The health insurance market should switch to a personalised premium calculation system that prices medical coverage according to the traits of the insured, according to Mr Resit Cakas, chairman of the Insurance Agents Association (SAB).
He said that health insurance policyholders are affected by similar increases in premium rates under a tariff system which has been largely unchanged for nearly 30 years in almost every insurance company, according to a report in Insurance Gazette.
Recently, some insurance companies have introduced some innovations by diversifying their products. But the essence remains the same. That is to say, all health insurers set a standard pricing according to age group. Premium increases are applied equally to all the insured.
In addition, he said that health insurers suffer technical losses despite hikes in premiums.
Mr Cakas proposed several recommendations for the insured to be charged affordable prices and for insurance companies to post technical profits:
- Current health insurance tariffs should be urgently reviewed. Instead of setting the same premium rates for each person of the same age group, special conditions, habits, nature of jobs, as well as the province and district of residence of each insured person can be thoroughly analysed and pricing adjusted accordingly. For example, an office worker should not pay the same premium as a policyholder with a more risky job.
- Insurance policies should be priced according to coverage for diseases. Thus, premiums should be lower for those who are not covered for certain illnesses.
- The levels and frequency of claims made by a policyholder should be reviewed, and the insurance cover priced accordingly.
- Special hospital agreements should be reviewed. In particular, insurance companies should strengthen cooperation with medical institutions during the healthcare provision phase.