News that AIA is to increase its health insurance premiums drew strong reader interest this week…
AIA is to increase its health insurance premiums citing “…significantly increased costs across all claims, including medical conditions or treatments”.
The firm says reviewing premiums is one way to ensure its products remain sustainable, and that several factors contribute to its decision to revise premiums.
Among them are medical advancements that give customers more treatment options, less invasive diagnosis or treatment, and improved patient experience and outcomes – “…but are typically at a higher price”.
The firm also points to an increase in general medical and private hospital costs that are above the average level of inflation in the broader economy. Adding to the mix is the country’s aging population, and a “…growth in chronic conditions such as heart disease, cancer, diabetes and obesity”.
Key dates for advisers are:
- From 1 November 2024, new business premiums for AIA and ASB Private Health, AIA Cancer Care, and Specialist and Diagnostic Testing Benefit (sold with AIA Starter Plans) will increase
- From 20 November 2024, existing business premiums for AIA Private Health, AIA Cancer Care, AIA Starter Plans, and closed Sovereign and ASB Health policies are increasing on policy anniversaries
- From 1 January 2025, existing business premiums for closed AIA (ex-branch) health products are increasing on policy anniversaries
All premium increases are in addition to any applicable age-related increases, states the firm.