Smokers should be charged higher fees for health insurance under a trial that could pave the way for overweight people to also be charged more, the CEO of one of Australia's largest insurers says.

Just weeks after the Turnbull Government announced that one million Australians would next year take part in an "opt out" e-health trial that would allow their medical records to be shared with third party companies, the head of NIB Mark Fitzgibbon said there was potential for insurers to get involved.

He said while higher premiums for smokers should come first, people could be rewarded for healthy behaviours such as achieving 10,000 steps a day on activity trackers.

"It's not too far away where we will have little nano capsules in our blood stream providing us with all our vital diagnostics, warning us about our blood sugar insulin levels at any given time, measuring our calorie intake… and measuring how many calories we've expended," he said.