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When the price of hamburgers or public transport fares increases, everyone can easily notice. However, for medical insurance, with annual premiums often amounting to several thousand dollars, when you receive a premium payment notice, do you ever retrieve previous payment notices to check how your premiums have changed each year? You may feel that medical insurance premiums seem to increase every year, but there has long been a lack of transparency regarding the scale of these increases, making it impossible for consumers to assess them. Over the past three years, 10Life has collected premium data for various medical insurance products on the market in an attempt to uncover the truth behind medical insurance premium increases. This article examines the increases in mainstream medical insurance products. The study covers the standard ward plans with supplementary medical cover offered by AIA、AXA、BupaBupa、Cigna、FWDFWD、ManulifeManulife、Prudential and Sunlife (see Note 1).

We compare premiums for the same periods in September 2017 and September 2019. Assuming that the policyholder was aged 35 in September 2017, they would have been 37 in September 2019. We compare the premiums applicable to the corresponding ages at the time (see Note 2). This study compares changes in premiums over the two-year period for non-smoking men aged 35 and 37, 45 and 47, and 55 and 57.

The study found that over the two-year period, premiums for male policyholders aged 35 increased by between 4.1% and 17.8%; the increase for those aged 45 reached as high as 23.4%, while the increase for those aged 55 was as high as 20.9%. For ages 35 and 45, the product with the most significant premium increase was ManulifeManuGuard (Standard) with Supplementary Medical Cover; for age 55, the product with the highest increase was Together Hospital & Surgical+ with Supplementary Medical Cover. For all three age groups, SunHealth Medical Care 1 + Optional Extra Benefits recorded the lowest increase, at just 4.1%–5.2%.

There are two main reasons for increases in medical insurance premiums. The first is the age factor. Generally speaking, as policyholders grow older, the risk of making a claim increases, and premiums rise accordingly. When taking out medical insurance, you can refer to the product’s premium table, which lists the premiums for different ages. However, this premium table only reflects the premium applicable to the policyholder’s age at the time and does not represent future premiums. This gives rise to the second factor behind premium increases—medical inflation. Insurance companies periodically review the entire premium table and increase premiums for different age groups. Due to space constraints, we use only the products with the most significant premium increases to break down the increases attributable to the two main factors: age and medical inflation.

There are many causes of medical inflation, such as increases in hospital room charges, doctors’ fees and medication costs, as well as advances in medical technology that make diseases which were previously untreatable treatable today, resulting in more medical claims. To address medical inflation, insurance companies may not only increase premiums but also raise the benefit limits of medical insurance accordingly. For example, although the premium increase for ManulifeManuGuard (Standard) with Supplementary Medical Cover is substantial, the product’s benefit limits for several items have also increased significantly.

If you intend to maintain medical insurance over the long term, you should consider not only the current premium (at the time of taking out the policy), but also your future ability to afford it. The rate of premium increase is one indicator. Consumers should also pay attention to whether the insurance company increases the level of cover at the same time as raising premiums. Do these benefits genuinely improve the protection available to the insured, or are they merely minor concessions? For information on the projected coverage ratios of mainstream medical insurance products across various illness and injury scenarios, please visit 10Life’s Product Decoder.

There is no doubt that medical insurance is a complex product. You should understand your personal needs and compare products from multiple perspectives. If you have any questions, you can use “Ask a question anonymously” on the 10Life website to receive prompt responses from multiple licensed advisers.

The above study is limited to major mainstream medical insurance products. However, medical insurance products serve different purposes. For example, high-end medical insurance products are not included in this study. Their claims experience differs and may result in premium increases of varying degrees. 10Life will publish further analyses in due course, so please stay tuned.

Note:

The mainstream medical insurance products compared in this study (standard ward plans with supplementary medical cover, Supplementary Major Medical, abbreviated as SMM) include: AIA Super Good Health 2 + Supplementary Medical Cover; AXA TrueCare Medical + Supplementary Medical Benefit - Standard; Together Hospital & Surgical+ Supplementary Medical Cover; HealthFirst Choice+ Supplementary Medical Cover; FWD FWD Medical + Optional Medical Enhanced Benefits (Standard); ManulifeManuGuard - Standard - Supplementary Medical Cover; Prudential PRUmed Lifelong care plan+ Supplementary Medical Cover; SunHealth Medical Care 1 + Optional Extra Benefits

10Life compared the premiums for mainstream medical insurance products at the two points in time, September 2017 and September 2019, for non-smoking male policyholders, based on their respective ages andthe premiums applicable at the time.

Non-smoking male policyholder	September 2017	September 2019
35 and 37 years old	Premium at age 35	Premium at age 37
45 and 47 years old	Premium at age 45	Premium at age 47
55 and 57 years old	Premium at age 55	Premium at age 57

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.

10Life Editorial Team

Our team of professional content researchers focussing on insurance

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10Life Editorial Team

Our team of professional content researchers focussing on insurance

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10Life Product Comparison and 10Life Insurance Ratings are developed by 10Life Financial Limited, an authorised insurance broker company licensed with the Insurance Authority under License Number FB1526. 10Life Product Comparison and 10Life Insurance Ratings are developed for generic customer segments using mathematical calculations based on product information, facts and data, and are not influenced by any partnerships with or fees received from insurance companies. Any information on 10Life Platform ("10Life Information"), including but not limited to Product Comparison, Product Ratings, Blog Articles are intended for general education purpose and reference only. None of the 10Life Information is intended, nor should they be considered or relied upon, as regulated advice, insurance, financial, investment or professional advice, recommendation, approval, endorsement, invitation or solicitation in respect of any insurance, financial or investment products. 10Life Information does not take into account your individual needs. Reading 10Life Information should not be considered as conducting a suitability assessment, and is not sufficient to form the basis of any decisions to purchase any insurance products. You should rely on information authorised by insurance companies, carry out your own research and/or seek independent advice from licensed intermediaries before purchasing any insurance products or making any insurance decisions. While reasonable effort is used when collecting, validating and updating 10Life Information from various channels, none of 10Life Group and its subsidiaries, affiliates, agents, directors, officers and employees will be responsible for any liability, claim or loss arising from or associated with you using 10Life Information. No warranty, representation or guarantee is given by 10Life Group and its subsidiaries on the accuracy, completeness and timeliness of the information. If you have any questions on 10Life Product Comparison and 10Life Insurance Ratings, please email us at enquiries@10life.com

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Medical insurance premiums rise by over 20% in two years; consumers should beware of medical inflation.

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