Know more about medical insurance: ***

Transcription

1 Know more about medical insurance: *** I lens A wise consumer should not just compare medical insurance on the sole basis of price difference, but should instead study the terms in details, writes a veteran insurance trainer and educator in I lens, the newsletter published by the Office of the Commissioner of Insurance ( OCI ). In the feature article, Mrs Irene Wong, a Chartered Insurance Practitioner, gives practical advice to consumers on what areas they should take heed of in scouring the market for medical insurance cover. The insurance buyers who want overseas cover, consultation with specialists, Chinese herbalists, bonesetters, etc must check their policy cover carefully because these are only included by some of the insurers, the article reads. Moreover, they should check against those exclusions before deciding to buy. The general exclusions include, inter alia, pre-existing conditions and congenital abnormalities, pregnancy and fertility/infertility treatment, cosmetic surgery and routine medical examinations. Over half of the 214 complaints for the various types of insurance dispute received by the Insurance Claims Complaints Bureau in 1999 related to the interpretation of policy terms and non-disclosure of material facts. Therefore, the best practice for a buyer is to study the wording of the application form and the policy specimen carefully, and clarify with your agent or the insurer in case of any doubt, Mrs Wong added. Besides the feature, another short article entitled Poaching of Agents and Twisting of Policies should provide policyholders with helpful guidance on what questions to consider when being approached by insurance agents for replacement policies.

2 These agents may have changed their principals and so tend to induce their ex-clients to switch policies to their new principals. Indeed, to prevent twisting or transplanting which may involve misrepresentations or non-disclosures, the Hong Kong Federation of Insurers has issued a Code of Practice for Life Insurance Replacement ( Code ). Under the Code, a Customer Protection Declaration Form must be completed to ensure that an insurance agent has clearly explained to the policyholder the important consequences and potential disadvantages of replacing an existing policy. The I lens also brings home to its readers news on the latest legislative development and its impact on the insurance industry, such as the enactment of the Chinese Medicine Ordinance and the Electronic Transactions Ordinance; the visits and exchanges made by the OCI with international bodies; and the publicity efforts overseas to promote Hong Kong as a regional insurance centre The quarterly newsletter aims to promote public understanding of insurance and communication within the insurance industry. It is hoped that the general public and trade participants can make use of it to keep abreast of new developments in the industry, and to reflect any suggestions to the OCI. Copies of the bilingual I lens are available free of charge from the district offices, the Consumer Council and the OCI from tomorrow (August 22). The newsletter and details of the quarterly statistics on Hong Kong Insurance Industry are also available for downloading from the OCI s homepage ( For enquiries, please contact the OCI at End/Monday, August 21, 2000

3 Provisional Statistics on Hong Kong General Insurance Business Direct & Reinsurance Inward Business (HK$'000) Gross Net Gross Net Net Earned Commissions Commissions Gross Net Net Claims Management * Underwriting Class of Business Premiums Premiums Premiums Payable Payable Claims Paid Claims Paid Incurred Expenses Profit / (Loss) Accident & Health 1,999,485 1,601,419 1,425, , ,693 1,077, , , ,980 49,464 Motor Vehicle, Damage & Liability 1,329,348 1,096,504 1,074, , ,068 1,141, , , ,554-80,912 Aircraft, Damage & Liability 8,464 3,024 3,754 2, ,083 2,345 2, Ships, Damage & Liability 371, , ,757 45,607 21, , , ,178 29,433 4,888 Goods in Transit 537, , , ,863 82, , , ,940 80,114 97,800 Property Damage 2,258,657 1,281,382 1,239, , ,034 1,083, , , , ,783 General Liability 1,897,026 1,285,739 1,160, , ,763 1,624,276 1,053,643 1,174, , ,730 Pecuniary Loss 300, ,710 80,496 43,994 3, ,003 75,254 22,074 23,614 31,742 Non - Proportional Treaty Reinsurance 68,765 64,370 63,008 4,075 4,159 73,349 72,190 46,701 2,722 9,426 Proportional Treaty Reinsurance 179, , ,459 81,255 73, , , ,959 16,542-87,306 Total 8,950,489 6,200,716 5,769,286 2,087,932 1,385,176 5,805,106 3,768,420 3,555,944 1,082, ,047 * Underwriting Profit / (Loss) is calculated by subtracting "Net Commissions Payable", "Net Claims Incurred" & "Management Expenses" from "Net Earned Premiums" as reported by insurers. Statistics contained herein are compiled from statistical information provided by insurers in their quarterly returns to the Insurance Authority. The statistics are provisional and unaudited, and prepared on a calendar year basis. While due care is taken in the compilation of the statistics, the Insurance Authority disclaims any warranties or representations of any kind with regard to such information.

4 Provisional Statistics on Hong Kong General Insurance Business Direct Business (HK$'000) Gross Net Gross Net Net Earned Commissions Commissions Gross Net Net Claims Management Underwriting Class of Business Premiums Premiums Premiums Payable Payable Claims Paid Claims Paid Incurred Expenses Profit / (Loss) Accident & Health 1,876,330 1,500,814 1,326, , ,934 1,016, , , ,123 34,127 Motor Vehicle, Damage & Liability 1,226,276 1,011, , , ,341 1,028, , , ,038-55,538 Aircraft, Damage & Liability 1, , Ships, Damage & Liability - Statutory 9,034 6,321 5,773 1, ,971 6,555 6,958 1,739-3,841 - Others 272, , ,933 30,887 11, ,914 87, ,868 17,292 10,812 Goods in Transit 445, , ,077 92,236 64, ,245 97,531 86,567 71, ,496 Property Damage 1,620, , , , , , , , , ,817 General Liability - Statutory 1,314, , , , ,523 1,332, , , , ,979 - Others 439, , ,842 75,602 9, ,862 50,225 78,210 60,793 7,623 Pecuniary Loss 227,157 51,940 46,517 32,312-2, ,877 24,601 13,174 17,339 18,347 Total 7,432,334 5,106,298 4,742,387 1,695,934 1,095,544 4,765,114 2,979,391 2,893, , ,465

5 Provisional Statistics on Hong Kong General Insurance Business Reinsurance Inward Business (HK$'000) Gross Net Gross Net Net Earned Commissions Commissions Gross Net Net Claims Management Underwriting Class of Business Premiums Premiums Premiums Payable Payable Claims Paid Claims Paid Incurred Expenses Profit / (Loss) Accident & Health 123, ,605 98,535 30,114 23,759 61,433 49,164 53,582 5,857 15,337 Motor Vehicle, Damage & Liability 103,072 84,505 89,505 23,733 18, , ,331 85,636 10,516-25,374 Aircraft, Damage & Liability 7,426 2,940 2,968 2, ,546 2,224 1, Ships, Damage & Liability 89,482 53,574 41,051 13,405 8,380 44,989 32,296 24,352 10,402-2,083 Goods in Transit 92,128 67,632 62,996 22,627 17,638 36,936 27,727 45,373 8,681-8,696 Property Damage 638, , , , , , , ,972 61,900 40,966 General Liability 142, , ,091 27,606 23, , ,042 97,141 12,300-16,374 Pecuniary Loss 73,188 50,770 33,979 11,682 5,409 92,126 50,653 8,900 6,275 13,395 Non - Proportional Treaty Reinsurance 68,765 64,370 63,008 4,075 4,159 73,349 72,190 46,701 2,722 9,426 Proportional Treaty Reinsurance 179, , ,459 81,255 73, , , ,959 16,542-87,306 Total 1,518,155 1,094,418 1,026, , ,632 1,039, , , ,313-60,582

6 Provisional Statistics on Hong Kong Long Term Insurance Business New Business (cumulative for the year) Class of Business Sum Assured Premiums/Contributions (HK$'000) No of Policies No of Lives (HK$'000) Annualized Single Transferred A - Individual life 323, ,366,207 2,461,808 80,035 0 A - Individual annuity A - Group life and annuity (non-employer group) 96 26,129 5,024,336 8,550 1,874 0 B - Marriage and birth 602 4, C - Linked long term 828,752 1,020,695 0 D - Permanent health 19, , E - Tontines F - Capital redemption G - Retirement scheme management category I , ,686 7, ,775 H - Retirement scheme management category II I - Retirement scheme management category III 1, ,717 16,606,202 93, Total 345, , ,996,745 3,778,900 1,110, ,594

7 Summary on January - June 2000 Provisional Statistics Hong Kong Insurance Business Highlights Jan-Jun Jan-Jun Growth ($ m) ($ m) General Business Gross Premiums 8,950 8, % Net Premiums 6,201 6, % Underwriting Profit/(Loss) % Long Term Business (New Business) Office Premiums (Total) 5,813 5, % Office Premiums (Individual Life Business) 4,396 4, % General Business Gross Premiums Net Premiums Jan-Jun Jan-Jun Growth Jan-Jun Jan-Jun Growth Class of Business ($ m) ($ m) ($ m) ($ m) Accident & Health 1,999 1, % 1,601 1, % Motor Vehicle 1,329 1, % 1,097 1, % Goods in Transit % % Property Damage 2,259 2, % 1,281 1, % General Liability 1,897 1, % 1,286 1, % Others % % Total 8,950 8, % 6,201 6, % Long Term Business (New Business) Office Premiums Jan-Jun Jan-Jun Growth Class of Business ($ m) ($ m) Individual Life (Non-Linked) 2,547 2, % Individual Life (Linked) 1,849 1, % Group Life and Annuity % Retirement Scheme 1, % Others % Total 5,813 5, %