Compliance is of increasing importance as regulators around the world become more aware of high end medical plans sold from overseas to their locally based residence
Hong Kong (PRWEB) December 19, 2012
Pacific Prime has been working closely with Nordic Health Care since 2009 and has carefully monitored their premium increase rates over the years. While Nordic's plans have typically been considered amongst the best in the current market, premium rates for 2013 have been announced and will increase by 15 percent.
This increase is above Nordic's previous years average, as well as around 40 percent higher than the premium increase rates released by numerous insurers so far in 2012.
Pacific Prime clients applying for a Nordic Health Care policy, or renewing their previous one will both be subjected to the same 15 percent increase.
It is important to note that it is typical for insurers to exclude the impact of age bracket increases in their increase rate percentage. However, Nordic Health Care is unique in that policyholders remain in the same age bracket throughout their policy lifetime and age does not affect premium increases. In this respect, as age typically accounts for increases of around 3 percent on the average premium each year, the latest increase from Nordic could actually be positioned at 12 percent rather than 15.
However, this is still a high rate in comparison to other insurers. Pacific Prime believes that these latest increases are down to the rich plan benefits that accompany a Nordic Health Care plan. Furthermore, Nordic has historically always been very accepting of clients with pre-existing health conditions (in return for a premium loading) and while this makes for an attractive plan, it has undoubtedly impacted the loss ratio of the entire portfolio.
2012 saw other changes for Nordic Health Care and Pacific Prime customers based in Latin America will no longer be able to apply for a policy (policy renewals will continue to be honored). Nordic is also withdrawing from many of its other global markets as it seeks to focus its attention in Europe. At the moment, policy renewals in all locations do not seem to have been impacted by these latest changes, only new business.
Neil Raymond, CEO of Pacific Prime commented: “Compliance is of increasing importance as regulators around the world become more aware of high end medical plans sold from overseas to their locally based residence…Insurers are finding the need to regularly readjust their position of where they can sell to and where they cannot. Nordic's current position here is by no means unusual”
On a final note, as from next year, all Pacific Prime clients paired with a Nordic policy outside of the EEA will be levied a 1.1 percent tax on their premium. This appears to be specific to Danish tax regulations but may be the norm in the future as European governments seek to improve their delicate financial situations.