Healthy men could get cheaper insurance

At the Actuarial Profession’s Health and care conference, 12-14 May 2010, Celtic Manor, Newport, Wales, two actuaries will say that by taking account of risky behavior, costs could be tailored to reflect lifestyle choices.

Stuart Johnson, actuary at PartnerRe, said: “If changes are made to the underwriting process for the under-40s to properly capture lifestyle risks, this could lead to less cross-subsidisation in insurance rates and to better rates for those with healthy lifestyles at a younger age. The improved risk controls could also help insurers to manage their experience and to avoid future unwelcome surprises.”

Figures from the Office of National Statistics show that more than half of deaths among men aged 25-29 are caused by injury and poisoning, largely road traffic accidents, other accidents and suicide. The risk factors that can influence these events include drinking, drug-taking, and stress.

Maeve Fleming, actuary at PartnerRe, said: “The evidence is that drink, drugs and stress seriously impact mortality and morbidity in the under-40s, yet insurers don’t currently take this into account. Application form questions are generally targeted at key risks for older age groups such as cancer and heart disease. Insurers must start looking more closely at the lifestyle risk factors for the under-40s.”

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 Enquiries: Tel. Liz Bury on 020 7632 2181 / 07798 804 871 or email: elizabeth.bury@actuaries.org.uk

Notes to Editors

1. Members of the press are invited to attend this conference. Please contact Elizabeth Bury as above to arrange accreditation.
2. Actuaries provide commercial, financial and prudential advice on the management of a businesss assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.
3. Members of the Profession have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyds.
4. The Profession is governed jointly by the Faculty of Actuaries in Edinburgh and the Institute of Actuaries in London. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of the Profession in society.
5. The Profession is available to provide expert comment to the media on a range of actuarial- related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.