The same warning signs that led the state of our healthcare insurance to what it is today has also just appeared in the motor insurance industry. What's going to happen next?
If you recall, earlier this month, it was announced that patients with new Integrated Shield Plan (ISP) riders will no longer be able to enjoy zero co-payment of their hospitalisation bills. A 5% co-payment will now be imposed (capped at $3,000 annually) to address the issue of over-consumption of medical services.
Between 2005 - 2016, the industry's claims ratios surged from 42% to 84%. These rising claims have prompted hikes in ISP and rider premiums, but that didn't help the insurers from still making underwriting losses.
Q: How did this come about?
A: Rising claims + underwriting losses.
For many years, riders on top of their healthcare insurance policy (which would allow one to not fork out a ......
