As simple as A, B, C
Our renewal prices are clear and easy to understand
How do we work out our renewal prices?
It's simple. All we use is our unique A, B, C formula
A for Age
Like all insurers, premiums go up slightly every year with age. Because the older somebody gets, the more likely they are to claim
B for Base inflation
Treatment, drug and hospital costs rise every year. So, our prices consider how much these costs go up
C for Claims
We adjust premiums based on the claims a client has made1. Because members who look after their health - and improve their Vitality status - are less likely to claim2. And, we reward them for doing so
1Claims made under the Worldwide Travel Cover and Optical, Dental and Hearing Cover are not considered when calculating the Claims element of your ABC renewal price
2Vitality Health Claims Insights Report, 2023
Meet Helen. She's taken out our personal health plan.
In her first year of cover, she reaches Platinum Vitality status. She also makes a small claim on her plan for £200.
When we send Helen her renewal price, her age increase is 4% and her base rate increase is 9%. However, as she's reach Platinum Vitality status, we don't apply any increase for her claim.
So, her renewal price changes by: A (4%) + B (9%) + C (0%) = 13%*
Claims and engagement table
The table below is an example of claims-related increases through ABC Pricing. Each members' specific claims table will be communicated to them in their renewal letters, each year.
| 1 or more adult on the plan | No claims paid per year | Less than £300 paid per year | £300 - £1,200 paid per year | More than £1,200 paid per year |
|---|---|---|---|---|
| 2 or more adults on the plan | No claims paid per year | Less than £600 paid per year | £600 - £1,800 paid per year | More than £1,800 paid per year |
| Bronze | 0% | 7.5% | 17.5% | 35% |
| Silver | -2.5% | 5% | 15% | 30% |
| Gold | -5% | 2.5% | 12.5% | 25% |
| Platinum | -7.5% | 0% | 10% | 20% |
Key features of ABC pricing
When your clients look after their health, we think it's right to reward them
Simple to understand
Age and Base inflation of medical costs will be clear on your clients' renewal. We also show how claims affect the cost
Based on claim size
Small and mid-sixed claims have a smaller effect on renewal prices than on a large claim. We always take that into account
Rewards healthy habits
When your clients look after their health and improve their Vitality status, they can reduce their renewal increase - claim or no claim
