Surge in claims drags some Integrated Shield insurers into the red; higher premiums expected
As medical costs rise, there is ‘no choice’ but to raise rates to allow for a price buffer, says market watcher
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[SINGAPORE] A double-digit surge in claims is putting pressure on the profitability of Integrated Shield Plan (IP) insurers, raising the spectre of more premium hikes.
For six IP insurers, net claims surged by between 9 and 27 per cent last year, due to medical cost inflation and higher claims particularly among older policyholders. Four out of seven IP insurers posted underwriting losses in 2024. Those in the red were Income Insurance, Singlife, HSBC Life and Raffles Health Insurance (RHI).
The only one to show a decline in net claims – of 18 per cent – was RHI. General manager Ben Siah said that RHI takes “a disciplined approach to adjudicating claims, ensuring that claims paid out are reasonable and customary”.
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