Vapers under attack by life insurance companies after THC deaths blamed on nicotine

Vapers under attack by life insurance companies after THC deaths blamed on nicotine

December 3, 2019

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, according to a Reuters post. 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, according to the post. 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.

The new warnings focus on young vapers and the vaping of liquids containing marijuana ingredient THC, which is legal and prevalent in some U.S. states and has been linked to lung illnesses in the country, according to the post.

The shift in the reinsurance and insurance sector represents a further blow to the vaping industry, which markets its products as healthier alternatives to smoking.

Hannover RE (HNRGn.DE), which already advised life insurers to treat vapers like smokers, has asked them to be particularly cautious about insuring people aged under 25 following the “epidemic” of lung injuries in the United States, said Nico van Zyl, the reinsurer’s U.S. medical director.

The question of whether to offer coverage to this higher risk group should be a consideration for life insurers, he said.

French reinsurer SCOR (SCOR.PA) said in a paper on Oct. 24 that e-cigarettes contain nicotine which may have toxic effects, including on brain development in teenagers and young adults, according to the post.

SCOR recommends life insurers treat vaping like smoking, and exclude individuals who use vaping products considered by U.S. authorities likely to cause lung issues – namely, those containing THC (tetrahydrocannabinol).

Swiss Re (SRENH.S) also treats vapers like smokers. In addition, Global Chief Medical Officer John Schoonbee said the reinsurer has told insurers in recent months to make extra checks on whether vapers are using cannabis products.

Category: Breaking News

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