The short term effects of weight loss drugs are overwhelmingly positive.
But protection insurance underwriters are alive to the risks posed by unsustainable weight loss.
This is according to Carl Heard, national account manager at LV= (pictured furthest right), and Craig Paterson, chief underwriter at Royal London (pictured furthest left), who discussed the implications of these drugs for income protection insurance underwriting on the final day of Income Protection Action Week.
Jury’s still out
“The jury’s still out on some of the long term effects of these medications,” Paterson said.
“But short term, it is overwhelmingly positive – particularly for cardiovascular health, it could be transformational in this country and beyond.”
Cautious about dramatic weight loss
Paterson explained the mutual’s underwriters ask questions about prescribed medication.
“We expect customers to disclose it in response to that,” he continued.
He added that at this point the underwriters would be cautious of customers who have lost large amounts of weight in recent periods of time.
“And if that happens, they might add some of the weight back on,” he added.
“But if the weight loss has been sustained for 12 months, then we will treat that customer based on their height and weight.”
Lifestyle reviews
But there is also further hope through lifestyle reviews.
“Even if the customer is accepted with a rating when the plan starts, most companies like Royal London will offer a lifestyle review where they can come back once those 12 months have elapsed and we’ll review them again and potentially remove that loading,” Paterson added.
Big change
Carl Heard, national account manager at LV=, described the emergence of weight loss drugs as a big change, with 3.4 million people eligible for them through the NHS over the next 10 or 12 years.
“And that’s just the NHS, so that’s before we even start talking about all the private treatments,” he continued.
“You can go online and see adverts for all of these different companies that say, take out a weight loss drug.”
But Heard added the landscape is changing as well with a new drug in the US in trials offering a higher dosage.
“So for us as insurers, we are trying to get as knowledgeable as we can,” Heard continued.
Side effects
Consequently, Heard maintained insurers would want to know about side effects of the drugs and if a client is disclosing using them how it affects their BMI [body mass index].
“They’re losing weight and that’s the right thing to do but from an insurance point of view, we would want to understand why, where they have come from on that journey,” he continued.
“With any weight loss programme, the small print always said as part of a calorie controlled diet and exercise as well.
“Already with the weight loss drugs, people are seeing this bounce-back where the weight is coming back on.”
Asking more questions
And where it is affecting BMI, Heard said underwriters would need to ask more questions.
“How long have they been taking the medication for?” he continued. “What’s the journey been like on it so far? It’s just to understand is this a steady weight loss? Is there BMI coming down gradually and in the right way and in a way that’s going to be sustainable as well.
“Because if a client takes out a policy and very quickly bounces back to a high BMI, then that does cause us difficulties.”
