World No Tobacco Day: Lifestyle related addictions can be dangerous, due to convenience of smoking, says Nikhil Apte

Health insurance companies make a provision to disclose lifestyle-related information in the application form or sometimes as a part of the telephonic underwriting process, says Nikhil Apte, Chief Product Officer- Product Factory (Health), Royal Sundaram General Insurance Company.

In an interview with MintGenie, Apte said that unlike life insurance companies, which have ratings for smokers versus non-smokers, health insurers typically do not have such ratings.

Edited Excerpts:

Q. Smoking habits kill, yet so many people smoke. On average, how many health insurance-related claims does your company settle against smoking-related disorders?

Smoking is known to have pernicious effects on your physical as well as mental health. Smoking is a known risk factor for lung cancer, respiratory disease, heart disease, chronic obstructive pulmonary disease (COPD) which includes chronic bronchitis and asthma and decreased fertility, etc. Additionally, excessive tobacco use has been shown to have adverse effects on a person’s mental health, causing depression, mood disorders, and anxiety disorders in the long term.

These medical conditions contribute to 30-35 per cent of the entire claims outflow and the severity (average claims cost) of these claims is high. However, there may be other claims in the portfolio, which are a result of tobacco consumption.

For example, smoking also leads to stroke, cancer, breathing problems and chronic respiratory conditions, fertility problems, etc. but the claim gets registered as stroke, heart attack, COPD, etc. But non-smokers can also have these conditions but today we don’t have the mechanism to identify whether smoking is the only contributor to these claims.

Q. Do your prospective clients reveal their smoking habits?

Unlike life insurance companies, which have ratings for smokers versus non-smokers, health insurers typically do not have such ratings. However, this is being used judiciously as a risk factor. Therefore, in all our indemnity products we seek information regarding alcohol and tobacco consumption. However, there is no specific loading because of that. This information can be used as additional information for risk analysis. For example, if a customer discloses that he smokes 10 cigarettes a day, we may ask for a pulmonary function test (PFT) to determine any lung damage.

Health insurance companies make a provision to disclose lifestyle-related information in the application form or sometimes as a part of the telephonic underwriting process; companies collect this information from a customer. Avoiding disclosure of smoking or the use of any other tobacco product is very common, as large customers know the disclosure of the same can increase the premium of the policy. However, it is advisable to be honest in providing information about your habits, to avoid future complications like cancellation of policies or refusal of the claims.

Q. Does your insurance company take cognizance of e-smoking habits too?

There has been short-term evidence found that e-smoking or vaping is less harmful than the use of combustible cigarettes. Still, the health risk remains the same. We cannot categorically say that e-smoking poses a lesser risk of cancer as compared to smoking.

Most insurance companies will not differentiate the risk involved with respect to smoking and vaping, and treat it the same when it comes to underwriting acceptance.

Q. Lifestyle habits affect health insurance premiums. Despite this, people continue to indulge in tobacco-related addiction. What would be your advice to your customers?

There is consumer behaviour involved in this, typically people start smoking when they are young and unmarried. This habit is inculcated in an age when you are not aware of health risks or their impact on health insurance premiums. Smoking has high convenience factors unlike alcohol and hence people throughout their working life keep smoking.

We have seen that only when they see some adverse effects on their health like adverse ECG findings, angina, breathing issues, etc., and they consult a doctor then they start taking their health seriously and try to cut down on smoking.

Lifestyle habits like smoking, and alcohol consumption affect the health insurance premium indirectly and directly as they give rise to co-morbidities like hypertension, stroke, COPD, etc., and increase them from 10-100 per cent basis the company’s underwriting norms and the severity of the underlying co-morbidity. This is because the risk of smokers suffering from lifestyle diseases like hypertension, diabetes, COPD, etc. is more than that of nonsmokers.

Smoking for the long term increases the overall risk of comorbidities like stroke, heart attack, chronic obstructive pulmonary disease (COPD), etc. Quality of life can get adversely affected. Our advice to customers is to quit smoking as early as possible.

Q. How much difference do you think “World No Tobacco Day” makes in awareness?

“World No Tobacco Day” is celebrated to highlight the negative effects of tobacco products on a person’s overall health. The different campaigns are run to encourage tobacco users to quit and claim the right to a healthy lifestyle. This not only helps in improving the quality of life but increases the life expectancy.

This surely helps in taking steps to protect future generations and increase awareness about the harmful effects of smoking and its hazardous consequences which currently lead to more than 8 million deaths worldwide annually. These activities are also useful in providing effective and compassionate solutions for leading a healthy life and protecting the environment.