AIA, Aviva, AXA, Great Eastern, Income, and Prudential are likely to raise premiums on Singapore’s Integrated Shield Plans (IPs) after they suffered underwriting losses in 2017.
According to their financial returns, the six insurers have been suffering losses on their IPs since the launch of MediShield Life in November 2015.
Their combined losses reached S$390 million (US$286 million) last year, primarily due to AIA’s S$284 million deficit.
Only Income and Prudential experienced a dip in claims ratio last year from the year before, which helped softened the blow because of lower claims against premium income.
According to a study conducted by the Life Insurance Association (LIA) Singapore, average inpatient claims in private hospitals have expanded 8.1% in recent years.
This is in addition to a 7% compound annual growth in claims frequency for private hospital Integrated Plans.
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