"With seven in 10 PMI policy holders having no idea how premiums are calculated under the no claims discount structure, it’s no wonder many people find the renewal process complex"
Just 13% found it easy to explain how their insurance premium is worked out.
VitalityHealth has therefore changed its approach to ensure renewal premiums are more transparent for members. The new renewal pricing mechanism calculates renewal premiums based on an ‘ABC’ model which takes into account increasing Age; the Base medical inflation rate; and a new Claims and wellness engagement measure.
The combined claims and engagement measure means any increase associated with members claiming can be reduced by efforts to manage and improve their health.
Neville Koopowitz, CEO of VitalityHealth, said: “With seven in 10 PMI policy holders having no idea how premiums are calculated under the no claims discount structure, it’s no wonder many people find the renewal process complex and opaque. We believe that no member should ever be surprised when they get their VitalityHealth renewal, which is why we have introduced the ABC model, a groundbreaking approach that sees the effects of age, medical inflation and wellness engagement combined to deliver a fairer, more intuitive and transparent pricing structure.
"Furthermore, not only do our members now know how to calculate the changes to their premium at each annual renewal date but, by engaging with their health and increasing their Vitality status, they can more actively control their premium through an alternative method than simply not claiming.”
