Income Insurance’s IP claims inflation outpaces that of medical cost

CLAIMS inflation has significantly outpaced medical cost inflation for Income Insurance’s Integrated Shield Plans (IPs). Therefore, the insurer has moved to raise premiums across all hospital ward types. Other insurers have focused on raising premiums only for private hospital plans.

Medical cost inflation is currently between 10 and 13 per cent, but overall claims inflation for Income is up to 25 per cent for 2023 and the first quarter of 2024.

Income is raising the premiums of restructured hospital IP base plans by an average of 14 per cent, and by 23 per cent when riders are included. It has not raised premiums for restructured hospital plans since 2015. In 2021, it reduced premiums due to the Covid-19 pandemic.