CLAIMS AND

BENEFITS REPORT
SHARED VALUE IN ACTION
JUNE 2019
 WELCOME FROM VITALITYLIFE  5

A GLANCE AT 2018 6

VITALITYLIFE’S SHARED-VALUE INSURANCE MODEL 8

A SNAPSHOT OF VITALITYLIFE’S CLAIMS EXPERIENCE IN 2018  10

FINANCIAL PROTECTION AGAINST SERIOUS ILLNESS  12

A SNAPSHOT OF VITALITY’S BENEFITS AND REWARDS IN 2018  14

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 VITALITY’S
CORE PURPOSE
TO MAKE PEOPLE WELCOME FROM VITALITYLIFE
HEALTHIER, AND Vitality’s core purpose is to make people healthier and enhance and protect their lives.
We recognise the impact of illness, injury and other events on our members’ lives, and

ENHANCE AND we aim to be there for our members during times of real need.

PROTECT THEIR LIVES.

There are numerous examples where the comprehensive cover provided by our protection
products has made a real difference in the lives of our members and their families.

This cover is coupled with our unique Shared-Value Insurance Model that helps encourage
our members to lead a healthier lifestyle which helps them live longer and delays the onset
of illnesses. This approach creates additional economic value which we can share with our
members in the form of benefits and rewards.

This publication demonstrates how shared value operates in a life insurance context, and
highlights the comprehensive cover, benefits and rewards enjoyed by our members.

DEEPAK JOBANPUTRA
DEPUTY CHIEF EXECUTIVE OFFICER

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 VitalityLife’s positively different CLAIMS BENEFITS AND REWARDS
approach to life insurance ensures
that we protect members when they
suffer a life changing event and Over
reward them when they engage £40 million

A GLANCE AT
with their health. in annual savings through
99.8% upfront premium discounts
This ensures members experience of Life Cover with VitalityLife’s
value from their cover, regardless claims paid Optimisers
of whether they claim or not.

2018
Over
97.8% £81 million
of Income
given in
Protection Cover
Vitality benefits
claims paid
and rewards

91.2% Over
of Serious Illness 41 million
Cover claims paid healthy activities
tracked
Source:
Vitality internal
data, May 2019

6 7
 MAKING PEOPLE HEALTHIER
A POSITIVELY DIFFERENT APPROACH TO LIFE INSURANCE VITALITY ENGAGEMENT AND CLAIMS
Through our Healthy Living Programme, we are changing the value proposition We have seen that health and wellness management is correlated with
that members receive and expect from their life insurance plan both in the UK and a lower incidence of claims for VitalityLife members.

VITALITYLIFE’S SHARED-VALUE
globally through our network of leading international insurance partners. This simply
means that, unlike traditional insurers who only assist members if the worst should
happen, we are able to offer members a more holistic approach to insurance. Incidence of Life Cover claims for engaged relative
to unengaged members (2014 – 2018)

INSURANCE MODEL Over Our unique products provide members with comprehensive cover to ensure that 100% Unengaged
10 million Vitality their financial needs are met during a life-changing event, while also significantly
rewarding them for improving their health and wellness throughout the lifetime of
members
At VitalityLife, our focus
is to provide members members worldwide their plan. Due to the significant and increasing member engagement in our Healthy
Living Programme, we pay more in rewards for healthy behaviour each year. 80%
with innovative insurance
products that provide for
all their insurance needs,
while simultaneously VitalityLife’s Shared-Value Insurance 60%
making them healthier and MEMBERS
Model is a dynamic approach that
rewarding them for taking % redu
allows members to actively derive increas
active steps to manage value from their insurance product
their health and wellness. by controlling their underlying % reduc
40%
45% did not
risk through engagement with our
Healthy Living Programme. He
al
t
Members are provided with 33%

ts

hy
efi

be
20%

ben
incentives to reward them for their Engaged

hav
Model implemented in healthy behaviour which reduces
22%
members

iour
Member
20 different
17%
the insurance risk of that member to

countries VitalityLife. BEHAVIOUR

CHANGE
DYNAMIC
PRICING
RISK
SAVINGS 0%
Under 30 30 to 45 45 to 55 Over 60
We then channel the value of this
reduced risk into significant rewards
for members, and so create
a self-reinforcing cycle.
The above graph shows that over the past five years members
In su
re r s a v i n g s who engaged in the Vitality Healthy Living Programme had
Source: SOCIETY INSURER
Vitality internal data, May 2019 Lorem ipsum
a significantly lower incidence of Life Cover claims across all
age groups when compared to those who did not engage.

IN Over 360,000 Over 41 million Over 5.8 million

2018
Discounted healthy food Healthy activities have been Active Rewards have been
orders from Ocado tracked to earn Vitality points awarded to members

OVER £40 MILLION IN ANNUAL SAVINGS THROUGH UPFRONT PREMIUM DISCOUNTS WITH VITALITYLIFE’S OPTIMISERS

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 VITALITYLIFE HAS

A SNAPSHOT OF
IN 2018, CLAIM CLAIMANTS BY AGE
PAID CLAIMS
PAYMENTS WERE SPLIT This graph shows that 85% of Life Cover claims are for members aged 50 years and over.
IN EXCESS OF DECLINED CLAIMS

VITALITYLIFE’S
BETWEEN OUR BENEFITS In contrast, 76% of Serious Illness Cover claims and 90% of Income Protection claims
£230M AS FOLLOWS are for members under the age of 50, highlighting the importance of these covers for IN 2018
younger members.
SINCE OUR We are committed to paying

CLAIMS
as many claims as possible,
LAUNCH IN 2007 80% but there are some instances
when we cannot pay a claim

EXPERIENCE
– this is usually as a result of
60% non-disclosure, pre-existing
TOTAL CLAIMS Life Cover conditions (on Serious Illness

IN 2018
Cover for Children) or a claim
PAID IN 2018 40%

£56.3m £35,492,397
not meeting the relevant criteria.

20% LIFE COVER

0.2%

0%
<30 yrs 30 - 39 yrs 40 - 49 yrs 50 - 59 yrs 60+ yrs
1,417
CLAIMS PAID Life Cover Serious Illness Cover Income Protection Cover 99.8%
IN 2018 Serious
Illness Cover Paid Suicide within first 12 months

£20,393,940 CLAIMANTS BY GENDER

INCOME PROTECTION

99.8% 2.2%

Life Cover Serious Illness Cover Income Protection Cover

OF LIFE COVER
CLAIMS PAID
97.8%

Income
97.8% Protection Cover Paid Non-disclosure

OF INCOME £421,803
PROTECTION COVER SERIOUS ILLNESS COVER

CLAIMS PAID 40% 60% 50% 50% 42% 58%

2.5%

6.3%

The youngest member The youngest member The youngest adult The oldest member
91.2% claimed for under Serious claimed for under Life member who claimed claimed for under 91.2%

OF SERIOUS Illness Cover for Children Cover was aged 21. under Serious Illness Life Cover was
ILLNESS COVER was 1 month old. They passed away due Cover was aged 23. aged 89. They Paid Non-disclosure

The claim was due to a to injuries sustained in a They claimed due to passed away due Pre-existing conditions (Serious Illness
CLAIMS PAID cardiac abnormality. motor vehicle accident. a stroke. to cardiac arrest.
Cover for Children) / Did not meet criteria

Source: Vitality internal data, May 2019

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 FINANCIAL
Our Serious Illness Cover pays out based on the severity of a member’s TOP 10 CATEGORIES FOR SERIOUS ILLNESS COVER CLAIMS IN 2018
condition. This means our members could receive a payout at an early
stage of their illness, even if it’s not life threatening. Varying the amount

PROTECTION
we pay to reflect the severity of a condition allows us to cover more MALES
FEMALES
conditions than other insurers and means we can use broader definitions.
1

AGAINST
Cancer Cancer 1
2 Stroke & Nervous System Heart & Artery 2 This information shows the importance
SERIOUS ILLNESS COVER UNIQUE FEATURES OF OUR
3 Heart & Artery Stroke & Nervous System 3 of whole-body coverage as offered by

SERIOUS
CLAIMS BY SEVERITY IN 2018 SERIOUS ILLNESS COVER
4 Family Benefit Family Benefit 4 our Serious Illness Cover.
5 Respiratory Diseases Respiratory Diseases 5

ILLNESS
Severity G Covers over 170
1% Severity F
6 Permanent Disability Gastrointestinal Disease 6 Women had a greater incidence of
8% conditions which is more
than any other insurer cancer, while men had a three times
Severity A
Severity E
7 Connective Tissue Diseases Endocrine & Metabolic Diseases 7 higher relative incidence of heart related
31%
5% 8 Gastrointestinal Disease Eye 8 conditions.
Our Serious Illness WORLD FIRST: 9 Musculoskeletal Trauma Permanent Disability 9
Cover helps to ensure Dementia and
FrailCare Cover,
10 Eye Urogenital Tract & Kidney 10
1% 2%
that members and their at no extra upfront cost

families will have funds Protected Life and

available to facilitate Serious Illness Cover WE COVER MORE CONDITIONS THAN ANY OTHER INSURER IN THE MARKET
any lifestyle changes Severity B
3%
Severity D THE UNIQUE CONDITIONS WE HAVE PAID OUT ON SINCE OUR LAUNCH IN 2007
needed as a result of a
30%
Severity C Cancer Relapse Benefit
serious illness. 23% SEVERE CHRONIC RENAL LOSS OF USE OF
CHRONIC RENAL IMPAIRMENT ENCEPHALITIS IMPAIRMENT
A WHOLE HAND
SURGICAL RE-ATTACHMENT
OF AN AMPUTATED LIMB ADDISON'S DISEASE We cover 178 conditions on our
Comprehensive Serious Illness Cover, and
ADDISON'S DISEASE CARDIOVERSION FOR
PERSISTENT
PULMONARY EMBOLUS

INSERTION
PERMANENT PACEMAKER
43% of claims were for severities CONFUSIONAL STATE CARDIAC ARRHYTHMIA MODERATELY 145 conditions on our Primary Serious
Serious Illness Cover
SEVERE Illness Cover.

SURGICAL REPAIR OF AN ATRIAL

D-G which highlights the need for LE FORT III SURGERY FOR CARDIAC ARRHYTHMIA

TRAUMATIC BRAIN INJURY –

cover at early stages of a disease
Booster
RECONSTRUCTION CHRONIC INFLAMMATORY As a result of this, many of our members
WEGENER’S GRANULOMATOSIS

POLYMYOSITIS

ACROMEGALY
PANCREATITIS BOWEL DISEASE

CLINICAL SYMPTOMS
and for less severe conditions. have been able to claim for conditions that

OR VENTRICULAR
they might not have been able to claim

SEPTAL DEFECT
RHEUMATOID ARTHRITIS – SHUNT INSERTION FOR HYDROCEPHALUS
DIAGNOSIS RADICAL MASTOID HOME OXYGEN CENTRAL for if they had been insured with any other
ACUTE SURGERY provider.
SURGICAL DRAIN- RENAL THERAPY BLINDNESS

7%
HOME OXYGEN THERAPY
This illustrates how our severity-based
DIALYSIS BLINDNESS IN ONE EYE SCLEROSING CHOLANGITIS
OF SERIOUS ILLNESS COVER AGE OF EMPYEMA BACTERIAL MENINGITIS – ON DIAGNOSIS
claims payment allows us to cover a wider

CHRONIC INFLAMMATORY CRANIOTOMY ABNORMALITY OF THE HEART

CLAIMS PAID IN 2018 WERE
SURGICAL REPAIR OF A STRUCTURAL
PARKINSON'S DISEASE - ON SEVERE GASTROIN-
TESTINAL DISEASE range of conditions, as well as paying out
DIAGNOSIS REQUIRING earlier than typical Critical Illness products.
FOR CONDITIONS THAT ARE HEPATITIS NEPHRECTOMY
* Please note, the conditions reflected were unique to VitalityLife at the time of payment.
PEMPHIGUS VULGARIS HOSPITALISATION

UNIQUE TO VITALITY.

Source: Vitality internal data, May 2019 Each of the above conditions were unique to VitalityLife at the time the claim was made.

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 A SNAPSHOT OF VITALITY’S
BENEFITS AND REWARDS IN 2018
THE REWARDS, BENEFITS AND ENGAGEMENT
•

As part of our Shared-Value Insurance Model, our

Vitality Healthy Living Programme makes it easier Over Over Over Over Over
to lead a healthy lifestyle. It gives members the
knowledge and tools to improve their health,
41 million 3.9 million 3.9 million 1.8 million 360,000
healthy activities hand crafted coffees gym visits, by cinema tickets discounted healthy
and motivates them with tangible incentives to tracked awarded members with food orders
awarded
stimulate sustained behaviour change. discounted gym
memberships

THE HEALTHY LIVING PROGRAMME WORKS

ACCORDING TO THE STEPS BELOW:
Over Over Over Over Over

1 FIRST, it helps members better understand 300,000 160,000 140,000 50,000 40,000
their health through access to both online Vitality online Health parkruns mindfulness and pairs of discounted Apple Watch sold
and physical health assessments. Reviews completed completed meditation sessions running shoes
completed*
2 NEXT, it gives members access to a range of
benefits that help them improve their health,
such as discounted trainers and healthy food. OVER £81 MILLION GIVEN IN VITALITY BENEFITS AND REWARDS
Source: Vitality internal data, May 2019. Rewards, benefits and engagement in 2018 are based on VitalityLife and VitalityHealth members.

3 FINALLY, it rewards members for taking care

of their health through a broad range of
*Number based on September 2018 (launch of benefit) to December 2018.

reward partners.

PARTNERS INCLUDE

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 FIND OUT MORE
For more information please speak to your
adviser or visit our website vitality.co.uk/life

VitalityLife is a trading name of Vitality Corporate Services Limited. Registered number 05933141. Registered in England and Wales. Registered office at 3 More London Riverside, London, SE1 2AQ. Vitality Corporate Services Limited
is authorised and regulated by the Financial Conduct Authority.
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