Insurance company Prudential is looking to charge its Integrated Shield plan customers up to 300 percent more in annual premiums.
The additional fees will be based on how often they make use of private hospitals.
Prudential will adopt this pricing approach for its PRUshield Extra A Premier, the rider of its IP covering private hospitals, from 1 May this year.
Just like motor insurance, Prudential will offer a 10 percent no-claims discount on renewal of premiums if they have minor or zero claims in the past 3 policy years.
Existing customers who are undergoing long-term medical treatment for severe health conditions or have sought treatment for such conditions in the past three policy years do not have to adopt the new pricing.
As such, their premiums will not be affected.
This move will mark the first time an IP insurer will tie annual premiums to claims rather than age band.
Mr Mack Eng, head of medical at Prudential Singapore, said the new approach “rewards those who stay healthy and is deemed to be fairer, as future premiums will be determined based on age as well as one’s claims experience”.
He said that the new pricing policy is meant to “encourage and reward healthy lifestyles, and ensure sustainability in the long run”, with private healthcare costs rising at 18 percent a year.
