Apple Will Launch Health Insurance In 2024, Says Analyst

Analysts predict that Apple will start offering health insurance in 2024 to use Apple Watch health data.

CCS Insight believes that Apple will make its first foray into the US health insurance market by partnering with a major insurer to gain a competitive advantage over previously collected medical data.

Apple already collects data like blood pressure, blood oxygen levels, ECG readings and body temperature to help people manage their medications. With connected devices, the watch and iPhone can be used to monitor conditions such as diabetes.

Analysts believe that access to such extensive information will reduce the company's advantage in the insurance market and reduce costs for consumers.

"They're well positioned to do that," said Ben Wood, principal analyst at CCS Insight. “They have a lot of personal health information through the Apple Watch. If you connect a few dots, they can become very competitive players in the health insurance industry, and this can have a significant impact on the structure of the health care market. in the U.S."

Apple Watch or a Trojan horse?

Such a move raises questions about whether Apple launched the watch with a long-term goal of tapping into the lucrative health insurance market. Wood doesn't think the watch was launched for that purpose, but Apple now sees it as a way to improve its services business.

Wood says the Apple Watch started life as a fashion accessory, but Tim Cook has moved the watch into a more consumer-friendly space, turning it into a health and fitness space. consumers"

“I don't think it's a Trojan horse, I think it's a natural evolution. Suddenly, they look at the data they have and say: let's get into the health sector.

“Health is a deep societal issue that Apple wants to address,” Wood added.

Fast growing service business

The move into health insurance would be a boost to Apple's already growing services business. Services generate around $20 billion per quarter, and CCS Insight believes that number will grow.

Analysts predict that by 2030, a third of Apple's revenue will come from software and services. Currently, it represents only about a quarter of all operations.

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