Aesthetic aside, Skinny Fat people have more belly fat than a normal person.
Most of the belly fat is visceral fat.
Professor Jimmy Bell has name for Skinny Fat people—TOFI’s
TOFI’S—Thin on the outside and fat on the inside.
Thin on the outside—Less muscle mass, lanky skeleton framework
Fat on the inside—Tendency to store most of the fat on belly i.e. surrounding the organs like heart/liver.
This type of fat doesn’t just sit there, it communicates with your organs and disrupts its normal functioning. It is this fat that sends out chemical signals which eventually leads to insulin resistance, diabetes and heart conditions, rather than the fat lying in dimples underneath the skin.
So essential what Dr. Bell is saying that a Skinny Fat people (usually they are within the normal BMI range) is at a higher risk of developing chronic diseases like type-2 diabetes.
Honestly, when my waist was 39 inches (sometimes 40 due to bloating, inflammation) I was not worried about medical reasons (as at that time I was not armed with the research that I know now), but I lost almost 10 inches from my belly because I was a health club owner and used to feel like a hypocrite.
At the same time, my slim fit ZARA Shirts used to look awkward and at the get together I spend a lot of time holding my breath trying to ensure that my belly was not outdoing my chest…haha….
These were pretty strong reasons and I managed quite a transformation here.
I am currently at 9–10% body fat at the time of writing this answer: