SINGAPORE - Civil servant Germaine Wong spends about $10,000 a year on Integrated Shield Plan premiums for herself and five other members of her family.
Mrs Wong, 46, is pleased to have chosen Prudential because since 2017, when all her plans were converted into claim-based policies, she has been enjoying the 20 per cent no-claim discounts on her total premiums annually.
"As all of us are in good health. We have saved close to $10,000 in premiums as this year will be the fifth anniversary of our no-claim status," says Mrs Wong, who works in a statutory board.
Like her, most if not all Prudential customers are aware of the benefits of staying healthy because this is the main message the insurer has been communicating since these policies were offered.
Prudential noted that over 80 per cent of its customers enjoy such no-claim discounts.
But some are still unfamiliar with the insurer's five tiers of premium pricing that is determined by the customer's choice of hospital because they have never made a claim before.
When this was explained to Mrs Wong, she initially expressed surprise that the premium can go up by 100 per cent if the patient chooses to be treated at a non-preferred private hospital.
But after doing a quick calculation, she concludes: "I think it is still worth it. Using our example, I have already gained a 100 per cent discount so far. Even if I have to pay a 100 per cent increase in premium due to my choice of hospital, it is alright to pay what I have gained back to the insurer."
Moreover, she says, she is not without choice: If she seeks treatment at the insurer's panel of private hospitals - Mount Alvernia and Raffles hospitals - her premium increase will be only 40 per cent. And if she stays healthy in the following year, her premium will go down and she will also be able to enjoy her discounts.
"But I do hope that Prudential will increase the no-claim discounts for those who stay healthy for more than five years to reward good customers like us," she adds.
Fellow Prudential customer Y. H. Sim, who heads her retail company's marketing team, feels that while the 100 per cent premium hike is a bit steep, it is "a fair move" because insurance costs will go up if everyone were to go to private hospitals that charge substantially higher fees than other hospitals.
"I think it is fair to give an option to customers. If I don't go to hospitals that are known to be expensive, my premium remains low," notes Ms Sim, 49.
"Similarly, those who go to such hospitals should pay higher premiums so that the extra costs don't get passed on to those who don't. It is just like shopping - your expenses will depend on what you choose to buy."
Five policyholders of AIA and Great Eastern (GE) interviewed by Invest say they will wait and see as such policies were just introduced this year.
Mr Francis Ng, 52, a senior vice-president of a bank, says he is disappointed that AIA does not have a private hospital panel like Prudential but notes that he can switch to another non-claim-based policy it offers.
"I will be meeting my agent to discuss which policy is better," he says.
GE customer Sharon Lim, who is in her 40s, hopes that insurers will spend more effort educating customers on why they have introduced claim-based policies.
She says: "We know this has something to do with high healthcare costs.
"All the more they should explain how this can benefit the customers so that they don't get shocked by sudden jumps in their premiums."
The other three insurers - Aviva, AXA and Income - have no plan to launch such policies. But next year, Aviva will introduce a reward scheme that will reduce their customers' premiums by 15 per cent if they stay healthy.
SINGAPORE - Civil servant Germaine Wong spends about $10,000 a year on Integrated Shield Plan premiums for herself and five other members of her family.
Mrs Wong, 46, is pleased to have chosen Prudential because since 2017, when all her plans were converted into claim-based policies, she has been enjoying the 20 per cent no-claim discounts on her total premiums annually.
"As all of us are in good health. We have saved close to $10,000 in premiums as this year will be the fifth anniversary of our no-claim status," says Mrs Wong, who works in a statutory board.
Like her, most if not all Prudential customers are aware of the benefits of staying healthy because this is the main message the insurer has been communicating since these policies were offered.
Prudential noted that over 80 per cent of its customers enjoy such no-claim discounts.
But some are still unfamiliar with the insurer's five tiers of premium pricing that is determined by the customer's choice of hospital because they have never made a claim before.
When this was explained to Mrs Wong, she initially expressed surprise that the premium can go up by 100 per cent if the patient chooses to be treated at a non-preferred private hospital.
But after doing a quick calculation, she concludes: "I think it is still worth it. Using our example, I have already gained a 100 per cent discount so far. Even if I have to pay a 100 per cent increase in premium due to my choice of hospital, it is alright to pay what I have gained back to the insurer."
Moreover, she says, she is not without choice: If she seeks treatment at the insurer's panel of private hospitals - Mount Alvernia and Raffles hospitals - her premium increase will be only 40 per cent. And if she stays healthy in the following year, her premium will go down and she will also be able to enjoy her discounts.
"But I do hope that Prudential will increase the no-claim discounts for those who stay healthy for more than five years to reward good customers like us," she adds.
Fellow Prudential customer Y. H. Sim, who heads her retail company's marketing team, feels that while the 100 per cent premium hike is a bit steep, it is "a fair move" because insurance costs will go up if everyone were to go to private hospitals that charge substantially higher fees than other hospitals.
"I think it is fair to give an option to customers. If I don't go to hospitals that are known to be expensive, my premium remains low," notes Ms Sim, 49.
"Similarly, those who go to such hospitals should pay higher premiums so that the extra costs don't get passed on to those who don't. It is just like shopping - your expenses will depend on what you choose to buy."
Five policyholders of AIA and Great Eastern (GE) interviewed by Invest say they will wait and see as such policies were just introduced this year.
Mr Francis Ng, 52, a senior vice-president of a bank, says he is disappointed that AIA does not have a private hospital panel like Prudential but notes that he can switch to another non-claim-based policy it offers.
"I will be meeting my agent to discuss which policy is better," he says.
GE customer Sharon Lim, who is in her 40s, hopes that insurers will spend more effort educating customers on why they have introduced claim-based policies.
She says: "We know this has something to do with high healthcare costs.
"All the more they should explain how this can benefit the customers so that they don't get shocked by sudden jumps in their premiums."
The other three insurers - Aviva, AXA and Income - have no plan to launch such policies. But next year, Aviva will introduce a reward scheme that will reduce their customers' premiums by 15 per cent if they stay healthy.