Singapore insurers covering more niche areas in mental health to stay in the game
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As Singapore’s population ages rapidly, the insurance industry is expected to become more varied, and some observers hope, more inclusive.
ST PHOTO: GIN TAY
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SINGAPORE - Life insurers here are more actively covering niche conditions such as mental illnesses and dementia as well as emerging trends to cater to under-represented customer segments, as they find ways to stay relevant.
They told The Straits Times that as consumer awareness and demand increase, insurers would offer more types of plans, including those that are niche.
Industry players typically gravitate towards risks that are more common, as insurance works on the principle of risk-pooling. For instance, the costs of covering the less healthy are offset by the relatively lower costs of insuring those who are fit.
In recent years, insurers have been more active in exploring new areas they can cover.
In mid-May, Singlife, which is a fully owned subsidiary of Japanese life insurer Sumitomo Life, launched a plan that covers dementia care.
Coverage of dementia is not entirely new, but a standalone long-term plan called Singlife Dementia Cover is the first in the market to provide yearly payouts for dementia and mental health conditions such as major depressive disorder, schizophrenia and bipolar disorder.
Ms Helen Shen, Singlife’s group head of health, said there is a need to make the public more aware of dementia as the population ages.
Dementia is the fifth leading cause of disability in Singapore.
“We do not just come up with products which cater to the masses or will have a huge take-up rate; we must also come out with products to close the protection gap of Singaporeans,” Ms Shen said.
Newer plans are also structured in a more flexible and bite-size manner.
Income Insurance, which is linked to the National Trades Union Congress, launched the industry’s first standalone mental wellness insurance plan called the Snack self-care pack in late 2023.
The plan is based on a monthly subscription of $9.90, where subscribers can receive coverage of up to $200 a month for psychiatric consultations and $500 a month for psychotherapy sessions.
Income Insurance’s chief customer officer Dhiren Amin said mental health is a national concern, so it makes business sense to develop such products.
Mr Daniel Lum, chief product officer at HSBC Life Singapore, said the insurer first offered benefits linked to the diagnosis of ageing-related conditions and chronic diseases such as Parkinson’s, Alzheimer’s and dementia in 2019, under its retirement planning product.
“Such illnesses and conditions are on the rise, so this benefit helps to provide financial support to fund their long-term care,” he said.
However, industry observers told ST that in general, the take-up rate of niche coverage is low.
Ms Irma Hadikusuma, chief marketing officer at AIA Singapore, said the low take-up of niche products is due to the lack of awareness and perceived need among policyholders.
She said many customers do not view such insurance coverage as a necessity, as they believe their existing policies are sufficient to cover their common risks.
“Even though the take-up is currently low, we expect it to grow with time as it becomes more widely discussed in the public domain,” said Ms Hadikusuma.
Outside of health conditions, there are insurers who offer plans that cover emerging trends.
Great Eastern’s managing director of group insurance Jimmy Tong said the insurer started offering coverage for electric vehicles in 2023.
“As with all new protection products, demand starts at a reasonable level and ramps up over time,” he said, adding that risk-pooling among niche products is possible as long as the risk calculation is properly done.
As Singapore’s population ages rapidly, with an estimated one in four projected to be over the age of 65 by 2030, and as lifestyles change, the insurance industry is expected to become more varied and, some observers hope, more inclusive.
Manulife Singapore’s chief product officer Thomas Lee told ST that the firm anticipates a continuing trend towards more diversified insurance offerings that would allow for more personalised and precise coverage, while Prudential Singapore’s head of product management Jason Lim said the market would likely turn more fragmented as insurers focus on areas that are currently underserved.
Some areas covered by insurers
Benefits can either be features embedded in a policy, such as whole life or income protection, or offered as a plan on its own. Standalone plans allow policyholders to get more comprehensive coverage.
AIA has plans that offer mental health benefits for five prominent mental illnesses – major depressive disorders (MDD), schizophrenia, bipolar disorder, obsessive compulsive disorder (OCD) and Tourette syndrome. It has optional riders that cover dementia, as well as childhood developmental conditions such as attention deficit hyperactivity disorder (ADHD), autism spectrum disorder (ASD) and dyslexia.
HSBC Life offers benefits linked to the diagnosis of ageing-related conditions and chronic diseases such as Parkinson’s, Alzheimer’s and dementia under a retirement plan.
Income offers a standalone mental wellness insurance plan. Through a rider, it covers five conditions – MDD, schizophrenia, bipolar disorder, OCD and Tourette syndrome. It is the only insurer that covers mental conditions via a rider in the whole life category, which typically focuses on benefits for death, permanent disability and critical illness.
Manulife offers additional benefit payout upon diagnosis of MDD or generalised anxiety disorders of the mother under a maternity plan. Under its critical illness plans and riders, there are payouts for when the juvenile life insured is diagnosed with ADHD, autism of specific severity, or dyslexia of specific severity.
Prudential has an income protection plan that includes mental illnesses such as MDD, OCD, post-partum depression, schizophrenia and bipolar disorder. It has a whole life insurance plan rider that covers moderately severe Alzheimer’s disease or dementia, ASD, ADHD and dyslexia.
Singlife has a standalone long-term care plan that provides financial support for severe physical disabilities. It complements other plans as it focuses on cognitive decline and other severe mental disabilities.
