The impact of increasing prevalence of obesity is too significant for the life insurance industry to ignore, said a Swiss Re study.
Obesity has links to cardiovascular disease, hypertension, diabetes and many types of cancer, making it a major public health concern. According to Swiss Re, recent estimates have estimated that between 10% and 20% of men and 10% and 25% of women in the developed world are obese.
In the developing world, an estimated 5% of the population are classed as obese, with the number expected to rise in the future, said the reinsurer.
The problem of obesity is particularly acute among children and teenagers, it said.
Swiss Re said the insurance industry must tackle issues associated with increases in obesity by ensuring that the related risks are accurately assessed and rated, and that consumers are charged an appropriate premium to reflect the risk they present.
This will present challenges for underwriters and actuaries in an increasingly competitive environment.
Global head of pricing at Swiss Re's Life & Health Business Group, Ronald Klein, said: “Unless the prevalence of obesity is brought under control, consumers will bear the ultimate cost. As consumers' Body Mass Index goes up, so too will their premiums.”
