Allstate, John Hancock alliance and what it could mean for the future

Allstate and John Hancock recently announced a partnership to reward John Hancock Vitality members with points if the policyholder is also a safe driver with the Allstate Drivewise program. The alliance is the first of its kind and could be an indicator of where the insurance industry may be going.

Brooks Tingle, the president and CEO of John Hancock, told Digital Insurance that the company is constantly studying the leading causes of death and looking for trends to enhance the Vitality program.

“After the lockdowns in 2020, people got back on the roads and motor vehicle deaths were increasing, whenever we see that we ask: ‘What can we do in Vitality?’” Tingle says. “We’re creating ecosystems where a consumer doing something positive in one way compliments something else.”

Motor vehicle deaths in the U.S. rose 18.4% in the first six months of 2021 over 2020, according to data from theU.S. Department of Transportation’s National Highway Traffic Safety Administration.

Harry Huberty, head of CIO research at Aite-Novarica, says one of the interesting things about this collaboration is that John Hancock is making use of information that is already available.

“The policyholders who participate in this program have probably already independently enrolled in telematics-backed auto policies,” Huberty says. “Asking them to share that information doesn’t really cost John Hancock anything beyond the discount, and it may have benefits for them in terms of loyalty and retention.”

Huberty added that John Hancock has been working on innovative programs for a few years like its Apple Watch program, which was launched in 2016.

“This represents another instance of John Hancock pushing forward to offer (rewards) based on information policyholders share with them about their lifestyles,” Huberty says. “I suspect that, like with their Apple Watch program, John Hancock will probably be almost or completely unique in offering this benefit for a while. But if this is successful for them it could be the sort of thing other life insurers do adopt, especially since they don’t shoulder much in the way of additional costs. It’s also a program that multi-line carriers that already have their own telematics programs might be interested in—if they get permission from their auto policyholders to share data with other lines internally, they could offer (rewards) from their life insurance lines.”

Mary Nelson, the vice president of Allstate life and retirement and the financial services president and CEO, says that customers will have more meaningful and engaging experiences with partnerships like this.

“By bringing together the Drivewise and Vitality programs, agents and financial specialists are also able to strengthen customer relationships while differentiating themselves from the competition,” Nelson says.

John Hancock plans to integrate more safe driving programs into Vitality in the future.

“These partnerships make sense,” Tingle says. “We are good at life insurance but there are others that are good at auto insurance. We don’t believe we have to be the sole source of that value creation. We are not going to get into the auto insurance business but when you think about the power and value of being a part of an ecosystem that includes multiple types of products. I think it is compelling.”

Tingle added that in the future the Vitality program may consider other alliances using similar connected technology in homes.

“There is a wave of technological advancement with respect to homes that not only provide security and convenience but are related to health, wellness and longevity,” Tingle says. “Ultimately, John Hancock Vitality is going to evolve and go down paths that correlate with longevity and healthier lives.”