At first, life insurance for vapers would appear to be a good bet. Vaping would be better than smoking cigarettes, right?
Vaping started to become really popular in 2010. Vapers, who were mostly x-smokers, were desperate to kick the habit of smoking or were jumping on the bandwagon of “cool” and healthy. Either way, vapers have wholeheartedly embraced the new technology of e-cigarettes to live a better, healthier life.
Then an outbreak of lung injuries among e-cigarette users across much of the United States focused national attention on the potential dangers of vaping.
The exact cause of the respiratory illness has not yet been determined, and there is still uncertainty surrounding the specific health risks associated with vaping. E-cigarettes create a water vapor that users inhale, using cartridges that typically contain nicotine, flavorings or cannabis products along with chemicals.
While the federal government and some states have begun to take policy steps in response, insurance companies are right in step to respond to this news
Global reinsurers are stepping up their warnings to life insurer clients about the potential risks of vaping, putting pressure on underwriters to charge certain vapers higher rates than smokers, or even exclude them altogether.
U.S. authorities said last month that there had been 47 deaths this year from a lung illness tied to vaping. The health concerns about vaping have grown despite evidence showing e-cigarettes help smokers to quit and has led to bans in some countries including India and Brazil.
Reinsurers insure the insurers, and often have large research arms which help their clients by modeling risk. They give broad advice to insurers, rather than specific policy or pricing recommendations, but can potentially refuse to provide reinsurance or can raise premiums if their guidance is ignored.
Most insurers have long treated smokers and vapers the same, meaning they can pay close to double the premiums of non-smokers or non-vapers. But three major reinsurers have provided updated advice on vaping in the past three months, with new warnings, while others are considering their approach. Life insurance for vapers takes more thought these days.
(Source: Reuters)