Philip Morris starts life insurance firm that offers discounts to smokers who quit

Philip Morris International, the tobacco company that sells Marlboro cigarettes, is getting into the life insurance business. Called Reviti, the wholly owned subsidiary will initially sell life insurance in the U.K. with plans to expand into more markets overseas.

Reviti plans to launch a range of insurance policies that incentivize better lifestyle choices, such as improving one’s diet, cutting down on alcohol or getting fit. Every customer will also be offered the chance to work through a program via the Reviti life app, which provides them with 120 activities and programs designed to support lifestyle changes.

Smokers will receive discounts if they stop, quit or switch to a possibly less carcinogenic product, like Philip Morris’ vaping devices. On average, people who switch to e-cigarettes will receive a 2.5% discount on premiums, people who switch to Philip Morris’ heated tobacco product iQOS for three months will receive a 25% discount, and people who quit smoking for at least a year will receive a 50% discount, the company said.

PMI said it determines how big of a discount to give people for using alternative products based on the scientific data along with the potential of a product to reduce a person’s risk. PMI sells a number of cigarette alternatives, though it’s placing a much bigger bet on iQOS, a device that heats tobacco rather than burning it.

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