Companies facing higher insurance premiums


SINGAPORE: Businesses are now forking out higher premiums for some insurance policies, with those more exposed to the pandemic bearing the brunt of the impact.

Insurers told The Straits Times that premiums for several business insurance plans have risen due to Covid-19 risks, private hospital usage and medical inflation.

Great Eastern said the premiums for certain classes of insurance have risen by up to 30%, or these policies might have had a reduced sum insured and limit of liability. These include work injury compensation, public liability and professional indemnity.

“Industries most impacted are those whose employees have higher exposure to Covid-19, for example, where employees have interaction with people serving SHN (stay-home notice) or quarantine, ” it added. Some examples could include firms in the hospitality and construction sectors.

An Aviva spokesman said premiums for business insurance have been rising, with the group health portfolio accounting for most of the increase.

“With medical inflation and overconsumption, healthcare costs have been rising, which impacted the underwriting performance of the portfolio as the amount of claims paid out exceeds the amount that we have priced for.”

“Industries most impacted are those whose employees have higher exposure to Covid-19, for example, where employees have interaction with people serving SHN (stay-home notice) or quarantine, ” it added. Some examples could include firms in the hospitality and construction sectors.

An Aviva spokesman said premiums for business insurance have been rising, with the group health portfolio accounting for most of the increase.

“With medical inflation and overconsumption, healthcare costs have been rising, which impacted the underwriting performance of the portfolio as the amount of claims paid out exceeds the amount that we have priced for.”

Loo has observed that many small and medium-sized enterprises in the construction sector face difficulty proceeding with their projects “as they are unable to afford the higher premiums arising from a greater perceived risk of default”.

Apart from premiums, the pandemic has also changed the way insurers are doing business.

Most already provide Covid-19 support through measures such as relief funds, coverage and cash benefits for hospitalisation due to the virus and vaccination side effects.

Insurers such as AXA and Income also offer Covid-19 coverage with their travel insurance.

Although travel remains limited, AXA said it expects the take-up of travel insurance to be higher in the future due to greater awareness about the need to be protected against Covid-19 while travelling. — The Straits Times/ANN

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

Budget 2022: MAHB seeks incentives to restore air connectivity
Touch ‘n Go eWallet launches DuitNow transfer
Hong Kong’s IPO market withers as billion-dollar listings lapse
Netflix estimates ‘Squid Game’ will be worth US$900m
Down Is still up for foreign investors piling into China
More opportunities under 12th Malaysia Plan, gig economy to benefit
Second phase of London's Battersea Power Station to be opened to public next year
CPO futures seen trading higher next week on improved sentiment, may hit RM5,050
US to lift restrictions Nov 8 for vaccinated foreign travelers
China aluminium firm Zhongwang flags 'severe difficulties' at subsidiaries

Others Also Read


Vouchers