Nick Read: "The power of rewards to incentivise behaviour change"

By Nick Read, CEO Vitality Programme

In an industry where traditional insurance has long been perceived as a grudge purchase, the challenge for us as insurers and advisers is clear: how do we create real, tangible value for our clients long before a claim arises?

The Vitality Programme was built to solve exactly this.

As the world’s largest behaviour change programme linked to insurance, it transforms a passive customer relationship into an active, ongoing engagement model – one that benefits members, improves adviser conversations and strengthens insurer performance.

Rewards, behavioural science and Shared Value

At Vitality’s core is behavioural economics, a scientific understanding of why people don’t always act in their long-term interest and how well designed rewards and incentives can nudge them toward healthier choices.

For insurers, this approach isn’t simply about offering perks to improve sentiment. It’s about shifting behaviour in ways that reduce long-term risk, deepen engagement and drive persistency – ultimately creating Shared Value across the entire ecosystem.

Solving the “grudge purchase” problem

Ask most people what they think of insurance and they’ll describe it as something they know they need, but hope they’ll never use. That leads to a perceived lack of everyday value – one of the biggest obstacles to purchase and long-term retention. By integrating rewards and healthy living incentives into the insurance experience, we bring tangible value into the present, where people feel it most.

Behavioural economics shows us that people heavily discount future gains – a phenomenon known as present bias. For many members, immediate, meaningful rewards become the catalyst for forming healthier habits that anchor them to their insurance plan in a positive way.

Crucially, this isn’t about gimmicks. It’s about overcoming the cognitive biases that often prevent people from acting on their best intentions. Whether it’s optimism bias (“it won’t happen to me”) or the struggle to picture one’s future self, behavioural economics provides the insight needed to close the intention–action gap – something advisers have historically wrestled with in protection conversations.

Habit building made rewarding

Healthy habits don’t form overnight, and most attempts fail because the behaviour change required feels too big or too far in the future. The Vitality Programme breaks this down into small, manageable increments, using frequent rewards to reinforce healthy behaviours and encourage consistency over time.

This is delivered through a range of levers, from vouchers and cashbacks to premium discounts and even lottery-style rewards. In some markets, including South Africa and Japan, members can also choose to pay rewards forward via charitable donations – an option that has proven highly popular.

This ongoing engagement matters. Members who interact regularly with the Vitality Programme are not only healthier – they cancel less, claim less and stay with their insurer longer. For advisers, that means stickier business and more predictable revenue. For insurers, it leads to lower claims costs, stronger persistency and the ability to reinvest savings into richer member benefits.

The science of habits

Research shows that around 40% of our daily actions are habitual. When those habits are unhealthy, they drive much of the chronic disease burden globally. But when people replace them with sustainable positive habits, the impact on health outcomes is significant.

Vitality’s own analysis shows that members who maintain moderate activity habits over several years significantly reduce risks associated with conditions like type‑2 diabetes and see improved long‑term mortality outcomes. The Vitality Habit Index further highlights that sustainable habits typically form within seven to 15 weeks – reinforcing the importance of consistent nudges and short‑term rewards.

A model aligned to the future of insurance

The Vitality Programme creates a powerful alignment of incentives across the ecosystem: members experience better health and tangible value, advisers build stronger, longer‑lasting relationships, and insurers benefit from improved risk outcomes and reduced claims costs.

Insurance is no longer just about protection – it’s about prevention. As healthcare costs rise and chronic illness becomes more prevalent, insurers that can meaningfully influence behaviour will define the next decade. The Vitality Programme provides a proven blueprint: using behavioural economics to drive engagement, personalise journeys and reward positive choices.

This is the essence of Shared Value – helping people live longer, healthier lives while strengthening long‑term business performance.