HONG KONG, Aug. 22, 2012 /PRNewswire/ -- Globalsurance has announced results of the company's first annual International Insurance Review.
Globalsurance conducted a study to determine the rates of premium inflation within the International Private Medical Insurance (iPMI) industry. Using 7,916 data points from 8 leading International Insurance providers across a 5 year period, Globalsurance can reveal that iPMI premiums are increasing at an average rate of 10.8 percent per year around the world.
Pricing data included 10 selected countries in Asia, the Middle East, Europe, South America and Africa, and the following insurance providers: Allianz, AETNA, IHI, InterGlobal, AXA PPP, William Russell, DKV Globality, and BUPA.
The highest levels of iPMI premium inflation occur in Hong Kong at an average 12.7 percent per year; the lowest countries for iPMI premium inflation are Kenya and the Philippines, at 9.6 percent per year and 9.4 percent per year respectively.
In terms of the individual insurance company with the highest premium increases over the 5 year average, it is IHI at an average 13 percent per year, with AETNA coming second having levied annual average premium increases of roughly 11.9 percent.
With total average increases of iPMI premiums currently standing at 10.8 percent per year it is seen that the cost of international medical insurance policies are increasing faster than the wages of the global expatriates and High Net-Worths these plans are intended to serve. This brings into question the sustainability of these premium increases over the long term.
Globalsurance believes that the premium inflation levels being seen are due to 1) increased demand over available supply pushing up the cost of healthcare, because of the growth of expatriate and High Net-Worth populations around the world seeking superior medical treatment services. 2) iPMI products themselves contributing to higher premium pricing through high coverage levels which in turn allow healthcare providers to charge higher rates for their services. 3) The ability of policyholders to seek treatment outside of their otherwise low cost countries, and the fact that these policyholders are increasingly traveling to more expensive countries for their healthcare.
The full study contains insurance company and country analysis on the global premium increases currently being seen within the iPMI industry and is available for free on Globalsurance's website at Globalsurance.com/blog.