Potential savings of switching to new riders may be diluted by insurers’ recent IP premium hikes
All Singaporeans are insured under the national MediShield Life scheme
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[SINGAPORE] Potential savings for those intending to switch from old Integrated Shield Plan (IP) riders to new ones could be lower than the average 30 per cent reduction previously reported by the insurers.
This is because the savings they cited are for rider premiums, but the premiums that a customer pays include that for the IP on top of which the rider is purchased.
And several insurers have raised the base IP premiums, with one insurer hiking its IP premium by 76 per cent.
Despite this dilution of premium savings, those who switch to new riders can still see rather substantial savings over the course of their lifetime, potentially exceeding S$100,000 for some.
The latest analysis of lifetime premiums was conducted by insurance advisory firm Havend after collecting data directly from insurers and through its market research. Havend provides advice on insurance coverage for consumers, including planning for retirement and other significant life stages.
Lifetime premiums here refer to the total premiums payable for the insured from the age of one to 100, but do not include MediShield Life premiums, which are a fraction of IP and rider premiums.
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As insurers regularly review and adjust the benefits and premiums of their products, lifetime premiums will also change over time.
Nevertheless, the information helps consumers compare products with similar coverage and across insurers, according to Havend.
All Singaporeans are insured under the national MediShield Life scheme, which covers expenses incurred for hospitalisations and certain outpatient treatments, such as radiotherapy for cancer and kidney dialysis.
The optional private IP provides coverage on top of MediShield Life, typically to cover stays in a higher ward class such as A or B1 types in public or private hospitals. About 71 per cent of Singapore residents, or about three million people, have IPs.
On top of the IP, insurers sell riders, which are generally meant to cover the patient’s share – deductibles and co-payment – of the bill, the rest of which would be paid by the insurer or MediShield Life.
About two million IP policyholders have riders. About two-thirds of them have legacy riders with maximum coverage, whose sales have ceased by April.
Those with these riders pay only the minimum deductible – at least S$1,500 before insurance kicks in – and a 5 per cent co-payment, capped at S$3,000 if they are treated by doctors listed on the insurer’s panel, or get treatment pre-authorised by the insurer.
The Ministry of Health (MOH) has required insurers to introduce new IP riders from April that no longer cover the minimum deductibles set by the ministry, and doubled the co-payment cap to S$6,000.
The result is that new riders will cost less, but policyholders on new riders must pay a larger portion of their bills. MOH said that over time, this move should help moderate overall healthcare costs and arrest the escalating trend of private healthcare costs and premiums.
Those who bought riders before MOH’s announcement on Nov 27, 2025, are not directly impacted by MOH’s requirements. Those who bought the old riders when or after the announcement was made must transition to new riders when their policies are due for renewal from April 2028.
The insurers earlier told The Straits Times that new riders are 16 per cent to 84 per cent cheaper than previous versions.
But five out of seven insurers increased the premiums of their base IPs and old riders from Apr 1, citing rising medical costs and higher amounts of claims made. Only Income Insurance revealed its range of adjustments then.
Havend’s data shows that IP premiums have risen mostly by a double-digit percentage, with one going up by 76 per cent, though there are IPs with premiums reduced for some age groups.
Premium adjustment for old riders was also mostly by a double-digit percentage, with the highest being a doubling of premiums.
Among the highest-tier IPs and riders – those that cover treatments in private hospitals – the smallest decrease in IP-rider lifetime premiums is for Income’s Enhanced IncomeShield Preferred. The lifetime premiums for an IP with the old Classic Care rider are S$649,662. They drop by 11 per cent to S$579,925 with the new Essential Care rider, which offers similar benefits.
The IP-rider lifetime premiums drop by 14 per cent for Income IP holders who switch from the old Deluxe Care to the new Optima Care rider, which costs more than the new Essential Care rider as policyholders pay a lower co-payment.
Both savings are significantly lower than the average 32 per cent decrease in rider premiums reported by Income previously.
IP-rider savings dilution is also seen in products sold by HSBC Life, Prudential Singapore, Raffles Health Insurance and Singlife following their premium adjustments.
Great Eastern and AIA Singapore are the only two insurers that did not raise premiums in this round of changes.
The biggest decrease in IP-rider lifetime premiums is with Great Eastern’s GREAT SupremeHealth P Prime, which covers treatments at four partnering private hospitals. The lifetime premiums with the Totalcare P Prime rider are around S$1.03 million, but they drop by 51 per cent to S$508,819 if a policyholder switches to the new Totalcare 2 Prime rider, which offers similar benefits.
Great Eastern’s highest-tier IP is the P Plus, which covers treatments at any private hospitals. The lifetime premiums with its P Signature rider are more than S$1.23 million, but they drop by 26 per cent to S$906,826 with the new 2 P rider.
Havend chief executive officer Eddy Cheong said rider premiums vary among insurers, but new riders are significantly more affordable.
When asked in March if expected premium adjustments would impact the attractiveness of new riders, MOH said it expects to continue seeing a “commensurate difference in premiums” for new riders, compared with legacy riders covering similar benefits.
Alex Lee, president of the Singapore Actuarial Society, said savings communicated previously were specific to riders, and “it may not be fair to characterise the increase in the IP premiums as negating the savings”.
General healthcare cost inflation would cause both IP and rider premiums to increase over time since both products reimburse medical bills incurred, and hence premium adjustments should be expected, he added.
Affordability not the only factor to consider
Although switching to new riders may lead to savings, both Havend and the Life Insurance Association, Singapore (LIA) said affordability is not the only factor for consumers to consider.
Havend advises consumers to consider their healthcare expectations, such as having the choice of staying in a higher ward class or in private hospitals, and coverage for pre- and post-hospitalisation expenses or additional cancer drug benefits.
These expectations need to be balanced with premium affordability. Havend published the lifetime premiums information to help consumers, said Cheong.
“If you are likely to seek medical treatment in the near future, it might make more financial sense to retain the old rider. For those who are young and working, riders might not be expensive, but as insurance premiums increase with age, you should review your affordability as you are nearing or in the retirement phase,” he said.
LIA similarly advises matching insurance coverage with individual healthcare needs and budget. As there is a wide range of products with varying levels of coverage, consumers are advised to consult a qualified financial adviser before making decisions.
“No one can predict illness or injury, nor the type of care that would be chosen in such circumstances, thus it is not possible to know if premiums paid will actually exceed payouts. Health insurance provides individuals an option to receive treatment and recover without having to worry about funding the costs on their own on short notice,” said LIA. THE STRAITS TIMES
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