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Is it difficult for COVID-19 patients to buy insurance? This is what insurers say…
“Have you undergone or been advised to undergo any examinations in the past five years?” When purchasing life insurance, critical illness insurance, medical insurance and similar products, you are required to declare your medical history. If you have had or currently have COVID-19, or tested positive for COVID-19 during Hong Kong’s mandatory universal testing programme, would this be regarded as a “pre-existing condition”, regardless of the severity of your illness, and ultimately affect your ability to purchase insurance?
Insurance intermediaries: It is difficult to pass underwriting after contracting COVID-19
There is currently no answer to this question. However, many insurance intermediaries in Hong Kong have already begun using this opportunity to promote medical insurance. For example, some have said: “A prospective client’s friend contracted COVID-19 and therefore has not yet passed underwriting (that is, the insurance company’s assessment of whether to accept the insured person or impose additional policy terms). Even if insurance can be purchased, there is a high chance that the lungs will be excluded, or that insurance may not be available at all.”
Figure 1: An insurance agent promoting medical insurance on Instagram. (Source: LIHKG discussion forum)
Some insurance companies are reportedly imposing terms during underwriting
It has been reported that some insurance companies have begun imposing terms during underwriting on people who have had or previously had mild or severe COVID-19 and wish to purchase insurance. For example, those with mild cases may be subject to a 12-month observation period, followed by a further eight weeks to obtain medical reports. Severe cases, including those who have been admitted to an intensive care unit (ICU), may not be considered.
Indeed, COVID-19 is an unprecedented pandemic of the century. Many people are concerned that even after recovery, there may be unknown after-effects. Insurance companies are usually highly cautious about risks that cannot be determined with certainty.
According to the Insurance Authority’s Guideline on Enterprise Risk Management (Guideline 21), insurance companies should not underwrite risks that exceed the scope of their insurance expertise. Insurance companies may also adopt measures to transfer risk. These include reinsurance, increasing premiums, adding exclusions (such as excluding the lungs), and even declining cover.
Figure 2: Screenshot of Guideline 21 issued by the Insurance Authority.
Universal testing may increase the number of confirmed cases. Should you “rush to buy insurance” now?
When Hong Kong implements universal testing in future, previously undetected COVID-19 patients will be identified. Some may be asymptomatic, some may have mild symptoms and others may have severe symptoms. All these cases will be recorded by the Government. If having had COVID-19 is indeed an important underwriting factor, does this mean that most Hong Kong people will find it difficult to purchase insurance in future, and should therefore “rush to buy insurance” now?
10Life contacted more than 20 major insurance companies in Hong Kong to ask whether COVID-19 patients or recovered patients would be subject to special terms when purchasing different insurance products, and whether the severity of their illness would have a significant impact on underwriting.
Table: General underwriting requirements for recovered COVID-19 patients, based on written replies from insurance companies
| Insurance company | Recovered patients with mild symptoms | Recovered patients with severe symptoms |
| AIA | Policy applications are considered from multiple perspectives and will not be determined based on a single item or factor | |
| Bowtie | Standard underwriting one month after recovery | Each case will be assessed individually from a medical perspective |
| China Life* | Standard application one month after recovery; if the applicant was admitted to a general ward but had no complications or after-effects, a medical report is required for applications made three months after recovery | If the applicant was admitted to an intensive care or severe illness ward but had no complications or after-effects, consideration will be given six months after recovery, depending on the circumstances |
| Futum | Applicants who did not require hospitalisation or were treated in a general ward may apply three months after making a full recovery | Applicants who were admitted to an intensive care unit, intensive care ward or severe illness ward may apply one year after making a full recovery |
| FWD | Applications will generally be accepted approximately one month after recovery | Further assessment will be made depending on the severity of the illness and the type of insurance applied for |
| Generali | Life and critical illness insurance applications are accepted one month after recovery | Life insurance applications are accepted three months after recovery, while critical illness insurance applications require six months after recovery; medical reports are required for both |
| Manulife | Standard underwriting is available one month after full recovery | Each case will be assessed individually based on the applicant’s medical records and recovery status |
| Prudential | Standard premiums are available if the applicant has made a full recovery for more than one month | Health risks will be considered during underwriting |
| *Information from underwriting guidelines | ||
Manulife: Most people with mild symptoms or who have fully recovered receive standard underwriting
Only a small number of insurance companies responded to our enquiries. Manulife stated that it has always carefully and rigorously assessed each policy application in accordance with established underwriting guidelines, and makes objective underwriting decisions based on the applicant’s actual health condition. If an applicant has been diagnosed or previously diagnosed with COVID-19 and has recovered and been discharged from hospital or completed the relevant isolation arrangements, the applicant must submit medical evidence, including a discharge summary, when applying.
Manulife further stated that, where necessary, its underwriting department would obtain medical reports from medical institutions to understand the applicant’s clinical presentation of COVID-19, including its severity and the applicant’s recovery status, before deciding whether it would affect different insurance products. Underwriting decisions are based on each applicant’s individual health condition, making it difficult to generalise. Factors considered include clinical presentation, treatment received, whether complications occurred, whether the applicant has fully recovered and whether follow-up consultations are required.
However, Manulife stated that, generally speaking, applicants who were asymptomatic or had mild symptoms, have fully recovered and are otherwise in good health will, in most cases, receive standard underwriting. Applicants with severe cases, such as those who have received intensive care, will be assessed individually based on their medical records and recovery status.
Prudential: Standard premiums available more than one month after full recovery
Prudential stated that, for applicants who have been diagnosed or previously diagnosed with COVID-19, it needs to know whether the applicant received inpatient treatment and the extent of their recovery. Generally, if the attending doctor certifies that the applicant has been fully recovered for a certain period, the application may be accepted. All COVID-19 test results must comply with the Government’s testing requirements. Cases without records of hospitalisation or medical consultation will be considered on an individual basis.
Prudential further stated that, where hospital treatment was not required, the applicant has completed self-isolation at home, has no complications and has resumed normal bodily functions and activities, and test results show that the applicant has been fully recovered for more than one month, standard premiums may be offered. All COVID-19 test results must comply with the Government’s testing requirements.
Possible complications of COVID-19 include respiratory failure, acute respiratory distress syndrome, sepsis and septic shock, thromboembolism or multiple organ failure, including damage to the heart, liver or kidneys. Older patients and those with existing health problems, such as hypertension, cardiopulmonary disease, diabetes, obesity or cancer, have a higher chance of developing severe symptoms. Prudential stated that these health risks are important factors to be considered during underwriting.
FWD: Applications accepted one month after recovery from a non-severe case
FWD stated that, for applicants or insured persons who have been diagnosed with COVID-19, cases involving a confirmed but non-severe infection—meaning that the person did not require hospital treatment or received treatment only in a general ward—will generally be accepted approximately one month after recovery for life, critical illness or medical insurance.
However, FWD added that further assessment must be made depending on the severity of the illness and the type of insurance applied for. Underwriting assessment will be carried out before the customer applies, based on the medical reports provided. As the virus may continue to mutate, the relevant underwriting requirements will also be updated as necessary. Those wishing to apply for or renew insurance are advised to consult a professional insurance agent or insurance company in advance.
Bowtie: Standard underwriting procedures can begin one month after recovery
Bowtie stated that if a person is currently infected with COVID-19, the application will be deferred until the person has fully recovered. For recovered patients who previously had mild symptoms, if they have fully recovered and have no complications, standard underwriting procedures can begin one month after recovery. Recovered patients who previously had severe symptoms, including those admitted to an intensive care unit or who developed serious complications, will be assessed individually from a medical perspective.
Regarding the same question, AIA’s customer service department only stated that “plan details” could not be discussed by email. AIA’s public relations department did not initially respond, but subsequently added that “policy applications are considered from multiple perspectives and will not be determined based on a single item or factor”.
Severe COVID-19 may affect underwriting; apply as early as possible
Following the responses from the insurance companies above, the underwriting “threshold” should now be clearer. Most insurance companies allow most recovered patients with mild symptoms to undergo standard underwriting one month after recovery. Recovered patients who had severe symptoms, however, require additional assessment.
If you are concerned about developing severe symptoms, complications or after-effects, or worried that relevant medical records may adversely affect future insurance applications, you should purchase medical, critical illness or other relevant insurance products as early as possible.
It is also worth noting that medical insurance has a waiting period. If you contract COVID-19 during this period and develop complications, the relevant part of the body may be regarded as a “pre-existing condition” and will not be covered by the insurance company.
Notes:
1. This article was compiled by 10Life using market information collected through various channels and is provided for general reference only. It does not take into account any individual needs or suitability and should not be regarded as sales advice. Before applying, you should discuss suitable insurance options with a licensed insurance adviser and rely on the information provided by the insurance company.
2. Last updated: 7 March 2022
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
10Life Editorial Team
Our team of professional content researchers focussing on insurance
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