MLC has introduced a wellness program that offers premium reductions through the use of smartwatches.

The On Track scheme uses wearable technology to measure physical activity and trigger rewards when wellness targets are achieved.

MLC EGM Insurance David Hackett says the company is on a journey of innovation, investing time, resources and money to ensure it meets customers’ evolving needs.

“For too long companies have relied on old ways to do business,” he said. “We want to create more value for an insurance customer than the policy itself.”

On Track customers will be given wellness targets based on factors including step count, active hours, sleep duration and average resting heart rate.

They will have 90-160 days to achieve their target, to receive a 5% discount.

There will be two such opportunities, giving a potential discount of 10% for the life of the policy.

“Our customers’ expectations have changed through the use of digital channels and devices,” Mr Hackett said. “We believe this Australian-first smartwatch technology program will shake up the insurance industry and give us a significant competitive edge.”

He says the life insurance industry has assessed risk in the same way for a long time.

“Smartwatch technology offers new ways of assessing and pricing insurance risk, while also providing us with new opportunities to improve customer engagement.”

MLC will work with Big Cloud Analytics to bring the wearable device – the Intel Basis Peak fitness and sleep tracker – exclusively to customers in Australia.

It will be available to MLC Insurance or MLC Insurance Super policyholders.