Comparison of Premium Increase Rates for Medical Insurance (Large Room Plans) from 8 Major Insurance Companies

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Medical insurance premiums are increasing, but how much are they rising, and how frequently do these increases occur? Historically, there has been a lack of data in the market. Over the past three years, 10Life has collected premium data from various medical insurance plans in the market and analysed the premium increases of eight popular mass-market medical insurance products. For an insured person aged between 45 and 47, premiums could rise by as much as 23.4% over two years. The products included in this study are mass-market medical insurance plans for standard wards (semi-private rooms) with supplementary medical coverage (see Note 1) from AIA, AXA Hong Kong and Macau, Bupa, Cigna Healthcare, FWD, Manulife, Prudential, and Sun Life.

Assuming the insured is a non-smoking male, aged 45 in 2017 and 47 in 2019, we compared the premiums for the corresponding ages in September of those two years. The study found that the eight popular mass-market medical insurance plans for semi-private rooms saw an average premium increase of 16.7% over the two years. Among them, Manulife’s Lifelong Protector (Standard) with additional medical coverage had the highest increase at 23.4%, while Sun Life’s Heartfelt Medical Protection 1 with optional extra coverage had the lowest increase at just 4.8%.

There are two main reasons for medical insurance premium increases: ageing and medical inflation. Generally, as age increases, the risk of claims rises, leading to higher premiums. Additionally, rising medical costs, advancements in medical technology, and the introduction of more treatments and medications contribute to more claims, resulting in medical inflation. We have attempted to break down the increases caused by ageing and medical inflation (see Note 2). As shown in the chart below, from age 45 to 47, the average premium increase due to ageing is approximately 9.2%, while the average medical inflation rate over the two years is about 6.8%.

Consumers naturally do not welcome premium increases, but with the pressure of medical inflation, it is challenging for insurance companies to avoid raising premiums. Therefore, consumers should also pay attention to whether the coverage limits of medical insurance products are increasing accordingly to keep pace with medical inflation. Otherwise, the medical protection provided by the product may gradually diminish. Although the premium increase for Manulife’s Lifelong Protector (Standard) with additional medical coverage is high, the product has also seen significant increases in compensation limits for various items.

When consumers purchase medical insurance, they often only consider the premium at the time of purchase. However, since medical insurance premium increases outpace general consumer inflation, those who wish to maintain medical insurance into old age should be mindful of the long-term impact of medical inflation on premiums. For instance, assume Mr. A is 35 years old in 2019, with a medical insurance premium of $4,000 (while the premium for a 65-year-old is $12,000). Based on an annual medical inflation rate of approximately 2.5% to 5.4% (see Note 3), it is estimated that in 30 years, when Mr. A is 65, his premium could range from $25,000 to $58,921. Therefore, even if you can afford the premium today, you should consider your ability to bear the cost in the future!

As for the coverage of medical insurance, simply comparing individual compensation limits does not provide a clear picture of how much a medical insurance plan will cover. Therefore, 10Life has consulted specialist doctors on the medical expenses for various injury and illness cases to calculate the expected coverage rates for conditions such as cancer, angioplasty, anterior cruciate ligament surgery, and endoscopy. You can explore 10Life’s Product Decoder for more details.

If you have any questions about medical insurance, such as detailed policy coverage, premiums for specific ages, or underwriting based on your health condition, you can use the ‘Ask Anonymously’ feature on the 10Life website to receive immediate responses from multiple licensed advisors.

Notes:

The mass-market medical insurance products compared in this study (standard ward plans with Supplementary Major Medical coverage, abbreviated as SMM) include: AIA Premier ‘Health Protector’ Medical Protection Plan 2 + Additional Medical Coverage; AXA Hong Kong and Macau Smart Medical + Additional Medical Coverage - Standard; Bupa Shared Limit Medical Hospitalisation and Surgical Coverage + Supplementary Medical Coverage; Cigna Healthcare Custom Medical Insurance + Additional Medical Coverage; FWD Warm Care Medical + Optional Medical Enhancement Coverage (Standard); Manulife Lifelong Protector - Standard - with Additional Medical Coverage; Prudential Lifetime Protection Medical Plan + Additional Medical Coverage; Sun Life Heartfelt Medical Protection 1 + Optional Extra Coverage.

Calculation of premium increases due to ageing and medical inflation:

Ageing (%): 2017 premium at age 47 ÷ 2017 premium at age 45 x 100%

Medical Inflation (%): 2019 premium at age 47 ÷ 2017 premium at age 47 x 100%

According to the chart above (Table 2), the medical inflation increase for the eight mass-market medical insurance products over two years ranged from 5% to 11.2%, equivalent to an annual increase of approximately 2.5% to 5.4%.
The above study is limited to the main products of mass-market medical insurance. However, medical insurance products have different positionings. For instance, high-end medical insurance products are not included in this study, and their claims patterns may differ, potentially leading to varying degrees of premium increases.

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 編輯團隊

團隊成員由一群資料搜集員組成，主力保險相關資訊研究。

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10Life 編輯團隊

團隊成員由一群資料搜集員組成，主力保險相關資訊研究。

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Comparison of Premium Increases for Medical Insurance (Large Room Plans) from 8 Major Insurance Companies

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