Argus Insurance has launched Bermuda?s first industry-led Wellness Programme which it claims will assist in improving the health of its clients and therefore stabilise spiralling insurance premiums.

The programme, which is being extended free of charge to all current and future Argus clients, offers comprehensive health assessments as well as a multitude of on-line educational materials designed to encourage healthier lifestyles.

The assessments are to be followed by dedicated health reports, providing specific guidance and advice on each individual?s lifestyle needs and any necessary changes which should be made.

At a Press conference yesterday, Argus president Gerald Simons labelled the new initiative a ?revolution? in health care, in that it shifts the industry?s emphasis away from the curing of sickness towards its initial prevention ? a recurring theme at last week?s Health Summit at the Fairmont Hamilton Princess.

?Health care costs and, in turn, insurance premiums continue to climb,? admitted Mr. Simons. ?...We recognise that employees don?t get healthy or stay healthy by chance.

?Many people need extra encouragement in order for them to recognise and achieve their wellness goals. As an insurance company, the Argus Group is uniquely placed to assist with the diverse population of employees working in Bermuda today to improve their health.?

The cost of insurance premiums are directly related to the number of claims received, Mr. Simons added, stressing that a healthier workforce making fewer claims would lead to more affordable insurance costs in the future.

However, the initiative falls short of Shadow Health Minister Michael Dunkley?s call for ?wellness discounts? late last year, when he urged local insurance companies to offer reduced premium rates to those who make positive health choices.

But Argus group insurance executive vice-president Cindy Campbell insisted that the wellness plan ? which will simply provide advice and encouragement rather than direct financial incentives ? would still reduce costs in the long-term.

?You may well ask whether wellness programmes really work and the answer is a resounding ?yes?,? she said. ?A long-term study by the University of Michigan health management research council found that between 1979 and 2000, worksite health promotion saved employers between $80 and $225 per employee annually in medical costs. Johnson and Johnson company meanwhile found that they experienced an average net saving of over $150 per employee per year following the implementation of their ?Live for Life? health promotion programme. Wellness programmes do have an impact.?

Studies show that employees who are smokers, obese or physically inactive are far less productive in the workplace and cost their employers a great deal more than those who take care of themselves.

One American study highlighted by Ms Campbell showed that smokers can cost employers $1,760 per year in lost productivity and $1,623 per year in additional medical care costs.

?We believe that worksite wellness programmes stand alone as the long-term answer to keeping employees well in the first place and slowing down the rise in healthcare premiums and claims,? she said.