Tobacco Firm Owned Life Insurance Firm To Offer Rebate To Smokers Who Quit

A wholly owned subsidiary Reviti will be launched by Philip Morris International and the new company would offer smokers bonus for quitting smoking or switching to a product taht is less carcinogenic such as the vaping devices that are offered by Philip Morris International (PMI), the company said.

PMI as a company is different from Philip Morris USA and the former is not engage din business of selling its products in the U.S.

Reviti, an insurance firm, would offer a rebate of an average 2.5 percent discount on premiums for those smokers who switch to e-cigarettes while a 25 percent discount would be offered to those people who switch to PMI’s heated tobacco product iQOS for a period of three months.

The basis of the determination of the rates of discounts is based on the scientific data that it had collected from surveys related to the aforesaid products and those related to customer health risk, Reviti said.

The ultimate aim of the company is to ultimately to completely bring an end to its selling cigarettes, said the CEO of the company Andre Calantzopoulos in an interview to a television channel.

“Obviously that makes sense for public health and the people who smoke themselves, but it also makes sense for our shareholders because financially, as these products are not cigarettes, they benefit from lower excise taxes and better margins, so it’s a win-win for everybody,” he said in the interview.

“That’s why we all move in this direction, and the faster we move out of cigarettes the better for all of us,” he added.

There is a rising trend among cigarette making companies in the US to bring down and put a limit on their sale of tobacco and this move by the PMI is being viewed to be in line with that trend. Some analysts are confident that this new strategy by the company could act as an incentive for some smokers to quickly switch from smoking cigarettes to using vaping products.

At all of their stores in the United States, the allowable age of selling tobaccos to consumers was raised from 18 to 21 years by Walgreens, the company announced  earlier on Monday. That move was closely followed by a similar move by with Rite Aid. Tobacco product sale had been stopped by CVS in 2014.

He planned to introduce legislation to raise the purchasing age nationwide, said Senate Majority Leader Mitch McConnell (R-Ky.) said this month.

Concerns over the increased levels of usage of e-cigarettes among young people, even as there has been a decrease in the sale of conventional cigarettes, have been earlier raised by the US Food and Drug Administration.

(Adapted from TheHill.com)

Advertisements


Categories: Creativity, Economy & Finance, Regulations & Legal, Strategy, Sustainability, Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: