The prevalence of chronic disabilities such as diabetes is a ma-
jor problem in both developed countries such as the United States
and developing countries such as India. Insurance firms are wary
of diabetics because the nature of the disease is such that the risk
represented by any one individual is almost impossible to deter-
mine. The actuarial data are of some help in pricing, but predic-
tions are still unreliable because the progress of this disease and its
containment depend on the compliance of an individual to a life-
style regimen over a long period.
What if insurers could develop an approach whereby the be-
havior and lifestyle of an individual ...