Disappointed with rise in IP premiums

That all the major insurance companies have increased their Integrated Shield Plan (IP) premiums immediately at the end of the 12-month moratorium is disappointing.

Ms Ho Lee Yen of AIA justified the need to do so with escalating claims cost ("AIA joins Aviva, Prudential in raising IP premiums"; Dec 6).

Of the six IP insurers, only NTUC-Income is a social enterprise. The other five are profit-oriented multinational companies whose first and primary priority is to deliver revenue growth and value to their shareholders.

With little competition and the entire market all to themselves, increasing the IP premium is the quick and easiest way for them to grow revenue.

Escalating claims cost is just an excuse.

I am disappointed that the authorities are doing nothing to stop these insurers.

I urge the regulators to seriously consider having MediShield Life take over the provision of the IP portion as well.

That will make the process more streamlined and efficient. Any cost savings can then be passed back to the policy holders in the form of lower premiums.

Patrick Tan Siong Kuan

A version of this article appeared in the print edition of The Straits Times on December 09, 2016, with the headline 'Disappointed with rise in IP premiums'. Print Edition | Subscribe