According to Life Insurer Swiss Re premiums are due to rocket as the UK "piles on the pounds".
Obesity has risen hugely in the UK resulting in estimates that the an average 40 year old non-smoker will live six to eight years less. Meaning more death claim payouts earlier.
Swiss Re expect though that Insurers will not continue to hike the premiums just for the obese but spread the rising costs amongst all policyholders.
Our View
Whilst the above would seem logical, it seems to us that those who are slim and/or healthy should not subsidise those who are not. Insurance companies automatically rate people on date of birth, smoking status and gender so why can you just not have an additional underwriting point for height and weight.
In these days of high tech actuaries with access to superior data and computers the healthy should not cross-subsidise beacuse their neighbour chooses to over eat and take little or no exercise!
We do accept though that some people do have genetic issues with obesity rather than poor diet - even so - whey should they not pay the true rate for their risk of death?
It is just the same as the 18 year old "boy racer", he pays in excess of double, treble and quadruple for motor insurance compared to Mr & Mrs Average. Why should it be different for life cover risks?