Group Claims Investments Show Insurance Companies Don't Value Health
April 15, 2010 - If life and health insurance companies really care about health and wellness, why do they invest large sums in fast-food firms?
The question comes from members of Cambridge Health Alliance, a Harvard-affiliated medical group. The group finds that as of June 2009, major insurers owned $1.88 billion of stock in the five leading fast-food companies.
J. Wesley Boyd, MD, PhD, assistant clinical professor of psychiatry at Harvard, is one of the study authors. Boyd says that insurance companies' business practices belie any claims that their first priority is the well-being of their clients.
One example of these business practices with negative public health consequences, Boyd says, is investment in fast-food companies.
"What spawned our report is our own interactions with insurance companies that bespeak an industry highly concerned with money and puts our patients' concerns in second place, if that," Boyd tells WebMD. "They will invest in the largest entities that cause morbidity and mortality as long as it makes money."
Boyd and colleagues name several prominent life and health insurance companies and list their investments in fast-food firms:
- Northwestern Mutual: $422.2 million
- ING: $406.1 million
- Massachusetts Mutual: $366.5 million
- Prudential Financial: $355.5 million
- Manulife: $146.1 million
- Prudential PLC: $80.5 million
- Standard Life: $63 million
- Sun Life: $26.8 million
- Guardian Life: $16.7 million
- New York Life: $2.4 million
- MetLife: $2.2 million
What should the companies do? Boyd says it would be good if they got out of the fast-food business. But he says it would be better if they used their position as large stock holders to push the firms to make healthier products.
Boyd and colleagues report their findings in the April 15 online issue of the American Journal of Public Health.
WebMD contacted several insurers for comment. Most of the firms noted that their investments in fast-food companies represent tiny fractions of their total investments.
"Even if it is a small part of their portfolio, to have $1.88 billion invested in fast food shows that their first and foremost concern is making money, not promoting health -- at least among those they insure," Boyd says.