Why do insurance companies provide free coverage for covid-19?

Hi Marcus,

I think it's free to some extend, but those who do enjoy that benefit will definitely have to be the insurers' clients first. And why this is done, it's because everyone of us have felt the effects of the current situation.

Businesses haven't been doing well due to the drop in people going out, and with the drop in tourism, many businesses have been affected. And to help everyone, I believe insurers are doing what they can to help by waiving premiums, and even extending hospital cash in the event clients or their family members are hospitalised.

From what I'm seeing, investors and even the government are also stepping in to help with the current situation, so really it's a period where it's SGunited. Hoping we go through this period as a nation and come out stronger together.

I do not believe it is free in some instances. They are simply following their contractual obligations as stipulated by the policy terms. (People with hospitalization policies)

The Covid virus is similar to a case of dengue, where admission to hospitalization will be covered by hospitalization insurance.

Yes, there is some support from most insurance companies at some length, but to call it wholly "free" is not precise. In most cases, they need to be clients first before benefits can be disbursed.

From an actuarial standpoint, the percentage rate of hospitalization is low enough to provide it as well.

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