Bupa use a more thorough method of calculating premiums according to each individual year of age, ensuring that each client will pay the appropriate amount for their specific age.
Hong Kong (PRWEB) February 27, 2013
Pacific Prime clients attached to Bupa’s Worldwide Health Options plan will see an increase in Outpatient insurance costs in April after the insurer has announced the first of their bi-annual rate adjustments for 2013.
Premium rates have been adjusted across all plans but clients who have selected the Medical Plus module, which refers to outpatient consultations, will see an increase of around 50% higher than the rest of Bupa’s individual plans. This targeted increase is unfortunate for clients requiring the specific benefits related to the outpatient module, but for those who do not have this option as part of their plan, this will ensure that their premiums remain steady.
Pacific Prime clients partnered with Bupa should note that their insurer is unique in that, regarding their premium calculations, Bupa draws on complex data analysis to make targeted alterations to their premiums. Insurance companies will generally use wide parameters when analysing their claims history but Bupa include exceptionally detailed specifics regarding age, location, excess levels and plan module type.
Furthermore, another feature rarely found among insurers is Bupa’s method of pricing without the use of wide age brackets. Many insurers tend to adjust premiums according to age brackets of around 5 years, making for a more straightforward way to calculate adjustments. However, this can result in clients experiencing dramatic increases when they make a jump to a new age bracket and therefore have to compensate for those in the older end of their specific bracket. To make premium adjustments as affordable for their clients as possible, Bupa use a more thorough method of calculating premiums according to each individual year of age, ensuring that each client will pay the appropriate amount for their specific age and will not experience such a drastic increase upon reaching a new year.
Pacific Prime clients should be pleased that Bupa’s modular plan designs themselves also help to keep annual adjustments fair. Many insurers include basic benefits such as dental, medicine/equipment and annual health checks into one plan module. Bupa separates these into several separate modules which clients can choose to include or not. Each modules performance is analysed individually and impact premiums independently meaning that, if a client has not selected a certain module, their overall premiums will not increase even if treatment costs within that module have risen.
These methods have allowed Bupa to maintain relatively steady premium increases over recent years and while it is unfortunate for clients attached to outpatient consultation modules, it is expected that the second release of premium adjustments for this year will be minimal.