Self image encourages misleading applications

by Gill Montia

Story link: Self image encourages misleading applications

AXA has been taking a look at the extent to which consumers mislead insurance companies when completing proposal forms.

Recent research by the insurer has revealed that one in 14 applicants knowingly present false information about lifestyle and previous medical conditions, when applying for cover.

It appears that the miscreants are not solely trying to keep premiums down but that their desire for a “perfect self” also inhibits the truth.

Almost one in 10 did not disclose smoking habits, however the most common insurance inaccuracy concerned alcohol intake, where men are 25% more likely to scale down their consumption than women.

In the case of women, 11% did not report their weight accurately, making females twice as likely as men not to disclose their true mass.

Also, one in 20 women shied away from reporting previous or current feelings of depression.

Of the respondents who had not made full disclosures 51% said they were too embarrassed to reveal personal information and 17% thought the truth might result in an application being rejected.

AXA estimates that 25% of Britons incorrectly believe that they will face large premium increases if they are honest about particular lifestyle habits or medical conditions.

Whereas conditions that affect a large proportion of the population, such as depression and back problems, are unlikely to have a significant impact on premiums.

Applicants in the 18 to 34 year-old age range were most likely to hold back while the over 55s provided the most accurate information.