Philip Morris launched a life insurer that discounts smokers who switch or quit

Philip Morris International sells Marlboro and is pivoting to smoke-free products led by iQOS, its heated-tobacco device.

Pricing life insurance around switching — 25% off three months on iQOS, 50% off a year quit, 2.5% off e-cigs — pulls smokers toward PMI's smoke-free products.

PMI, whose core business is cigarettes, created wholly owned subsidiary Reviti to sell life insurance, using actuarial discounts to push smokers toward its own alternatives.

Discount tiers: switch to e-cigarettes 2.5%, iQOS for three months 25%, quit at least a year 50%. A 20-year-old nonsmoker pays about £5 ($6.47) a month for £150,000 of cover. PMI says discounts are set from scientific data on each product's risk-reduction potential.

Insurance pricing turns a health claim into a cash incentive the customer feels monthly — a stronger push than advertising ever gets.

The discount ladder is tilted toward PMI's own iQOS (25%) over generic e-cigarettes (2.5%), so the insurer doubles as a customer-acquisition engine.

It operationalises the endgame the CEO described: exiting cigarettes entirely, with lower excise taxes and better margins benefiting shareholders along the way.

An insurer you own is a pricing instrument for your strategy: PMI turned actuarial discounts into a subsidy for its own device, aligning a new business with the parent's pivot.

As of the April 2019 launch, Reviti sold life insurance in the UK with plans to expand into more markets overseas; the source records no later results. PMI continued to position iQOS as its biggest bet in the smoke-free transition.