UK mutual and protection insurer The Exeter has entered the life insurance market with a plan for people with type 2 diabetes or a high body mass index (BMI).
Managed Life from The Exeter offers reduced premiums for policyholders who positively manage their conditions by lowering their HbA1c level (for type 2 diabetics) or weight (for high BMI), with savings of up to 35% of the initial premium.
Evidence of the customer’s HbA1c reading or weight is collected annually at policy anniversary and premium reductions are applied for policyholders who achieve their target.
Equally, if their condition has worsened, premiums could be increased, again by an amount confirmed at application.
Andy Chapman, chief executive of The Exeter said Managed Life is a bespoke life insurance plan “for an underserved sector”.
Chapman commented: “For too long, insurers have focused on healthy lives and ignored the increasing number of people who suffer from long term health conditions.”
He added: “We live in an age where products and services are increasingly dynamic and responsive to us as individuals, yet life insurance has remained static. Managed Life is about to break this mould.”
Commenting on the launch, Andrew Wilkinson, Director of Moneysworth said:
“Health conditions such as type 2 diabetes are very common, but the protection industry has done little to innovate with such clients in mind.”
“As a specialist adviser, we know there is huge potential in this market, but until now insurers have done little to take advantage. Managed Life by The Exeter is a very positive development, giving people the aspiration to improve their health and the reward for doing so.”
“Perhaps most importantly, clients should be able to understand clearly what goal they need to achieve to reduce their premiums.”
Emma Thomson, Life Office Relationship Director at LifeSearch, added: “This is a fantastic new product from the Exeter that will make a real difference to people who may currently struggle to get cover. Giving clients the opportunity to reduce their premiums by rewarding healthier behaviours is also hugely positive. It’s an initiative that will help grow our market and help get more consumers the protection they need.”
Partially underwritten quotes for Managed Life will be available from The Exeter and IRESS, currently the only adviser quote portal to capture height and weight.