Factors contributing to the need for price revision
Medical inflation is on the rise. Inflation for healthcare is projected to be between 10.97% to 13.36% for South East Asia. Source-NASDAQ listed Willis Towers Watson
Premiums are Age-adjusted. Premiums increase with age because older individuals are more likely to require treatment.
A surge in elective treatment post-pandemic. Postponed procedures during the pandemic and heightened health awareness and caution have led to an increase in elective treatments.
Risk pooling via Community-Rated products. In a community-rated system, a hefty claim by one member does not directly result in increased premiums for that individual. Instead, the risk is shared across all members. While individual claims do not affect personal premiums, the overall claims experience of the entire group can lead to adjustments in the community rate. If the insurer experiences higher-than-expected claims costs for the group, they might increase premiums for everyone the following year.
The increase may appear unreasonable for a healthy member. However, the same system also ensures that a member who eventually needs it will never be put in a situation where their premiums inflate in folds after a medical ordeal.