Fashion industry's size obsession now translating into differing cover premiums
Following the recent furore surrounding body mass index (BMI) in the fashion industry and the obsession with obtaining an American size zero (UK size 4), questions are rising as to whether insurance companies should hike up premiums on people with particularly low BMIs.
According to Kevin Carr, head of strategic relations at LifeSearch: "20-25 is considered normal, therefore, in insurance terms, anything outside this is potentially non-standard."
He added that anyone with a BMI above 27-28 could have to pay over 50% on the premium and potentially anything below 17-18 could also be the same.
Mick James, marketing manager at Standard Life, said it did not apply any mandatory loadings for low BMIs, but said "we do flag low BMIs, typically under 16 for the attention of an underwriter".
However, James said the firm erred on the side of caution because, "while very low BMIs may indicate that the customer potentially has a higher mortality or morbidity risk, this may not always be the case and we are looking to provide an appropriate loading, or perhaps no loading at all, for these customers." He added that it is not necessarily fair to automatically rate someone who is very slight.
The World Health Organization defines obesity in people with a BMI of over 30. For people who are underweight, the relative risk of death begins to increase at a BMI of 20 and below, according to Swiss Re.
However, at Swiss Re, ratings for underweight kick in slightly below this, with applicants presenting BMIs of between 18 and 30 classed by Swiss Re as standard for the purposes of BMI.
However, BMI is not used on its own as an indicator as to whether the applicant should be rated because some people may be below average weight and healthy while others may be underweight due to illness.
Jerry Brown, Swiss Re's head of life underwriting and claims in the UK, commented: "At young to middle ages, underweight is not a large-scale concern. Overall, the number of underweight applicants is relatively low in comparison to applicants who are overweight or obese. If we are looking at a healthy, young individual who has significantly below average weight but no apparent underlying disease, it is likely that a standard rating will be applied."
It is considered that the higher the BMI, the greater the risk of developing additional health problems, but recent press speculation suggests that there are increased risks on people who appear to be just skin and bones.
