AIA breaks new ground on health insurance pricing
More competition in the health insurance market is under way with AIA Insurance announcing a shift in its product lines.
Friday, April 22nd 2005, 8:10AM
by Rob Hosking
The company is setting up a $100 excess for claims for its specialist visits and procedures benefit.
“It avoids large premium increases,” says AIA’s national marketing manager Michael Hewes.
Hewes says in some cases the premium increase would have been 35%.
The company wanted to avoid significant premium increases, he told a road show in Wellington, if only because large increases mean the more healthy clients go elsewhere and the less healthy ones stay.
AIA is also launching a news business continuation total and permanent disability product.
This pays out in three sums, as opposed to the more usual payment after six months.
The reason for the change is that AIA has found that a “quite stunning” number of people who were disabled for two to four months recovered before the six months was up and were able to go back to work.
The first payment, of 10% or $10,000, is at two months; the second 25% or $25,000 after four months, with the remainder paid at six months.
If the client can go back to work before that six months is up, the balance remains credited to them and the premium adjusted accordingly.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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