The tobacco company behind Marlboro cigarettes is starting a life insurance firm in the United Kingdom, and will offer discounts to people who quit smoking.
Philip Morris International, which is separate from Philip Morris USA and does not sell products in the U.S., announced Tuesday that it is launching the wholly owned subsidiary Reviti. The company will give smokers a bonus for quitting, or switching to a less carcinogenic product, like the vaping devices sold by Philip Morris International (PMI).
People who switch to e-cigarettes will receive an average 2.5 percent discount on premiums, while people who switch to PMI’s heated tobacco product iQOS for three months will receive a 25 percent discount. Customers who quit smoking for at least a year will receive a 50 percent discount.
{mosads}Reviti said it is determining the discounts based on scientific data related to the products and customer health risk.
CEO Andre Calantzopoulos told CNBC in an interview that the company wants to eventually stop selling cigarettes altogether.
“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 told CNBC.
“That’s why we all move in this direction, and the faster we move out of cigarettes the better for all of us.”
PMI’s plan, which may incentivize some to switch from cigarettes to vaping products, comes as companies in the U.S. move to limit their tobacco sales.
Walgreens earlier Monday raised the age for selling tobacco from 18 to 21 at their stores around the U.S., with Rite Aid following closely behind. CVS stopped selling tobacco products in 2014. And Senate Majority Leader Mitch McConnell (R-Ky.) said this month that he planned to introduce legislation to raise the purchasing age nationwide.
The Food and Drug Administration has also raised concerns about increased levels of e-cigarette use among young people despite decreases in traditional cigarette use.
–Updated April 23 at 5:22 p.m.