News Analysis - Insurers and the insured in bad shape over obesity.

(From Reinsurance)

Byline: Symon Ross.

As Morgan Spurlock's film 'Super Size Me' and Eric Schlosser's book 'Fast Food Nation' have tried to show, the fast food on which many Americans base their diets can have a shocking effect on the body when not balanced by healthier food, leading in the long term to a catalogue of illnesses that reduce both mobility and the ability to work of those who eat it.

Obesity is an issue that has begun to crop up repeatedly on the risk management and insurance conference circuit, illustrating that while the potential risk is difficult to quantify, the insurance community is keeping a watchful eye on the situation. Reinsurers, including Swiss Re, have been at the forefront of research analysing the huge impact obesity could have on the profits of the industry.

As is the case with tobacco litigation, none of the lawsuits against fast-food chains and junk-food manufacturers has yet come close to succeeding.

After all, it is difficult to convince a judge that you did not know eating five Big Macs and drinking a gallon of Coke each day would be bad for you. But some in the insurance industry are concerned that the road to court has been taken at all. The multinational fast-food companies are big business to the commercial insurance market, and a slew of claims and costly legal battles are not good news.

Wider effects of obesity