Life and health insurance companies are taking some heat for their investment decisions.
A study by Harvard University researchers has revealed that the major insurance firms in Canada, the United States and Europe hold at least $1.88-billion (U.S.) worth of stock in fast-food companies.
"Our data illustrate the extent to which the insurance industry seeks to turn a profit above all else," Wesley Boyd, senior author of the study, said in a separate statement. "Safeguarding people's health and well-being take a back seat to making money."
Writing in the American Journal of Public Health, the researchers point out that consumption of fast food contributes to obesity and cardiovascular disease, two leading causes of preventable death. By investing in fast-food chains, they say, the insurance companies are further eroding public health.
"Insurers ought to be held to a higher standard of corporate responsibility," they write, especially in light of the recent U.S. health-care reforms that are expected to expand the power and profits of private insurance firms.
In some respects, it could be argued that investing in fast-food chains may hurt the balance sheets of the insurers in the long run. If they have to shell out more money for medical treatments, their profits could take a hit. And that won't please their shareholders.