Posts Tagged ‘investments’

Insurance Companies invest in Fast Food Stocks

Sunday, April 18th, 2010

In a report published this week by Health.com, 11 of the nations large life and health insurance companies were recognized for owning almost $2 billion dollars of fast food companies in their stock portfolios.  The report comes as a shock to some, and a belief that these insurance companies should be promoting healthy choices, not profiting from the stocks of fast food corporations whose products contribute to increased morbidity and mortality.  The fast food companies included were McDonalds, Burger King, KFC, and Taco Bell.

The author of the study, J. Wesley Boyd, M.D. stated, “They can charge you more for life insurance if you have these negative health outcomes that people have as a result of eating fast food,” while suggesting insurance companies profit twice by those who eat a significant amount of fast food, both through higher premiums for the insurance (due to worse lab test results), and money made through increasing stock prices.

The insurance companies refute that they’ve acted incorrectly in any way, and claim they are simply trying to return money to their investors.  Opponents believe the insurance companies should use their leverage to pressure the fast food companies to provide healthier, more nutritious options.  What do you think, is it ok for these companies to own stocks that are considered by most to be unhealthy?