Key challenges for adopters of GLP-1 medications, such as Ozempic® and Wegovy®, are side effects, costs and the potential of weight regain after discontinuing the drug, is one the key points of the Swiss Re’s report on the potential impacts of GLP-1 medications on insurance market risk pricing.

While the buzz around GLP-1 receptor agonists stems from evidenced success for weight loss and improvement in obesity-related comorbidities, the outcome of such treatments is not always a positive one. As such, Swiss Re has decided to focus on “the importance of pairing behavioral science approaches with drug adoption. Long-term impact hinges not solely on medication but also on patient behavior. Insurers can leverage behavioral science to improve the health outcomes of policyholders and better assess risk profiles in this GLP-1 drug era.”

The report’s key points include:
 

• The key challenge for adopters of GLP-1s, such as Ozempic® and Wegovy® is the potential for weight regain after discontinuing the drug.
• Up to two-thirds of lost weight could be regained within a year post-discontinuation.
• The long-term benefit of GLP-1s hinge not solely on the medication intake but also on patient behaviour and sustained lifestyle change.
• As insurers navigate the complexities of assessing risk and supporting customers, behavioural science offers valuable tools to encourage honest disclosures and inspire lasting lifestyle changes.
• Pricing risks accurately around GLP-1 usage is a key challenge for insurers. Underwriting questions informed by behavioural science can build trust and encourage accurate and honest disclosures, allowing insurers to collect valuable information and avoid risk mispricing.
• Insurance health and wellbeing offerings can leverage behavioural science research to optimise sustained change among policyholders.

For more information, read the Swiss Re report here or download the related factsheet here.