Dr Ulrike Sucher looks at the growing problem of chronic conditions and explains how international health insurers are providing clients with more options.
However, this is changing – some international private medical insurance (IPMI) providers are now able to offer individuals and small groups cover for chronic conditions, although the approach may differ from insurer to insurer.
As an example, at Allianz Worldwide Care we recently invested in AktuarMed, a knowledge-driven underwriting system for health insurance. It bases calculations on its morbidity database of over 50 million lives, enabling far more accurate assessment of medical risk than was possible before.
For private individuals/families and smaller corporate groups, the underwriter will assess each case and confirm whether cover for chronic conditions can be offered within standard rates or whether a surcharge (or exclusion) will apply - we also rely on our own evidence based knowledge and experience, used in conjunction with Aktuarmed, to come up with the most client-friendly decision.
It is the availability of tools like this which is helping insurers to assess the medical risk and likely cost of treatment associated with various chronic conditions. While a surcharge (or exclusion) may apply, there are a number of chronic conditions, such as allergies, that have little impact on the insurance risk and that can be covered without any additional cost.
For referance, an average, 70% of applications received by Allianz Worldwide Care are accepted for cover at standard rates, with no additional loading. If there is going to be a surcharge, insurers offer the applicant the choice of opting for cover with a surcharge or having the condition(s) excluded from cover. Generally we find that most people prefer to have cover.
On clients’ radars
Due to the healthcare costs associated with treatment for chronic conditions, unsurprisingly, this topic is very much on the radar for our corporate clients and their brokers. There is greater interest than ever before on wellness programmes and preventative care when it comes to group health insurance policies.
Corporate clients look for health insurance plan benefits such as cardiovascular exams, neurological exams and cancer screening, as well as cover for complementary therapies. This is a very positive trend for the employees who benefit from these schemes, plus it makes these employers an even more attractive proposition from the point of view of potential new recruits.
However it’s the ability to be able to provide individuals and small groups with cover for chronic conditions which stands out as one of the most important recent developments in international health insurance.
Having your chronic and/or pre-existing condition covered by your insurance policy, even with a surcharge, is very reassuring, as it removes the likelihood of potentially high costs having to be self-funded when treatment is necessary. n
Dr. Ulrike Sucher is medical director at Allianz Worldwide Care
