Insurance and wearables as tools in managing risk in sports: Determinants of technology take-up and propensity to insure and share data

Sports participants are actively adopting wearables to measure their performance but they can also be used to minimise and control risks. We investigate and compare the results of 272 runners and 265 soccer players to determine the current use of wearables as well as the propensity to purchase insurance services that are coupled with the wearable technology. This includes an inquiry into the factors that determine people’s readiness to share data with a potential insurance carrier. We use a Logit function to show that soccer players are more likely to purchase insurance as a means of protecting future income, especially at a younger age. We also find that perception of and experience with technology are key determinants of the use of wearables and the disposition to share insurance data for both cohorts. Wearables are also more likely to be adopted if offered at a lower pricing point. Finally, both cohorts are more likely to share their data with an insurer if they have a positive perception of the insurance industry and its products.