Connected insurance products such as vehicle telematics, health wearables, and smart home devices are being used to monitor customer behavior and adjust premiums covertly.

The claim that connected insurance products such as vehicle telematics, health wearables, and smart home devices are used to monitor customer behavior and adjust premiums covertly is partially supported by current practices in the insurance industry. Telematics in vehicles, for example, is widely used to track driving behavior, allowing insurers to offer personalized premiums based on actual driving habits rather than broad demographic factors. This is evident in programs like Progressive's "Snapshot," which rewards safe driving with lower rates source. Similarly, health wearables provide real-time health insights, enabling insurers to offer personalized policies based on actual health conditions source. Smart home devices also play a role in insurance by detecting risks like water leaks or fires early, potentially leading to lower premiums for well-maintained homes source. However, the notion of these technologies being used "covertly" to adjust premiums is not substantiated by the available evidence. While there are privacy concerns related to data collection by these devices, insurers typically require consent from policyholders to use such data for premium adjustments. The data collected is often used to improve product offerings and customer experience, rather than being used secretly to alter premiums source. Therefore, while connected devices are indeed used to monitor behavior and adjust premiums, the process is generally transparent and consent-based, rather than covert.