The rise of GLP-1 receptor agonists, such as Ozempic and Wegovy, has been hailed for its effectiveness in weight loss and improving obesity-related health conditions. However, as these medications become more widely adopted, insurers face new challenges in assessing risks and managing long-term health outcomes. According to a recent publication by Swiss Re’s behavioural research experts, leveraging behavioural science could play a crucial role in navigating this evolving landscape.
Pharmaceutical companies continue to innovate in the GLP-1 space. For instance, Novo Nordisk recently entered a $2 billion deal with United Laboratories International to develop a new GLP-1 drug targeting obesity and Type 2 diabetes. This investment underscores the growing importance of these medications and highlights the need for insurers to stay informed on emerging treatments that could impact risk assessments and policyholder health outcomes.
Experts noted that a key concern in the use of GLP-1 medications is the potential for weight regain once patients discontinue the drugs. While these medications can aid in initial weight loss, long-term success often depends on sustained behavioural changes, such as diet and exercise modifications. This factor presents a challenge for insurers in accurately assessing health risks associated with policyholders who use these medications.
Swiss Re’s research highlights the importance of behavioural science in refining underwriting processes. Insurers can use insights from behavioural research to design underwriting questions that encourage honest and accurate disclosures from applicants. This approach helps collect valuable data and mitigate the risk of mispricing policies in an era where the long-term efficacy of GLP-1 medications remains uncertain.
Beyond underwriting, insurers can also leverage behavioural science to enhance health and wellbeing programs for policyholders. By integrating evidence-based behavioural interventions, insurers can support sustainable lifestyle changes, ultimately improving health outcomes and reducing long-term claims costs.
What are your thoughts on the use of GLP-1 medications in recent times? Share your insights below.
