Vitality’s explanation of their guaranteed premiums:
Both our Wellness Optimiser and Vitality Optimiser have premiums that can change over time depending on customer’s engagement. Customers who do not engage will receive premium increases but also customers who do engage can receive premium reductions.
These premium changes are defined in our product literature and customers have full control over how their premiums will change each year. We have guaranteed customers the amount their premiums can change, depending on their Vitality Status. Customers control their Vitality Status by the level of their engagement in the Vitality Programme. As we have clearly defined premium changes that are contractual for customers, and within their control, their premiums are guaranteed.
This is significantly different to reviewable premiums where the insurer will change customer’s premiums depending on factors that are out of the customers control such as the insurer’s claims experience, medical trends and insurer’s costs. Additionally, reviewable premiums can change by unknown, uncapped and undefined amounts at each review.
This change was made in conjunction with iPipeline and after consultation with the networks. It makes iPipeline consistent with the other portals and their own categorisation of Wellness Optimiser.