prices up ten percent
Expenses and guaranteed renewability
of contracts provokes the increase
The prices of medical insurance policies have increased around ten percent this year. The price rise is due to the implementation of guaranteed renewability of medical insurance contracts (GR), and to the increase in medical expenses, according to Fateh Bekdache, Vice Chairman and General Manager of Arope Insurance.
This GR decision triggered a four percent increase of medical insurance premiums, according to Bekdache.
The decision also affected the underwriting of new medical insurance policies. “We are stricter in assessing the risk associated with providing health insurance coverage following the GR decision,” said Raed Labaki, Head of Bancassurance and Market Management at Allianz SNA.
The Insurance Control Commission (ICC) has enforced the guaranteed renewability of all medical insurance contracts for the entire life of the insured in April 2018.
The provision states that general and special provisions of medical insurance contracts cannot be amended after the first underwriting of the insured person, following an observation period of six months.
ICC has named 16 insurance companies and their medical insurance products which have been reviewed and obtained the pre-approval on their general conditions, in compliance with the guaranteed renewability of medical insurance decision.
Reported by Gisele Khalaf
Date Posted: Oct 05, 2018