Claims-based pricing for rider only a band aid

CALL it a bold move or a risk-pooling defying one, but insurer Prudential's take on mitigating escalating healthcare costs from private hospitals is unlikely to have much of an effect in keeping a lid on its claims costs.

Late last month, the insurer announced that it would roll out from May a claims-based pricing approach for its PRUshield Extra A Premier plan - the "claimable from first dollar" rider that covers treatments at private hospitals - affecting new sign-ups and those who renew their plans.

Essentially, a policyholder subscribing to this rider for private hospital treatments would have their renewal premiums tagged to their claims.

Prudential has assured that existing customers who are undergoing treatment now or diagnosed with a severe condition in future would not be affected by this, neither w…