China, and we’re candid as you can tell from the op-ed I published in the Wall Street Journal. I’m told that my op-ed was received quite well in China, by both Chinese companies and foreign companies doing business there.

On August 29, Mr. Greenberg published an opinion piece in the WSJ reminding Chinese leaders of the productive history of U.S.-Sino relations and suggesting that Chinese leaders take pragmatic steps to ease trade tensions with the U.S.

R&I: What’s your outlook on current trade relations between the U.S. and China?

Hank Greenberg: As to the current environment, when you are in negotiations, every leader negotiates differently.

President Trump is negotiating based on his well-known approach. What’s different now is that President Xi (Jinping, General Secretary of the Communist Party of China) made himself the emperor. All the past presidents in China before the revolution had two terms. He’s there for life, which makes things much more difficult.

R&I: Sure does. You’ve got a one- or two-term president talking to somebody who can wait it out. It’s definitely unique.

Hank Greenberg: So, clearly a lot of change is going on in China. Some of it is good. But as I said in the op-ed, China needs to be treated like the second largest economy in the world, which it is. And it will be the number one economy in the world in not too many years. That means that you can’t use the same terms of trade that you did 25 or 30 years ago.

They want to have access to our market and other markets. Fine, but you have to have reciprocity, and they have not been very good at that.

R&I: What stands in the way of that happening?

Hank Greenberg: I think there are several substantial challenges. One, their structure makes it very difficult. They have a senior official, a regulator, who runs a division within the government for insurance. He keeps that job as long as he does what leadership wants him to do. He may not be sure what they want him to do.

For example, the president made a speech many months ago saying they are going to open up banking, insurance and a couple of additional sectors to foreign investment; nothing happened.

The reason was that the head of that division got changed. A new administrator came in who was not sure what the president wanted so he did nothing. Time went on and the international community said, “Wait a minute, you promised that you were going to do that and you didn’t do that.”

So the structure is such that it is very difficult. China can’t react as fast as it should. That will change, but it is going to take time.

R&I: That’s interesting, because during the financial crisis in 2008 there was talk that China, given their more centralized authority, could react more quickly, not less quickly.

Hank Greenberg: It turns out that it is harder to change, because they have one leader. My guess is that we’ll work it out sooner or later. Trump and Xi have to meet. That will result in some agreement that will get to them and they will have to finish the rest of the negotiations. I believe that will happen.

R&I: Obviously, you have a very unique perspective and experience in China. For American companies coming to China, what are some of the current challenges?


Hank Greenberg: Well, they very much want to do business in China. That’s due to the sheer size of the country, at 1.4 billion people. It’s a very big market and not just for insurance companies. It’s a whole range of companies that would like to have access to China as easily as Chinese companies have access to the United States. As I said previously, that has to be resolved.

It’s not going to be easy, because China has a history of not being treated well by other countries. The U.S. has been pretty good in that way. We haven’t taken advantage of China.

R&I: Your op-ed was very enlightening on that topic.

Hank Greenberg: President Xi wants to rebuild the “middle kingdom,” to what China was, a great country. Part of that was his takeover of the South China Sea rock islands during the Obama Administration; we did nothing. It’s a little late now to try and do something. They promised they would never militarize those islands. Then they did. That’s a real problem in Southern Asia. The other countries in that region are not happy about that.

R&I: One thing that has differentiated your company is that it is not a public company, and it is not a mutual company. We think you’re the only large insurance company with that structure at that scale. What advantages does that give you?

Hank Greenberg: Two things. First of all, we’re more than an insurance company. We have the traditional investment unit with the insurance company. Then we have a separate investment unit that we started, which is very successful. So we have a source of income that is diverse. We don’t have to underwrite business that is going to lose a lot of money. Not knowingly anyway.

R&I: And that’s because you are a private company?

Hank Greenberg: Yes. We attract a different type of person in a private company.

R&I: Do you think that enables you to react more quickly?

Hank Greenberg: Absolutely. When we left AIG there were three of us. Myself, Howie Smith and Ed Matthews. Howie used to run the internal financials and Ed Matthews was the investment guy coming out of Morgan Stanley when I was putting AIG together. We started with three people and now we have 3,500 and growing.

“I think technology can play a role in reducing operating expenses. In the last 70 years, you have seen the expense ratio of the industry rise, and I’m not sure the industry can afford a 35 percent expense ratio. But while technology can help, some additional fundamental changes will also be required.” — Maurice “Hank” Greenberg, chairman and CEO, C.V. Starr & Co. Inc.

R&I:  You being forced to leave AIG in 2005 really was an injustice, by the way. AIG wouldn’t have been in the position it was in 2008 if you had still been there.


Hank Greenberg: Absolutely not. We had all the right things in place. We met with the financial services division once a day every day to make sure they stuck to what they were supposed to do. Even Hank Paulson, the Secretary of Treasury, sat on the stand during my trial and said that if I’d been at the company, it would not have imploded the way it did.

R&I: And that fateful decision the AIG board made really affected the course of the country.

Hank Greenberg: So many people lost all of their net worth. The new management was taking on billions of dollars’ worth of risk with no collateral. They had decimated the internal risk management controls. And the government takeover of the company when the financial crisis blew up was grossly unfair.

From the time it went public, AIG’s value had increased from $300 million to $180 billion. Thanks to Eliot Spitzer, it’s now worth a fraction of that. His was a gross misuse of the Martin Act. It gives the Attorney General the power to investigate without probable cause and bring fraud charges without having to prove intent. Only in New York does the law grant the AG that much power.

R&I: It’s especially frustrating when you consider the quality of his own character, and the scandal he was involved in.

In early 2008, Spitzer was caught on a federal wiretap arranging a meeting with a prostitute at a Washington Hotel and resigned shortly thereafter.

Hank Greenberg: Yes. And it’s been successive. Look at Eric Schneiderman. He resigned earlier this year when it came out that he had abused several women. And this was after he came out so strongly against other men accused of the same thing. To me it demonstrates hypocrisy and abuse of power.

Schneiderman followed in Spitzer’s footsteps in leveraging the Martin Act against numerous corporations to generate multi-billion dollar settlements.

R&I: Starr, however, continues to thrive. You said you’re at 3,500 people and still growing. As you continue to expand, how do you deal with the challenge of attracting talent?

Hank Greenberg: We did something last week.

On September 16th, St. John’s University announced the largest gift in its 148-year history. The Starr Foundation donated $15 million to the school, establishing the Maurice R. Greenberg Leadership Initiative at St. John’s School of Risk Management, Insurance and Actuarial Science.

Hank Greenberg: We have recruited from St. John’s for many, many years. These are young people who want to be in the insurance industry. They don’t get into it by accident. They study to become proficient in this and we have recruited some very qualified individuals from that school. But we also recruit from many other universities. On the investment side, outside of the insurance industry, we also recruit from Wall Street.

R&I: We’re very interested in how you and other leaders in this industry view technology and how they’re going to use it.

Hank Greenberg: I think technology can play a role in reducing operating expenses. In the last 70 years, you have seen the expense ratio of the industry rise, and I’m not sure the industry can afford a 35 percent expense ratio. But while technology can help, some additional fundamental changes will also be required.

R&I: So as the pre-eminent leader of the insurance industry, what do you see in terms of where insurance is now an where it’s going?

Hank Greenberg: The country and the world will always need insurance. That doesn’t mean that what we have today is what we’re going to have 25 years from now.

How quickly the change comes and how far it will go will depend on individual companies and individual countries. Some will be more brave than others. But change will take place, there is no doubt about it.


More will go on in space, there is no question about that. We’re involved in it right now as an insurance company, and it will get broader.

One of the things you have to worry about is it’s now a nuclear world. It’s a more dangerous world. And again, we have to find some way to deal with that.

So, change is inevitable. You need people who can deal with change.

R&I:  Is there anything else, Mr. Greenberg, you want to comment on?

Hank Greenberg: I think I’ve covered it. &

The R&I Editorial Team can be reached at [email protected]