TAL is to charge higher premiums for overweight and obese customers, to reflect their greater risks.

It has adjusted its body mass index loading for new policies.

“As an industry, we are continuously working towards long-term sustainability, and there is an industry need to review what is classed as standard risk,” GM Retail Distribution Niall McConville said.

“We believe in appropriately pricing risk based on available evidence to ensure our ability to pay claims in the future.”

The Australian Health Survey for 2011/12 showed nearly 63% of Australian adults are overweight or obese, which equates to about 16.9 million people.

Mr McConville says clients can have their body mass loadings reviewed.

“This hopefully is an incentive for people to get healthier. Customers should be paying the right price for their risk.”