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Life insurance underwriting tightened up

Date: Wed, 22 Feb 2006

Life insurance underwriting is to be tightened up following evidence that many consumers are lying about crucial details on their initial application forms.

One leading life insurance provider, Scottish Provident, is already introducing procedures that will attempt to ensure that clients do not lie about health details such as their weight.

The new application forms will ask customers when exactly they last weighed themselves to help ensure the answer is accurate and up-to-date. It is hoped that insurers will then be able to set a more realistic premium level given the link between obesity and the increased risk of developing diabetes or suffering a heart attack.

Nigel Bradshaw of Scottish Provident said: "We know that people normally understate their weight, mainly because they are in denial about the subject, although there are also some people who will lie just to get cheaper premiums."

Recent figures suggest that 21 per cent of UK adults are now obese – meaning they have a body mass index of 30 or more.



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Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.