Why has the premium of shield plan increase by 50%? Is this normal?

Hi Anon,

Yes, this has been happening for premiums on shield plans due to claims and also almost every insurer has only experience losses due to claims done by the insured.

Of course we will feel the pinch, because it would feel like we are paying more for something that we did not use or claim from. However if we are under the old policy and the old rider where we are entitled to 100% claims, I do honestly think we should keep that policy, as insurance is actually more protective, and in regards to medical bills, we definitely want to have more than sufficient protection for ourselves individually

Yes. For the last 3 years, all insurance companies have been increasing the premium for their private integrated shield plan as well as riders.

This is largely because of high medical bills due to the "buffet" syndrome where some policyholders and doctor abuse the 100% coverage that is being provided by insurers. Not only that, the medical inflation has went up 10% this year.

Thus, the reason why the government stepped in to remove the 100% coverage and reduced it to 95% coverage instead. If you're holding on to the old plan, please speak to your financial consultant before thinking of switching or downgrading as you may not be able to enjoy the 100% coverage if you were previously on it.