A study on smoking habit and life offices' underwriting practices

• Main Authors: Goh, Li Fern, Neo, Cin Yen, Ng, Boon Eng
• Other Authors: Nanyang Business School
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Finance::Insurance
• Online Access: http://hdl.handle.net/10356/51945
• Institution: Nanyang Technological University

“Smokers are three times more likely to die before the age of 70 than non-smokers” reported a Straits Times article [S. T1993] on a study by the Imperial Cancer Research Centre at Oxford University. This isjust one ofthe numerous studies that have been done to show the higher mortality ofsmokers compared to non-smokers. This report discusses the harmful effects of smoking and how life offices underwrite smokers. It was said that the difference in mortality between smokers and non-smokers appears wider than that assumed by life offices in setting premiums and yet, there has been little, if any, movement by companies to increase the differentials in their premiums [AL,1994]. This report also discusses certain factors like passive smoking and cigar andpipe smokingwhich are not rateable by life offices.