Insurance in Obesity

Overweight or obesity in most modern countries have been showing a dramatic rise in numbers. It has became a major public health concern as obesity related ilness are becoming the second most preventable cause of premature death after tobacco related ilness. Blame has now been put at the door of the food industry.

In recent cases, numbers of international food manufacturers and fast food chains have become the main target of lawsuits seeking to hold them responsible for their alleged detrimental effects from consumption of their products. This is becoming a serius concern to the insurance industry, as these lawsuits could expose insurers to potentional claims of general liability and product liability coverage way beyond their original expectations or allowance for the food industries risk.

The magnitude of potential claims could become a fiscal nightmare for the insurance industry as it is estimated in the USA alone; death caused by obesity-related illness could reach as high as 300.000 a year. This is equivalent or higher then the entire loss of life caused by the tsunami in Asia on 26 December 2004 - with the key differencebeing tsunami occurs rarely whereas obesity is present daily.