GLP-1 medications such as Ozempic®, Wegovy® and Mounjaro® continue to dominate the health conversation in Australia. Originally developed for type 2 diabetes, they are increasingly being prescribed for obesity and weight management.

 

For advisers, a common question is whether taking a GLP-1 medication affects a client's ability to obtain cover.

 

The answer is nuanced. At AIA, our underwriters are typically less focused on the medication itself and more interested in the condition being treated, the client's overall health profile, and whether the health improvements achieved are likely to be sustained over time.

Yes – it does matter.
 

For clients using GLP-1s to manage type 2 diabetes, our underwriters will typically assess:
 

In many cases, GLP-1 use may be viewed positively because it can indicate evidence of active and appropriate management for better health outcomes.

When prescribed for obesity or weight management, our focus shifts towards:
 

Obesity remains an important long-term mortality and morbidity risk factor. Our underwriters are interested in understanding whether the health improvements achieved are likely to represent a lasting change in risk, or whether risk may return if treatment ceases.

Potentially, depending on the broader clinical picture.

 

Our underwriters recognise that clients who have successfully improved their health through GLP-1 therapy may present a different risk profile to those with untreated obesity or poorly controlled diabetes.

 

Factors that may be viewed positively include:
 

That said, we don't simply provide underwriting credit because a client is taking a GLP-1 medication. The key question for our underwriters is:
 

Across Life, Income Protection, TPD and Trauma insurance, the potential benefits are broadly similar: improved metabolic health, lower weight and reduced cardiovascular risk.

 

For Life insurance, this may translate to lower mortality risk. For Income Protection and TPD, sustained weight loss may reduce the likelihood of disability arising from conditions such as musculoskeletal disorders, diabetes complications, cardiovascular disease and sleep apnoea. For Trauma insurance, emerging evidence suggests GLP-1 therapies may reduce the risk of major cardiovascular events such as heart attack and stroke.

When reviewing applications involving GLP-1 medications, our underwriters may consider:
 

Absolutely.

 

While the results seen to date have been encouraging, the long-term impact of GLP-1 medications on mortality, morbidity and insurance claims experience is still emerging.

 

Important questions remain around whether weight loss can be maintained over the long term, what future claims experience will look like, and whether any additional treatment-related risks may emerge as these medications become more widely used.

At AIA, GLP-1 use is not viewed as a red flag and, in many cases, it may be evidence of active and appropriate management to improve health.

 

However, our underwriters continue to look beyond the medication itself and focus on the broader health picture, including the underlying condition being treated, the health improvements achieved, and the likelihood that those improvements will be maintained over time.

 

Treatment is often long term and weight regain after discontinuation is common. This is central to underwriting assessment of sustainability.

 

For clients using these medications, encourage full disclosure and be prepared to discuss both the condition being treated and the overall health outcomes achieved.