View more on these topics

Obesity will not weigh on all premiums

Protection IFAs believe rapidly rising obesity in the UK will affect prices for obese people on all health insurance policies that involve underwriting but is unlikely to push up costs for everyone in the near future.

The comments follow reinsurer Swiss Re&#39s call for the life insurance industry to tackle the issues associated with increases in obesity by ensuring that the related risks are accurately assessed and rated and that consumers are char-ged an appropriate premium to reflect the risk they present.

Swiss Re&#39s comments follow the release of its report, Too Big To Ignore – The Imp-act of Obesity on Mortality Trends, which put obesity in the developed world at 10-20 per cent for men and 10-25 per cent for women. The firm says in the UK and the US, obesity has increased two to threefold in 20 years. It believes this will be a challenge for underwriters and actuaries.

Lifesearch senior technical adviser Kevin Carr says he believes reinsurers have star-ted tightening their definitions of obesity and those falling into the obese category will find loadings of 50-100 per cent on average added to their policy.

He says prices for all health insurance products which involve underwriting, including income protection and private medical insurance,are affected. Carr says: “I cannot see a time where it will automatically affect everyone&#39s premium although there are warnings on that.”

Recommended

Biggest house price gains outside southern England, says Halifax

The 10 counties with the biggest house price gains over the past 12 months are all outside southern England, according to Halifax&#39s regional index. Four are in Wales &#45 Gwynedd, Dyfed, West and Mid-Glamorgan &#45 while two &#45 Dumfries & Galloway and the Highlands &#45 are in Scotland. Three are in the North &#45 County […]

Journey to the core for Threadneedle

Threadneedle&#39s new retail chief David Gasparro says he wants the group to establish a bigger presence in the core UK equity sector following the launch of its limited issue and Mid 250 funds. Gasparro, who joined Threadneedle as head of retail in March, is seeking greater visibility for the group&#39s high alpha funds, which have […]

Product matters

The new Ucits III rules are likely to see a new raft of products which can take advantage of the extra investment opportunities. One such fund is the new target return fund from Credit Suisse. This is a fixed-interest fund which uses a “multi-strategy” approach to try and obtain Libor plus 2 per cent. These […]

Questions on strength and trust

The Abacus consultancy director David Ferguson questioned the stated cost of smoothing, which Pru chief executive Mark Wood admitted is around a 0.75 per cent annual management charge. Ferguson queried where the fund&#39s capital for new investment and offers such as extra allocations came from. He said, with returns under pressure, costs such as this […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com