Yes, this is a great way to stimulate a net positive outcome for everyone! A win for users because they walk more and live longer and healthier lives. A win for health insurances, because they reduce cases and other claims, with reduced health risks of their clients.

Health insurances in most countries operate on a legacy software stack and slow decision making. At the same time I believe that mid term, insurances will transform. The best incentive for a healthy lifestyle is Bitcoin (much better than any points program, or reduced insurance rates).