Vitality is aiming to be a top three player in the income protection (IP) market following the relaunch of its protection offering, VitalityLife managing director Justin Taurog told Health & Protection.
Taurog added that continued integration between the life and health insurance offerings was “undoubtedly” something that it will continue to develop, following the introduction of private medical insurance (PMI) health benefits from Vitality’s sister business Vitality Health to support member rehabilitation.
The overhaul also includes the consolidation of the firm’s three IP products into one and launching higher IP claims payments for those active in the Vitality Programme.
Ahead of today’s relaunch, Taurog explained what the product launch and more integration with its PMI offerings will mean for Vitality’s IP business, how the firm’s ActiveLife product is aiming to grow the life cover market to younger consumers and why he welcomes this year’s rollout of the Consumer Duty.
When asked about its goals for the IP market, Taurog told Health & Protection that Vitality is aiming for the changes to help the firm move into the top three in the market.
“What we have seen with the pandemic is there has been a growth in income protection,” Taurog said.
“Furlough – where people have seen the importance of having an income where you can’t work – may have been a driver.
“The growth in multi-benefit and technology to facilitate multi-benefit, that’s all helped income protection. I think that is a market we see growing and we believe will grow.
“We were probably a mid-tier player, and this really steers an opportunity, building on the shared values of Vitality, boost your income and the flexibility of the product, to become a top tier, top three player in the income protection market,” he added.
Futher integration of life and PMI
Expanding on Vitality’s increased integration of its PMI benefits into its protection offering, Taurog explained this is an area the firm is “very much” looking to develop.
“This is something we have been focused on, it’s definitely something we will see as a future strategic thrust to keep on enhancing,” Taurog continued.
“Income protection is a natural fit. There are just so many areas where there is that continuum of cover so at Vitality in income protection we’re using a lot of the clinical expertise to get better customer outcomes.
“That connect between if you’re a health and life policy holder will undoubtedly be something that will continue to develop.”
Taurog acknowledged this integration was an area the group initially explored a decade ago but hinted that the timing might be better now.
“About 10 years ago I think it was perhaps too before its time that we integrated the cover – at that point in time we had serious illness cover and health. I think it was too early,” he said.
Working with advisers on Consumer Duty
Moving onto the upcoming rollout of the Consumer Duty, Taurog said the insurer was working hard with intermediaries to ensure they were being compliant with the new rules.
“It’s obviously positive – anything that puts the customer first is one of our core values,” Taurog said.
“Consumers have always been at the forefront of our environment. We’re doing a lot in terms of working with advisers; seminars and training around Consumer Duty.
“It’s just great to tie up the business process, working with advisers. It’s a positive opportunity to go back as providers to work with advisers to see are there any gaps in what we do?”
And Turning to last month’s launch of Vitality’s direct to consumer ActiveLife product which comes with an Apple Watch to monitor activity, Taurog highlighted the product is aimed at growing the life cover market to attract younger consumers and the Apple Watch is a key factor.
“With that product we have been looking at a younger, new to market audience and we have seen the power of the Apple Watch in terms of getting people engaged and creating a new category of insurance with ActiveLife,” Taurog continued.
“It’s something we see as very exciting if we can grow the market.
“In the cost of living crisis we have seen that the fact you can get a free coffee, you can get cinema tickets, you can get trainers, the fact you are getting something tangible with your life insurance is very unique and you are seeing massive customer value and engagement within that environment and obviously the usage of Apple Watch.
“Once people start to get engaged, they just love it, it becomes addictive,” he added.