Smart services in healthcare: A risk-benefit-analysis of pay-as-you-live services from customer perspective in Germany

The recent boom in wearable technologies generates enormous vital data sets, which are the ideal starting point for new service offers by Big Data Analytics. In a Pay-As-You-Live (PAYL) service, insured track activities, transfer current data on the lifestyles of users, who receive rewards from their insurance companies. The aim of this study is to investigate the readiness of customers to adopt PAYL services using wearable technology by comparing perceived privacy risks and perceived benefits. The research model is developed on a basis of a literature review and expert interviews. By conducting an online survey involving 353 participants, a structural equation modelling approach is used to test the research model. The results show that current privacy risk factors dominate the perceived value of an individual to use PAYL services. Insurance companies, service providers and manufacturers of wearables must therefore primarily work together and offer solutions for greater data security and data protection before focusing on gamification and functional congruence.

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