VitalityHealth Healthy Business Discount
VitalityHealth has launched a new underwriting initiative for firms with between two and nine employees. It contacts each employee individually and asks two questions:
Have you or any dependant to be insured on the plan been diagnosed with and/or had any consultations, tests or treatment for any cancer, mental or heart conditions in the last two years, or any joint disorder or disease (including arthritis and back problems) in the last six months?
Have you or any dependant to be insured on the plan made a claim on your private medical insurance policy within the last two years (excluding any dental or travel claims)?
If the answer to both question is ‘No’ a 25% discount will be given. Even if the answer to the first question is ‘Yes’, firms still get a 10% discount if no PMI claims have been made.
Comment: Both Vitality companies (Health and Protect) have a strong reputation for product innovation and this latest measure adds to that. It recognises that good underwriting is not just about assessing a theoretical risk, it also takes account of what has actually happened in practice. So, a customer with health that is not A1 but who nevertheless has not claimed under their PMI policy recently may be a better risk than one who has.
VitalityHealth contracts already have a range of incentives and benefits built in to monitor and support improving lifestyle but Vitality recognises that cost remains an issue for many firms. A 10% or 25% discount is not unheard of in PMI terms (it was a staple of many PMI insurers’ marketing for years) but this one is based on experience rather than simply being a member of an affinity group.
The concept also has potential to be expanded too – although one risk is of over-complicating how it works. The fact that it applies down to firms with just two employees opens it up to even the smallest mom and pop businesses too.
Plus points: A simple tenth or quarter off premiums for being able to answer two simple questions; Based on past health/claims experience rather than a ‘money off’ gimmick; The concept could be extended further in future; Could open up PMI with wider health/wellness benefits to a larger audience .
Not so plus points: Employees that can’t answer ‘no’ will pay more; Could discourage people claiming when they really should (which can lead to more long term health problems); A form of no claims discount – which some argue is inappropriate in a health context.
Website: http://www.vitalityhealthco.uk.
Rating (max 10): Innovation: 9. Overall: 8. Gold
Tags: PMI; VitalityHealth