The claim is that it helps the company save money in insurance costs because its a preventive measure and helping people get and stay healthy. I have a real problem with this on several levels.
Its none of your insurance company's business as to what is wrong with you. This leads to bias and to loss of or lack of coverage.
Body fat percentage is not a good value to represent overall health. While my body fat percentage is probably higher than it should be, I go to the gym three times a week and get the recommended amount of exercise each week and not everyone can saying that..
Finally knowing someone's weight and body fat percentage does not get them to the doctor's office for a check up which is more important. Even skinny people need check ups.
Its no one's business what I weigh. That's between me and my scale and the doctor's office. During all my medical treatments, my husband is allowed to know everything but my weight. I am working on my personal deflabbification project. I will share I wear size 12 pants and wish I wore size 10 - that's all you need to know.
I understand the point is that insurers want healthier people but this is not the right way to do this. Find a different way. Work with the patients. Do not invade their privacy or financially penalize them. My insurance company gives us a freebie if we get an annual physical.