The link between lifestyle habits and claim experiences

Other studies echoes this trend for example an extensive health and nutrition study that was conducted during 2012 by the Human Science Research Council and Medical Research Council and they determined that almost 80 percent of South African woman had a waist circumference of more than 80 centimetres. This study also found that South Africans were developing diseases from a younger age with diabetes, high blood pressure and cholesterol starting to peak from as early as 25 years, as a possible result of being overweight or obese.

The World Health Organisation defines overweight people as having a body mass index (BMI) of between 25 and 30, and obese people of 31 or more. Waist circumference measurements in men are defined as between 94 and 101.9 centimeters for overweight and more than 102 centimeters for obese. In women these measurements were 80 to 87.9 centimeters for overweight and more than 88 centimeters for obese. BMI utilises a formula that takes an individual’s height and weight into account.

Stephen van Niekerk, Head of Momentum Myriad states that there is a strong connection between BMI and life expectancy and therefore insurance companies often charge an extra premium for clients with a BMI level that is above a certain limit”.

 

Generally, BMI is perceived as the most appropriate measure to determine if an individual is at a healthy weight. The application of BMI is popular since it is simple, quick, objective and applies to adult men and women as well as children. Even though BMI is not a preventative measure of illness, it does provide guidelines which could ensure a balanced lifestyle. Furthermore, one does not have to be of an exact weight or measurement to be considered 'normal’. There is a range within each classification that allows for different body types and shapes.

Based on this, Stephen notes that during 2002 they launched Momentum Interactive along-side Myriad, their long-term insurance product, as an innovative approach to underwriting that rewards clients if they follow a healthy lifestyle based on factors such as BMI, cholesterol and blood pressure. He states that "the rewards include guaranteed discounts for life. In order to secure these lifelong discounts, we require our policyholders to complete a three yearly reassessment questionnaire whereby they provide us with additional information relating to their health and lifestyle. This information is utilised to calculate a premium discount, based on their unique circumstances.

 

Additionally, as more health-conscious clients join Momentum Myriad, the risk pool becomes healthier. As a result, to date a total of R900 million in Momentum Interactive discounts have been awarded to our clients”.

Stephen concludes by saying that "although BMI is not an exact science, our past experience has shown that it does influence our clients’ claims experiences significantly. For us it is not about life insurance; it is rather about insuring our clients’ financial wellness”.