The Biggest Loser

The adage bigger is better is not necessarily true. Moving larger things — people and objects — requires more physical strain. And recent reports indicate that being super-sized creates economic pains as well.

A recent report by the Society of Actuaries found that the total economic cost of an overweight and obese population in North America approaches $300 billion per year. Excess medical care costs caused by being overweight and obese is tallied at $127 billion. And economic loss of productivity caused by overweight or obesity for totally disabled workers costs $72 billion.

“The implications (of obesity) on workers’ compensation are disturbing,” said the National Council on Compensation Insurance Inc. Obesity increases the rate of several adverse medical conditions, in some instances tripling the medical costs in workers’ compensation insurance claims. Claims also grow faster for the obese than the non-obese, NCCI said. The group’s data indicates obese workers tend to require more costly medical treatments, and are more likely to result in permanent disabilities.

“It’s time for actuaries, the employer community and the insurance industry to take action and help consumers make smart, healthy decisions,” said Don Behan, an independent consulting actuary.

Novato, Calif.-based property/casualty insurer Fireman’s Fund Insurance Co. is doing just that. Through the company’s Wellness Initiative, employees are challenged on a healthy goal of their choice — anything from a specific weight loss goal to allotting more time at home reading with the family — with company incentives.

“Fireman’s Fund prides itself in a family-first, work second culture,” said Mike LaRocco, president and CEO of the company, noting the importance of employee wellness. He lives this mantra. An avid runner, employees often see him taking a cardio break in the company gym. He also heads the San Francisco Bay Area Board of the Junior Diabetes Research Foundation.

A safe workplace extends beyond following the most recent OSHA guidelines. And independent insurance agencies can prove their value beyond providing a policy and a price if they can help their customers implement a corporate wellness program and educate them on the hazards of obesity.

The majority of consumers surveyed by the Society of Actuaries said they would be willing to follow a healthy lifestyle, such as participate in a health and wellness program, if they were provided incentives through their health plan. So why not help employers establish healthy lifestyle practices and seek out health plans that reward positive performance?

Healthy living can help to reduce the severity of workplace injuries. Additionally, “Investing in the well-being of our employees creates a solid foundation for both growth and retention, while supporting top-notch talent. It’s a win-win business model,” LaRocco said. On the other hand, going along with the status quo when it comes to obesity, means both the employee (who has a shorter lifespan) and employer (which could have higher workers’ comp claims) lose.

Topics Workers' Compensation