Insurers adjust benefits, premiums based on claims

I fully agree with Dr Desmond Wai ("Analyse data to find cause of rising insurance claims"; Oct 17).

The medical insurance rider is a supplementary coverage to the basic policy ("Policyholders with riders run up higher treatment bills" and "Panel suggests doing away with medical insurance riders"; both published on Oct 14).

Those who see a need and wish to ensure total medical cost coverage pay the additional cost to have peace of mind - that's the basic purpose of insurance.

Riders were introduced by insurance companies, and they would have done their analyses and probability studies based on historical claims to arrive at the premium cost.

Policyholders decide on the need for the purchase of a rider. Insurance companies adjust benefits and premiums based on claims.

A more detailed analysis needs to be done before recommending any removal of the rider.

We need to bear in mind that with an ageing population, claims cost will naturally increase.

A good and full analysis of historical claims will certainly help highlight root causes so that objective action can be taken to improve the system.

Seet Puay Sim