E-Cigarettes | Budget 2018 Sales Opportunities | Underwriting Criteria

The recent Budget 2018 increases on Smoking could be a timely opportunity to contact your client with respect to their possible migration to E-Cigarettes/Vaping. There are variations between all 6 Life Assurer's.

The following underwriting conditions currently apply with the 6 main Life Assurance Companies in Ireland;

Aviva Life & Pensions – A person who smokes e-cigarettes will be classed as a non-smoker provided they have not smoked any form of tobacco within the last 12 months

Friends First – Treat a user of e-cigarettes as a smoker

Irish Life – Treat a user of e-cigarettes as a smoker. In order to be classified as a non-smoker for any new plans, Irish Life require a person to be off cigarettes and nicotine related products for 12 months. Nicotine related products include e-cigarettes according to Irish Life

New Ireland Assurance – Treat a user of e-cigarettes as a non-smoker, provided they have not smoked normal cigarettes in 12 months

Royal London – Treat a user of e-cigarettes as a smoker for underwriting purposes

Zurich Life– A person must be a non-smoker for 12 months. If a person smokes e-cigarettes after these 12 months there will be a 50% loading

Why is there such a divergence in the approaches of Life Companies towards e-cigarettes? Irish Life Assurance Companies and policymakers are not alone in not settling on a position around e-cigarettes, or vaping as it also known.

The international experience for e-cigarettes has been conflicting with respect to their policing by Government agencies;  

·        Australia has banned their sales, allowing for certain loopholes around importation from abroad.

·        American authorities have treated them on a par with tobacco products, with heavy taxation and strict advertising.

·        Brazil has implemented a complete ban on their sale

·        Our closest neighbour in the United Kingdom have taken a different approach. Public Health England(PHE), a UK Government agency responsible for improving their nation’s health, released a report in August 2015 in which they state that the use of E-Cigarettes is 95% less harmful than tobacco products*. In January 2016, the UK Medicines and Healthcare Product Regulatory Authority(MHRA) granted a licence to British American Tobacco for its e-Voke device*, this allows e-Voke to be marketed and sold as a smoking cessation aid.

Irish Government authorities have yet to evolve their position as far as those in the UK and further afield, there has been no outright ban. The Department of Health does have concerns however, and is considering introducing legislation to regulate e-cigarettes. An EU Directive, the “Tobacco Products Directive” is also currently being introduced, in this there are a number of measures including;

·        Safety regulations on e-cigarette equipment and liquids

·        Strict rules on advertising e-cigarettes and liquids

·        Ingredient listings and warnings that nicotine is an addictive substance

·        E-liquid bottles at a maximum of 10 ml

·        E-liquids with a maximum nicotine content of 20 mg per ml

Now with Hiqa’s cautious backing, it looks as though Ireland will move closer towards recommending e-cigarettes to those who wish to quit smoking – pending further studies to prove their success.

As a Financial Broker it is important that both you and your staff stay abreast of these developments, they are valuable conversations to have with your client’s whom you know to be smoking or for those who have already moved to e-cigarettes as an alternative to smoking.