Singapore is a leading international private medical insurance (IPMI) market in Asia, and like much of the rest of the world it has been facing a rapidly changing environment, from the post-Covid bounce back, changing regulations, the management of costs and the rise of artificial intelligence (AI).
How Singapore handles this changing environment will mark the way forward not just for its own dynamic market, but for many other countries across the region.
It can therefore show how the industry will develop in countries such as Thailand, Malaysia, Indonesia and Vietnam.
The Monetary Authority of Singapore (MAS) has been a key driver with its regulatory changes, including an anti-co-mingling policy which aims to ensure insurers focus on their core business.
As a result insurers are generally prohibited from business other than insurance and that applies to brokers as well.
But according to Aniz Sirajudin, regional IPMI leader at Mercer Marsh Benefits (MMB) in Singapore, the MAS has gone even further.
“Additionally, MAS has revised expectations regarding the notification of data breaches by licensed insurers, emphasising the importance of data protection in the insurance industry,“ he says.
“This reflects a growing focus on regulatory compliance and consumer protection, which could lead to stricter requirements for insurance coverage and operational issues.”
Change in benefits limit
But there have been other regulatory changes outside of MAS as well which have had a knock-on effect on coverage and premiums.
One such change has come from the Ministry of Manpower (MOM), specific to the Foreign Workers’ Medical Insurance, increasing the minimum annual insurance coverage from S$15,000 to S$60,000 per worker.
Andrew Teo, country lead, accident and health underwriting for QBE Singapore says: “Accordingly, QBE has changed our foreign workers’ medical insurance minimum benefit limit to a S$60,000 sum insured, and implemented a simplified age banding differentiated premium to be in line with next year’s regulations.”
There has also been an impact on insurance coverage following the October announcement from the Ministry of Health (MOH) seeking to enhance the Medishield Life Scheme to better protect Singaporeans against major health episodes that might result in large medical bills – thus enabling Singaporeans to afford new types of care and treatments.
Teo says: “To support these enhancements, premiums will be increased over three years from April 2025, and there will be support from the government in terms of top-ups and premium subsidies.
“For the majority of Singaporeans, these additional top-ups, subsidies and support will help to offset the premium increases over the next few years.
“Once new types of healthcare become more affordable, we may expect health insurers to re-look at offering wider coverage and/or higher limits,“ he adds.
Blooming hybrids
Another growing trend is the rise of hybrid IPMI products, which were first reported by Health & Protection last year.
While not all providers are offering hybrid IPMI in Singapore yet, the trend which started in Hong Kong is starting to bloom and is looking to spread outside of the city-state.
Hybrid IPMI offers a balance between affordability and extensive coverage, though not matching the full extent of full-fat IPMI coverage.
Jacklyn Tan, director of regional employee benefits in Asia for Howden Group says there has been an increase in the interest around hybrid IPMI as costs increase for standard plans.
“We see employers reducing costs by lowering plans or imposing co-payments with the rising IPMI premium rating year-on-year,“ she says.
“Some have even opted for a hybrid IPMI product or local plan. So, there is clearly a rise of hybrid IPMI products or plan designs.”
Market gap
MMB’s Sirajudin agrees and says: “There is certainly a need for this product to fill a market gap.
“With a limited number of providers in this space, there will be significant demand due to several reasons, including the need for comprehensive coverage.
“Hybrid IPMI products typically offer a balance between affordability and extensive coverage. They provide access to a wide range of medical services, including hospitalisation, outpatient care, specialist consultations, and emergency services.
“This comprehensive coverage is essential for individuals who may require medical attention in different countries or regions.”
And Sirajudin also agrees that cost-effectiveness is a key driver while the focus on preventive care is another positive aspect.
“While hybrid IPMI products may not offer the same level of coverage as premium plans, they provide a cost-effective solution for individuals or groups seeking quality healthcare without the high premiums associated with top-tier plans,“ he continues.
“This makes them an attractive option for those who want reliable health insurance without breaking the bank.
“Many hybrid IPMI products also emphasise preventive care and wellness services, encouraging policyholders to engage in healthy behaviours.
“This focus can lead to better health outcomes and reduced healthcare costs over time, as individuals are more likely to seek preventive services rather than waiting for serious health issues to arise.”
Greater affordability
AIA Singapore has also seen a push for greater affordability, which means exploring options outside the established premium IPMI product.
Kenneth Tan, chief of corporate solutions at AIA Singapore said: “With the return of business travel, companies are looking for the best ways to support the health and wellness of their employees to ensure they are adequately covered – all while managing global recessional trends and inflationary pressures.“
He notes that AIA has delved into hybrid solutions to help contain costs.
“Our newly revamped product seeks to address the demand for high-end IPMI coverage that leverages hybrid IPMI offerings to be inclusive for the workforce,“ he says.
“This entails lower limits starting from half-a-million dollars, making such coverage for all employees more affordable for companies.”
Tan also notes that with Covid-19 new working patterns emerged including remote and hybrid working, adding that insurers must adapt and respond to these changes quickly to stay relevant.
Value-added healthcare benefits
But hybrid IPMI is not the only developing trend.
Tan notes there is a growing demand for value-added healthcare benefits.
He says: “Employees today are more inclined to prioritise companies that help support their wellbeing and businesses that actively do so reap valuable rewards.
“In essence, expat insurance goes beyond basic healthcare. It’s a safety net and an investment in employee wellbeing and productivity in a globalised workforce.”
AI an increasing force
Unsurprisingly, with the rapid growth of AI globally the technology is also making its mark on healthcare in Singapore.
“In Singapore, we observed that AI is becoming an increasing force in healthcare, such as providing first-level diagnoses and personalised medicines,“ QBE’s Teo explains.
“From an insurer’s perspective, AI may be able to have a transformative impact on employer-sponsored healthcare costs in the future, but the level of impact remains to be explored.”
One of the first local AI developments for QBE happened just a few months ago.
Teo says: “In June a generative AI solution launched to workers’ compensation underwriters in Hong Kong and Singapore to support the underwriters’ review of submissions.”
But more change is likely to come, as QBE has been introducing AI further afield as well in other underwriting segments.
Teo continues: “On a global basis, QBE has implemented a new generative artificial intelligence solution and is scaling this new technology across our operations.
“QBE launched its first solution in December 2023, the Cyber Underwriting AI Assistant, for underwriters in North America which assists cyber underwriters in reviewing broker submissions more quickly and this is now also in Europe.”
Telemedicine
Meanwhile, telemedicine is also increasing all across the globe, particularly since the Covid pandemic, and Singapore is no exception.
Teo highlights that it has many benefits: “Broadly, telemedicine supports wider access as compared to traditional consultation methods and helps to improve the affordability of private healthcare services.
“Digital health benefits are now a part of the usual plan of modernisation, with telemedicine services becoming a standard in health insurers’ product offerings.”
He notes that QBE offers telemedicine services as part of its outpatient benefit under the group medical plan, with the services facilitated by a third-party medical service provider.
All in all, it is vital for advisers and insurers in Singapore to keep apace with the changes that are happening around them
The changing working patterns and travel routines mean products must be designed, underwritten and sold differently.
“It is more crucial than ever for insurers today to have their finger on the pulse and offer flexible and comprehensive solutions that cater to the fast-evolving and wide array of needs of employers and employees,“ AIA’s Tan concludes.
