About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, September 17th, 1:27PM
rss
Latest Headlines

Insurers tackle obesity problem

New Zealand insurers say obesity can be an issue for underwriters – but they are already a step ahead of their Australian counterparts when it comes to dealing with it.

Monday, October 10th 2016, 6:00AM

Graeme Edwards

Australian insurer TAL has announced it has adjusted its BMI calculation loadings to “provide a more accurate reflection of risks”.

Previously it had accepted overweight and obese customers at standard rates.

Now, the loading will increase with the rise of a customer’s rating on TAL’s BMI tables.

Graeme Edwards, of AIA, said BMI was already one of the things that was considered by New Zealand insurers, as part of a wider mix of risk factors.

But he said it was not as straightforward as it might appear. “Do you draw a line based on a number? Most of the All Blacks if you applied that wouldn’t get standard rates. You have to look at the whole person.”

But issues caused by increasing obesity rates were a worry for insurers, he said, and something that would have to be confronted over time.

“That population does create a long tail for insurers. That’s why you’re seeing more move down the health and wellness path.”

Noami Ballantyne, of Partners, agreed that New Zealand had TAL’s approach was not new when compared to the New Zealand environment.

She said it was surprising that they had used different loadings, because the same reinsurers catered for both countries.

“If you don’t [add loadings for obesity], it spreads the cost of obesity-related claims to all customers. What TAL is going to do by loading for BMI is reduce the premiums for people who aren’t overweight.”

She said the insurer would hope it was more appealing to people in a healthy weight range, as a result.

Tags: health insurance Life insurance

« Kiwi company attracts $200 million global investmentFidelity Life boosts profit »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Asteron and Fidelity go head to head for award

nib enters ASX 100
nib health funds has been added to the ASX 100 index as part of the September 2019 quarterly rebalance of the S&P/ASX Indices.

AIA's shot at a TV ad
AIA New Zealand joins forces with Dame Valerie Adams to help Kiwis live healthier, longer, better lives.

Southern Cross recognised
Southern Cross Health Society has been recognised as one of Australasia’s top 10 ‘Most Innovative Companies’ for BeingWell, its corporate health and wellness programme.

News Bites
Latest Comments
  • Insurer response 'not good enough'
    “Last year didn't Adrian Orr supervise the purchase a controlling interest in Fidelity Life. And before he went off to the...”
    2 hours ago by Elephant1
  • Insurer response 'not good enough'
    “Full disclosure – I’m not an adviser and know nothing about the insurance industry. However, I am intrigued at @Ron Floods...”
    3 hours ago by Pragmatic
  • Anti-commission advocate appointed to FMA board
    “Seandnz, right on the money. Im gobsmacked that she should be recruited to the FMAS with her clearly biased views. Will there...”
    4 hours ago by Bikedude
  • Insurer response 'not good enough'
    “As expected, commission is the root of all evil, someone working on commission is conflicted, while someone on a salary with...”
    4 hours ago by lewiboy
  • Anti-commission advocate appointed to FMA board
    “So does that mean ALL commission based businesses should move to fee based ie real estate, car sales, if not then it is purely...”
    4 hours ago by perryb
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com