What has coffee got to do with insurance?
At a time of changing client needs and expectations, Vitality’s Director of Strategic Partnerships Andy Philo asks whether the intangible promise of a payout offered by traditional insurance is enough to convince people to buy protection
Here’s a pub quiz question for you: what product was first offered in the year 1583? Yes, you guessed it, life insurance. In June of that year, the earliest known life insurance policy was arranged in the of the City of London .
The world has changed beyond recognition in the over 400 years since. However, it’s still mostly the case that we sell protection – like most insurance products - based upon the intangible promise of a payout in the event of some future event, that may or may not happen.
While few would disagree with the importance of giving people the right financial safety net to provide vital protection should the worst happen, insurance today is no longer one-dimensional, merely a purchase you hope to never claim upon.
Consumers expect more
Increasingly, insurers are playing a more active role in people's day-to-day lives in one form or another, well before a full claim arises.
We’ve seen this especially with private medical insurance (PMI). The expanding range of everyday primary care benefits offered by PMI plans mean that more people are purchasing cover with the intention of using it, for more than just major operations and private hospital care – which are much less common for most people.
The same has been happening to some extent in the protection industry. We’ve all heard about so called ‘added-value benefits’ and the role they can play in helping to sell more protection, by offering something more immediate.
The reasons for this shift in how people interact with their insurance are relatively straightforward. Peace of mind alone isn’t always enough for clients that are looking for more tangible, ongoing value, especially at a time of inflation and economic uncertainty.
Insurers are rightly responding to these changing consumer attitudes and expectations, while also increasingly seeking to address wider health challenges we face as a society and that impact our industry.
Health is protection
As an industry, we’ve always been in the health business, it’s just the more traditional focus has been on compensating people financially when their health fails them or they suffer an accident.
Doing more to prevent illness is a growing area of interest, as we increasingly recognise the benefits to everyone involved – clients, insurers and society.
With almost one in five of the adult population in England predicted to be living with a major illness by 20402, there is much to be gained by focusing on preventative health in terms of actively managing claims in the longer term, supporting clients to feel healthier and playing our role in the sustainability of society.
Research tells us that this is increasingly what consumers want as well, with around a quarter of Gen Z and Millennials stating they want help staying healthy when considering protection products3.
What’s coffee got to do with insurance?
We know that people’s lifestyle choices play a major role when it comes to rates of ill-health, but that it’s not always easy for people to change their habits for the better.
This is where the Vitality Programme comes in, by incentivising clients – for example, with a free coffee - to take steps to improve their health, be more active and ultimately live in better health for longer.
Importantly, these are much more than just added benefits. Rewarding clients for adopting healthy habits can change lives.
As evidenced in our latest VitalityLife Claims and Shared Value Report, in 2024 alone Vitality members completed over 636,000 health reviews, logged 1.2 trillion steps and 6 million gym visits4.
In turn, we’ve found that members who engage with the Vitality Programme reduced their risk of death by 57%4 and improve their life expectancy by up to five years5 .
As a result, we can return more upfront, tangible value to clients from day one of their cover through the rewards and savings. In 2024, we returned £99m worth of value to members, including 1.1 million cinema tickets, 2.9 million handcrafted drinks from Caffé Nero and 1.5 million Waitrose & Partners healthy food baskets4.
Furthermore, this engagement can reduce the risk of cancellation, strengthen the adviser-client relationship and create additional opportunities to discuss referrals and cross-sell.
By offering these benefits alongside comprehensive protection cover such as Serious Illness Cover, Income Protection and Life Insurance, advisers can offer a much more compelling proposition – cover for the future, that benefits them today.
Undoubtably, the role of insurers and advisers is changing, but with that too comes opportunities to support and retain clients in ways that we couldn't before.
Yes, free coffees won't pay the bills when disaster strikes, but not only could that coffee help more people engage with their insurance policy regularly and place more value on it, but by being incentivised to be more active they could delay or stop that disaster in the first place.
*A version of this article was originally published in Cover Magazine
2 Health in 2040: projected patterns of illness in England | The Health Foundation
3 Consumer research carried out with Opinium on behalf of Vitality with 2,000 participants between 20th February – 27th February 2025
4 VitalityLife Claims and Shared Value Report 2025
5 Based on members who move from 0 to 21+ activity points a week throughout their lifetime, applied to standard UK mortality rates. Vitality study 2024
Better for your clients. Better for your business.
The Vitality Programme is the world's biggest health promotion programme linked to insurance. We use a combination of rewards and incentives to change your clients' behaviour for the better - and in the long run.
All your clients will get access to the Vitality Programme when they take out a plan with us, helping them to:
- Understand their health
- Get healthier
- Get rewarded
Recent articles
Five things you need to know about the Vitality Programme launch
Hot on the heels of the latest Vitality Programme launch, Justin Garbutt, Director of IFA Distribution, shares his key takeaways for advisers
Four simple steps to comprehensive mortgage protection advice
With homeowners continuing to feel the pinch against a challenging economic backdrop, Justin Garbutt, Director of IFA Distribution at Vitality, gives his tips to offering the most comprehensive mortgage advice possible
Dr Rishi Patel: ‘A joined-up approach to cancer screening is the answer’
Vitality’s Clinical Operations Director explains the critical role that cancer screening can play in early detection and improved treatment outcomes, and why joined-up care pathways are key
.png?rev=eaec4e31e03740b584885562b84b459f&h=581&w=600&la=en&hash=A8F2E4F7537010226B7DA4C9EDE9A8FA "Headshot Rishi Patel")
Vitality Programme Active Rewards and Status Overview
Use this handy sales aid with your clients to highlight the Vitality Programme's Active Reward and Status Reward partners, as well as the differences between Vitality Select and Vitality Plus.