“These changes have enabled us to increase our straight through processing [STP] rates considerably and also reduced the amount of additional medical requirements being requested.”
It’s a partnership thing
Vitality’s shared value model sits well with the fact that the majority of chronic conditions are lifestyle related. Anything that nudges the individual down the route of self care must be a good thing, for their own wellbeing, longevity and their pocket in terms of potential premium reductions.
Take smoking/tobacco use for example. This is deemed to be a chronic condition, which can lead to several others.
To combat this, premiums for smokers are generally 1.5 times greater than that of a non-smoker, says Mr Lax, and this excludes additional ratings for other conditions that may be present.
“Vitality encourage their clients to stop smoking and have partnered with smoking cessation exert Allen Carr to provide professional assistance in this regard. Each policyholder is entitled to attend one Allen Carr programme worth up to £299 at no cost to them,” he adds.
“Once they’ve been tobacco free for 12 months they can apply to have their smoker rates reduced to non-smoker rates without having to reapply for a new policy. Terms will be subject to a negative cotinine test and a clear declaration of health being completed.”
Peace of mind for all workers
And what of cover for the self-employed and those with risky occupations?
To help address needs in this area with relevant and affordable cover, British Friendly differentiates the premium it charges on age rather than occupation.
The provider will also tailor cover to meet the customer need when their income stops due to incapacity, offering cover from day one, week one or week four for manual occupations such as builders.
Nick Telfer, product and marketing director at British Friendly, says: “Some insurers may only be prepared to offer cover for a longer deferred period - for example a minimum of four weeks or in some cases three months for some manual occupations.
“This may be ok where the person has a benevolent employer and access to statutory sick pay and continuing income. But the reality is that many manual workers are self-employed so their families are immediately exposed to a financial shock if they are unable to work due to sickness or injury. They need their income replaced sooner.”
Another potential issue for the self-employed and those on zero hours contracts is that income may be irregular or difficult to evidence.
