In its latest Did you know?series, CommInsure has produced an excellent summary on the impact of the alarming rise of alcohol and recreational drug abuse.
Stressing the importance for advisers to be aware of how alcohol and drug abuse can affect their clients when it comes to their personal risk insurance needs, CommInsure sets out a series of (sourced) facts on alcohol and drug abuse, including:
- Emergence of recreational drug abuse as a major risk factor for stroke in young adults
- Cocaine use is on the rise: in 2008 detection of cocaine at Australian borders increased by 71%
- Drinkers face greater cancer risk; people who consume more than one alcoholic drink daily, on average, face a higher risk of developing six types of cancer; oesophageal, liver, colon, stomach, prostate, and lung cancer
- A link established between alcohol advertising in sport and Australia’s binge drinking culture and alcohol-related violence in the community
- In 2004/05 alcohol contributed to 3,494 premature deaths (early loss of life) in Australia
- The social burden of the disease was felt through the 1,031,660 hospital bed days attributable to alcohol
- From 2004 to 2005 the total tangible and intangible social costs of alcohol abuse in Australia are estimated at $15.3 billion
From an underwriting point of view, CommInsure suggests that it, along with other insurers, is very cautious when underwriting a client who has a history of drug and/or alcohol abuse, as it has sound evidence that alcohol/drug abuse increases the risk of claim whether it be death, a disability or a trauma event.
The insurer adds that any non-disclosure of drug and/or alcohol abuse at time of application may well see the claim denied for material non-disclosure, particularly if cover would not ordinarily have been granted if the underwriter had been made aware of this abuse.
The full article, written by CommInsure Technical Manager, Kyleigh Perkins, can be accessed from the Company Publications section of our riskinfo Resource Centre, or by clicking the following link: The Impact of Alcohol and Recreational Drug Abuse.
