UK: Piling on the pounds could add £££s to your premiums

• Norwich Union issues life insurance warning ahead of Obesity Awareness Week

As the UK’s obesity problem continues to soar, Norwich Union is warning of the financial impact of the growing epidemic.

Ahead of Obesity Awareness Week (11-17 March 2007), the UK’s largest insurer advises that piling on the pounds is likely to bulk up life insurance premiums, with a clinically obese person facing paying nearly twice as much for their cover as a person of "normal" weight.⁽¹⁾

For example, when assuring a sum of Ł200,000 for a 15 year term, a typical 35 year old, 5’10" non-smoking male weighing 12 stones can expect to pay significantly less than his heavier alter-egos (see table below). A non-smoking male of the same age and height weighing 18 stones can expect to add nearly 30% to their premium. And if the same hypothetical person allows their weight to creep up to 20 stones, their life insurance payments could increase by around 75%.

The same is true for women. A 35 year old, 5’5" non-smoking female weighing in at 15 stones faces a premium 25% higher than her nine-stone counterpart. The rise jumps to 70% when comparing the "same" woman at 17 stones.⁽²⁾

With Norwich Union these people can expect to pay the following premiums for a 15 year level term on an assured sum of Ł200,000:

NB. Premiums stated do not include any options such as critical illness cover. Further options can be added at an additional cost to the premium. The actual cost of a policy will depend on the level and period of cover chosen and the individual’s personal circumstances. A pay out would be made if the policyholder died during the policy term. The policy has no cash value at any time.

Additional premiums are imposed when a person has a BMI (Body Mass Index) of above 30⁽³⁾. The average BMI for a person of "normal" weight is between 18.5 and 25.

Tony Jupp, chief underwriter at Norwich Union, says: "Obesity dramatically increases the likelihood of a number of chronic medical conditions including high blood pressure, heart disease, and diabetes. It can also put a tremendous strain on weight bearing joints especially the hips and knees, leading to a number of mobility problems.

"In addition, many overweight people are extremely sensitive as to how they are perceived by others and these concerns can often lead to periods of anxiety and even depression. The cost of life insurance cover has to reflect these additional risks."

Obesity statistics:

• Obesity is responsible for more than 9,000 deaths in England every year.⁽⁴⁾
• The Health Select Committee has estimated that the costs of obesity is Ł3.3-Ł3.7 billion per year and of obesity plus overweight at Ł6.6-Ł7.4 Billion.⁽⁴⁾
• One in four children in England is currently obese.⁽⁵⁾
• Between 1995 and 2004 obesity among boys aged 11-15 rose from 14% to 24% and girls from 15% to 26%.⁽⁵⁾
• During the same period adult obesity rose from 13% to 24% for men and 16% to 24% for women.⁽⁵⁾

Norwich Union offers a range of life insurance products from as little as 17 pence per day. To find out more call 0800 404 6459 or visit www.norwichunion.com.

-ends-

Press office contacts:
Sarah Horner 01904 452828 Out of hours 07800 691569

Notes to editors:

⁽¹⁾ A person of normal weight is categorised as having a BMI of between 18.5 and 25.

⁽²⁾ Premiums quoted are based only on height and weight and do not take into account whether or not applicant may have any other medical problems attributable to obesity or otherwise.

⁽³⁾ Extra premiums are added routinely when a client’s BMI is 30 or above. The World Health Organisation classifies BMI into the following categories:

Underweight BMI <18.5
Normal BMI 18.5-24.9
Overweight BMI 25-29.9
Obesity 1 BMI 30-34.9
Obesity 2 BMI 35-39.9
Morbid obesity BMI 40>

⁽⁴⁾ Source: Department of Health

⁽⁵⁾ Health and Social Care Information Centre survey, April 2006.

About Norwich Union
Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.

Norwich Union is the UK’s largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.

Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.