In a surprising "dog bites man" story, a tobacco company is incentivising customers to quit smoking.
Cigarette manufacturer Philip Morris is offering life insurance to its customers, with reduced premiums available for those who successfully kick the habit.
This represents the intersection of two different strategies that both start-ups and incumbent insurers have been pursuing:
1) Establishing affinity partnerships to make products available to the relevant audience (i.e. a smoker-friendly life policy)
2) Offering reduced premiums to customers who change their behaviour to reduce risk
This initiative represents one of the more novel attempts to combine these two approaches, we just didn't expect it to come from a tobacco company.
Tobacco giant Philip Morris has launched a life insurance business, Reviti, that will offer discounted plans to former smokers. The company will initially sell its services to customers in the UK, with plans to roll out in other global markets in time. People who have kicked their smoking habit in favour of e-cigarettes or a heated tobacco device will be rewarded with improved rates (clocking in at an average of 2.5% off premiums), as part of the Marlboro owner's ongoing efforts to become a "smoke-free" business. People who switch to Philip Morris’ heated tobacco product Iqos for three months will receive a 25% discount, and those who quit smoking for at least a year will receive a 50% discount.