LONDON/NEW YORK:
Global reinsurers are stepping up their warnings to life insurer clients about the potential risks of vaping, putting pressure on underwriters to charge certain vapers higher rates than smokers, or even exclude them altogether.SCOR recommends life insurers treat vaping like smoking, and exclude individuals who use vaping products considered by U.S. authorities likely to cause lung issues – namely, those containing THC (tetrahydrocannabinol).
Swiss Re also treats vapers like smokers. In addition, Global Chief Medical Officer John Schoonbee said the reinsurer has told insurers in recent months to make extra checks on whether vapers are using cannabis products.
AMERICAN WARNING
The U.S. Centers for Disease Control and Prevention has urged people not to use e-cigarettes containing THC, some of which contain vitamin E acetate, a “chemical of concern” among people with the vaping-associated lung injury EVALI.
Stephen Cooley, Chief Medical Underwriter at PartnerRe Life & Health said more research on the long-term effects of vaping was needed and that life insurance rates for vapers would be the same as smoker rates “at best”.
Munich Re and Gen Re said they were monitoring the recent developments in EVALI.
Proponents of vaping as a tool to stop smoking say the insurers’ and reinsurers’ approach is harsh.
“Getting insurance is really expensive for people who have taken steps to quit tobacco,” said Simon Manthorpe, CEO of British vaping product manufacturer Vapemate.
Vaping in Britain and elsewhere in Europe is more heavily regulated than in the United States. Vapes containing THC or cannabis oil of any kind are banned in Britain, and Public Health England says vaping is at least 95% safer than smoking. ‘
VAPING SWITCH
Twelve of 13 life insurers contacted by Reuters in Europe, South Africa and the United States said they already treated vaping like smoking.
Most have taken this stance for years, but a handful have recently made the switch to treating vapers like smokers: U.S. insurer Prudential Financial (PRU.N) made the change in October, while the Irish subsidiaries of Aviva and Zurich have switched in the past year.
Zurich in Ireland said its new approach followed consultation with reinsurers.
Explaining their caution on vaping, Britain’s Aviva and South Africa’s Discovery said there was a lack of objective evidence of the long-term effects. Justin Harper, head of protection marketing at British insurer LV=, highlighted recent evidence indicating that vaping damages the lungs.
Harper said a 20-year policy for a 35-year old offering 100,000 pounds of life cover and 100,000 pounds of critical illness cover would cost 11.89 pounds a month for a non-smoker/non-vaper, and 20.56 pounds for a smoker/vaper.
The life insurers told Reuters they were not treating young vapers differently, though Zurich said it was monitoring statistics on increased deaths or illness among this age group.
One exception among the life insurers in its vaping view is Reviti, a new insurer owned by cigarette and e-cigarette firm Philip Morris (PM.N). It is offering a discount of up to 15% for vapers in Britain. Customers who quit tobacco and nicotine altogether get a discount of up to 50%.