Underwriting: Firm cracks down on inaccurate height and weight submissions
Scottish Provident is tightening up its underwriting procedures in a bid to increase the accuracy of height and weight information that applicants must provide on application forms.
The Glasgow-based provider plans to ask applicants when they last weighed themselves and encourage them to measure their height and weight to ensure the information they give is as precise as possible.
In the year since providers have started to release declined claims data, greater emphasis has been placed on the importance of accuracy on application forms. In the case of Scottish Provident, 14% of critical illness claims were declined in 2004, 52% of which were for non-disclosure of material facts.
The move comes after the family of a deceased policyholder, Rob Ellinger, took their story to the BBC's Watchdog after their term assurance claim was declined.
The life office said it would not pay out on the policy since Ellinger had "understated" his weight and concealed a history of high blood pressure. The family referred the case to the Financial Ombudsman Service, which eventually ruled in their favour.
The insurer clearly hopes that by coercing prospective policyholders into giving accurate information at the outset, disputes such as this can be avoided and declinature rates will fall.
Sue Wilkinson, head of life and health propositions at Scottish Provident, said: "If an obese person loses just 10% of their weight, they will reduce the risk of developing diabetes and certain cancers by half. Is it any wonder insurers want accurate height and weight measurements? Guessing doesn't cut it."
This is the first move by a major life insurer to tackle the obesity epidemic and the medical and financial fallout associated with being morbidly overweight.
In November 2005 three Suffolk NHS trusts announced that obese patients would be refused hip and knee operations due to budget constraints. A subsequent poll by the British Medical Association magazine found that 40% of doctors agreed with the decision.
Obesity charities denied that Scottish Provident is contributing to a tide of anti-obesity.
Nilani Sritharan, research nutritionist at Weight Concern, said: "All people, but especially those who are overweight, tend to underestimate their weight and overestimate their height.
"We therefore recognise and accept the need for insurers to seek more accurate information on height and weight so they can fully assess the health risks facing an individual."
