From Buzzword to Business Case: Wellness in U.S. insurance

For some time, wellness has created industry buzz among U.S. life and health insurers; however, it has yet to become a true strategic engine.

A 2025 RGA survey of 44 U.S. insurers highlights a market caught between ambition and execution: Wellness is widely discussed and partially adopted but rarely measured in ways that prove its real impact.

Wellness is everywhere – and nowhere

The survey reveals that 52% of respondents have wellness offerings in place or in development, yet 46% do not plan to implement a wellness program, with many citing cost, resource constraints, and uncertain return on investment (ROI) as primary barriers. Even for those investing in wellness, it is typically positioned as a supporting initiative or a pilot program rather than a core strategic pillar.

Only 13% of respondents consider wellness a core strategic initiative, while 40% frame it as a supporting effort, and 33% are still experimenting or in pilot mode. In other words, wellness is on the roadmap but not driving the strategy.

What insurers say they want vs. what they measure

Insurers are clear about what they want from wellness. Their top goals include:

• Improving customer wellbeing and satisfaction
• Strengthening customer engagement
• Supporting better physical and mental health outcomes

But when it comes to measurement, a disconnect emerges:

• 58% of respondents track engagement – the most widely used KPI.
• 50% measure policy persistence or retention.
• 25% track claims reduction.
• Only 8% monitor health improvements, and just 17% measure customer satisfaction – despite both being noted as top goals.

Insurers talk about wellbeing and satisfaction but mostly measure clicks, logins, and activity, making it difficult to build a compelling business case for wellness or to prove long-term value.

Heavy use of platforms; light use of data

Technology adoption among respondents is not the problem:

• 83% rely on third-party wellness platforms
• 58% use mobile apps
• 50% use web portals
• 42% integrate wearable devices

However, data acquired through wellness programs remain underused by respondents:

• Third-party platforms are the most common data source, used by 45%.
• Wearables, self-reported health assessments, and claims data each are used by just 18%.
• Remarkably, 36% do not use any data sources to inform their wellness offerings.

This pattern reinforces a key theme of the survey: Wellness is often treated as an add-on feature rather than a data-driven strategic lever for differentiation, risk management, and customer value.

The opportunity: Turn wellness into a true strategic asset

The survey makes one thing clear: U.S. insurers risk missing the wellness opportunity. Budget and resource constraints, difficulty demonstrating ROI, and ongoing customer engagement challenges limit many organizations. But they also signal where the upside lies.

Insurers that align their goals and KPIs, use richer data, and leverage partnerships (including reinsurers and specialized vendors) are better positioned to:

• Gather evidence of how wellness improves health outcomes, engagement, and claims experience,
• Strengthen customer loyalty by delivering meaningful, multidimensional support for physical, mental, and financial wellbeing, and
• Move from basic perks and pilots to strategic wellness propositions that differentiate their offerings in a crowded market

Wellness within U.S. insurance is at an inflection point. The next competitive edge will not come from simply offering more programs but from proving with the right data and metrics which initiatives truly improve lives and deliver measurable value.

While the survey produced a wealth of information, this article focuses on only a few of the intriguing highlights. Explore the full report for a more comprehensive look at the results.