According to an Analyst, Apple will Offer Health Insurance in 2024
One analyst predicts that Apple will start selling health insurance in 2024 in an effort to make the most of the health information the Apple Watch can provide.
According to CCS Insight, Apple will work with a significant insurer to take its first hesitant steps into the American health insurance market, using the health data it is already gathering to gain an advantage over rivals.
In addition to helping individuals manage their medications, Apple already gathers data from the Watch, including blood pressure, blood oxygen levels, ECG measurements, and body temperature. The Watch and iPhone can be used to monitor medical diseases like diabetes in conjunction with ancillary equipment.
Analysts predict that the company will gain a competitive edge in the insurance sector and be able to lower consumer costs thanks to its access to such comprehensive data.
Ben Wood, the principal analyst at CCS Insight, said, “They are in such a fantastic position to achieve this.” If they connect some of the dots, they can become a very competitive health insurance provider, which may have a significant impact on the organization of the healthcare industry in the U.S. They have access to a trove of personal health data owing to Apple Watch.
A Trojan Horse or an Apple Watch?
This makes it uncertain whether Apple intended for the Watch to eventually compete in the lucrative health insurance sector. Wood asserts that although Apple today sees the Watch as a means of enhancing its services businesses, the Watch was not first introduced with that objective in mind.
Tim Cook shifted the Apple Watch towards the health and fitness industry, and they hit a market that just resonated with consumers, according to Wood, from its beginnings as a fashion piece.
The speaker added, “I don’t think it was a Trojan Horse to get into it; I think it was natural progression.” They ponder if they should work in the healthcare sector, after taking a sudden look at the data they have.
Flourishing Services
Getting into the health insurance market would also help Apple’s already successful services division. According to CCS Insight, the value of services is already close to $20 billion per quarter, and this amount is anticipated to increase.
According to analysts, one-third of Apple’s revenue would come from software and services by 2030. Just around a quarter of the company’s current revenue comes from it.
