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Tuesday 29 November 2016

VitalityHealth evolves its approach to renewal pricing for individual healthcare policies

VitalityHealth has announced it will change its renewal pricing approach for individual healthcare policies within the guidance of a new Fair, Intuitive and Transparent (FIT) framework. 

While the industry-standard no claims discount (NCD) rating structure is opaque and can produce volatile premiums on renewal, the FIT framework will ensure a fairer, more intuitive and more transparent pricing approach for VitalityHealth members. 

Under this approach, renewal premiums will be based on an ‘ABC’ model which takes into account increasing Age; the Base medical inflation rate; and a new Claims and wellness engagement measure. By including wellness engagement in the determination of PMI renewal premiums, VitalityHealth is further entrenching its shared value insurance model, which rewards members for taking positive steps to improve their health. 

Neville Koopowitz, CEO of Vitality, said: “These changes are ahead of the market and go beyond the regulatory requirements around premium transparency to be enforced from April 2017.

“The no claims discount is a misnomer; it is more of a claims penalty. Sharp increases often follow even small claims, which negates the insurance cornerstone of collective risk sharing.

“Additionally, the current NCD structures can be confusing. For example, people may believe that a movement from 65% to 55% on the NCD scale equates to a 10% premium increase, when in reality this equates to a nearly 30% premium increase – and this excludes the effects of age and inflation. We believe that no customer should ever be surprised when they get their VitalityHealth renewal, which is why we have introduced this new framework.”


Notes to editors

Vitality – changing health and life insurance for good
Vitality is the insurance business that helps people understand how they can improve their own personal health. Vitality makes it cheaper and easier for its members to get healthy and gives them rewards to keep them motivated, through a range of discounts and incentives. 

Vitality Ambassadors Jessica Ennis-Hill, Jonny Wilkinson, Joe Root and Maro Itoje are role models who embody the values of Vitality. They are all using their passion for living a healthy lifestyle to motivate others to make positive changes. Taking small steps today can dramatically improve wellbeing over the long-term, regardless of your current state of health.

VitalityHealth is one of the UK’s leading private medical insurers and has pioneered the ‘shared-value’ insurance model. This is a unique approach to insurance that uses incentives to motivate better lifestyle choices among members, which translates into lower mortality and morbidity risk over time. The effect is positive for all stakeholders – members benefit through the financial and intrinsic value of rewards, as well as better health; employers benefit from healthier, more productive, and more engaged employees; and Vitality benefits from a healthier membership base. For more information visit

For further information, please contact:
Dan McMillan
Head of PR, Vitality
07824 604 926
[email protected]

Teamspirit Public Relations
020 7360 7877
[email protected]