The Daily Telegraph; 26 August 2003.
The cost of Public Liability insurance has risen by between 30 and 35% over the last year. But leading insurer Zurich London is warning the food and drink sector that they could be hit by even bigger rate increases for their product and public liability (PL) insurance if the trend to blame and claim takes hold.
The food and drink sector has traditionally been seen as low risk by the insurance industry, with the majority of their claims historically being linked to contamination and their PL premiums for have reflected this. However, Zurich London believes that if there is a rise in litigation or an increase in the fear of litigation then premiums will increase to cover these costs and insurers may apply exclusions to policies to withdraw cover for known risks.
Zurich London believes that the propensity to blame and claim is growing. People are becoming less inclined to think that it is their choice and responsibility if they risk their health by going into a restaurant which has a smoking section, put on weight by over eating, or if they get cirrhosis of the liver by drinking too much alcohol.
John Inwood, Head of Public Liability for Zurich London, said, "We are urging the food and drink sector to revisit their risk management policies, as insurers will be looking more closely than ever before at what the food and drink sector is doing to demonstrate that they are being socially responsible."
Many companies are already becoming more health conscious. Pizza Hut recently announced it would ban smoking in its restaurants and Kraft Foods said earlier in July that it would shrink its ready-made meals and snacks to help combat the obesity epidemic.
Zurich London, who insures restaurants, hotels, clubs, pubs and off licenses, asks all their customers to provide details of their general policy towards alcohol health issues, and their approach to risk management issues such as warnings on labels / adverts and marketing strategy.
Inwood continued, "In the US alcoholic drinks carry health warnings in the same way cigarettes do. I think there is a strong potential for something similar to happen in the UK. At a time when campaigners are calling for tighter controls on responsible drinking and mandatory labelling of alcohol content, we see an increase in the promotion of alcohol be it larger measures, two for one shots, “alcopops” are on the increase, so is the message getting through?"
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Alcohol - Box Copy
Source: Lord Bissell &Brook Report, (July 2001)
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Between 1980 & 2000, deaths from cirrhosis of the liver increased by 121% for men, 68% for women.
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One to two thirds of special education children are suspected to have Foetal Alcohol syndrome or a related conditions. 82% of those affected are not able to live independently. In the US, institutional and medical costs for 1 FAS child are estimated to be at least $1.4m over a life-time.
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Nearly 41% of all fatal car accidents involved alcohol. One third of those killed had not been drinking themselves.
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Only 33% of US citizens surveyed knew that consistent consumption of alcohol is associated with cancers of the throat and mouth.
Obesity – Box Copy
Source: Tackling Obesity in England. National Audit Office 2001
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Obesity levels in England have trebled in the last twenty years. Around 1 in 5 adults is obese.
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The most common problems linked to obesity are heart disease, type 2 diabetes, high blood pressure, osteoarthritis.
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Human cost: 18 million sick days/year; 30,000 deaths/year, resulting in 40,000 lost years of working life and lifespan decreased by average of 9 years.
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Financial cost: £1/2 billion/year in treatment costs, possibly £2 billion/year impact on economy.
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Obesity increased from 5.6% to 9% in boys, and from 9.3% to 13.5% in girls (primary school age) from 1884 to 1994 (the only nationally representative data available).
For further information contact:
Susannah Jeffery,
Zurich Financial Services
Tel: 01489 561559
Notes to editors:
Zurich London Limited (www.zurichlondon.com) is a leading provider of speciality insurance products and tailored solutions to corporate customers accessing the London market. All business received by Zurich London is underwritten by Companies within the Zurich Financial Services Group. The company manages a premium income in excess of USD 1 billion.
Zurich Financial Services is an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in more than 50 countries and employs about 64,000 people.
