Sunday, September 20, 2009

Health insurance products make a comeback


Stumbled upon a series of AIA one-paged poster on the Straits Times a week ago. Followed by other scream-in-your-face series by HSBC and NTUC Income (today), if I remember correctly.

A sign of market revival in health insurance products?

Following the collapse of AIG due to the financial downturn, Great Eastern has become the top player locally. I would think this means GE has the greatest market share; hence the almost ubiquitous ads on double-decked buses.

My take is that there will be a gradual surge in life/health insurance products selling in time to come. But whether or not this is done in compliance with MAS or Life Insurance Association's (LIA) guidelines, and in compliance with the Insurance Act, is another story.

You shall hear more from your colleagues, friends, relatives and/or indirect contacts of your personal network who are all insurance agents.

Photo captured from The Straits Times, 14 Sept 2009
.

24 comments:

Calvin said...

Right now I do not haf a health insurance except for a life one from Aviva. It'll be interesting to see how the agents convince me to sign up for one. Will they be able to explain to me in laymsn's term? Or will I be left be in a pool of muddle.. ;)

Jessica said...

That's a good one Calvin! Most of the time I don't know what they are talking about. I have a feeling some agents themselves do not know what they are saying too...hmm, talking about regulation...

Raphael said...

From I understand from my friends in the insurance industry, companies do not earn much from Health insurance, but rather, such policies act as a 'carrot' to recruit new members into signing up other policies as well.

I'm not sure how true this is, but seriously, looking at the payouts and the premiums, one wonders what these companies earned.

And of course, some may argue that such policies always come with font size 5 disclaimer which says Insurers reserved the rights to make any amendments deemed necessary.

Ruth said...

I think it is good that such policies are making a comeback. Many of the patients we see are not adequately covered, especially the old and these problems are particularly serious when their children are unable to foot their bills.

So in my opinion, I welcome such hypes in the health insurance.

Josh said...

I agree with Ruth, remember I mentioned in my previous comments that I used to act as caregivers to some patients? SOme seriously lack adequate cover and when the CPF runs dry (Some don't even have CPF to start off with), without helath insurance is spells doom for the patients especially if they do not have children to support them.

And like what Ruth mentioned, some have children who just wouldnt pay for their parents' hospitalization bills.

I have even heard of people disowning their parents lawfully so they can wipe their hands off those bills.

How sad!

poon said...

tx for this post is relevant to my work. to correct, the advising and selling of health insurance prodts still went on during the financial downturn and some advisors even saw peaks in personal targets. I understand insurance advisory as a social stigma, but not all agents misadvise or are unscrupulous as most people are led to belief. there ARE credible and reliable ones & I, for one, have repeat clients and many referrals.

i choose to be an advisor (not just on insurance policies), not because the job market is poor but bec it's a fulfilling and rewarding career for me. i'm an Hons grad from NUS btw ;-D

also, there are differences betweeen health & life insurance. Health insurance can mean group term life (for corporations & even travel) and life insurance involves ILPs, coverage of DBs, critical illnesses & temporary/perm disabilities, so on and so forth.

May said...

Oh, Great Eastern is organising a Health Carnival at Suntec City from 17 -20 Sep. If anyone of you is going, perhaps can share with us how they explain their policies to us?

Suish said...

Ah-ha..yes..it's on the front page of the TODAY newspaper today.. They have launched a major new regional advertising campaign known as 'We are ASIA' on 9th Sep. To read more: http://www.aia.com.sg/document/AIA-We%20Are%20Asia%20media%20release-9Sep09.pdf

Keith said...

I just got a call from my insurance agent that my family is not insured under this 'Eldershield' scheme which the government has allowed her citizens to purchase using their respective CPF. And when asked about the details, it seems like we have bought similar plans but then again, it feels like the other plan does not cover as certain aspects.

Different companies are offering different products and with overlapping schemes and makeing things worst by its font size 5 disclaimers.

Perhaps polices should be regulated in a way where there is no overlapping?

Anyone agree with me??

Josh said...

To top up what Keith has mentioned, I know of people who unconsciously bought multiple plans which turn out to insure similar events, such as health, accidental, terminal illness, etc, and where claims are concerned, run in many many porblems. Some say they need the original receipts, some say they need this document, that document, at the end of the day, what is supposed to aid the distress family out of the financial burden, turned out to add more stress to the already flustered and anxious family.

So much for paying for your insurance and for that matter, dutifully.

Ruth said...

There are currently independent insurance providers which compares policies in-house and make the best match for a Client's needs, such as IPP and Fin-exis.

Perhaps this might help those, for a start, who is lost and confused over the many policies the market now offers.

But only time can tell if whether this will be a solution to the problems raised.

May said...

The advertisements are everywhere... it's at the bus-stops, newspapers, tv..... As what Suish said, it's their regional advertising campaign. I personally feel that it's influential to the viewers, I will have the urge to want to know more. So what you guys think of this campaign?

Jessica said...

In response to what May has said, my sediments are that it will influence us to certain extend, perhaps some may even call the insurance agenct up right after the advertisement, espcially those motivated by fear, etc.

Mr K.K Lee said...

I may not totally agree with what May has said. Here's why:

I am currently reading the book titled "Tipping Point" by Malcom Gladwell. In his book, he mentioned about the market being bombarded with loads of advertisement. It was reported that although Coca-Cola sponsered the 1992 Olympics, less than a quarter surveyed actually knew Coca-Cola sponsered the event, so much for spending US$33 Million on advertisements. This goes to show that although these regional advertisements are being rolled out spontaneously, people may not be receptive to it.

In the book, Galdwell also mentioned about the stickiness effect, meaning how effective does a message stick to your brain once you receive it? Advertisements, it was said, takes about 6 views to be recalled and according to a research, if there were there 15 seconds advertisement within a 2.5 minute framework, chances are, none will be remembered at the end.

In response to May's comments, I can only say such advertisements is more a clutter than anything else.

Mr K.K Lee said...

Apologies, Correction from the previous posting (Please see CAPS):

"if there were THREE 15 seconds advertisement within a 2.5 minute framework, chances are, none will be remembered at the end."

Saffe said...

haha...I agree with Mr Lee too, it's sometimes quite 'irritating' to see all these advertisements around.. Coz I feel that I will only go and approach them if I feel there's a need and when it's necessary. Enough is enough.. I also have to excuse myself politely each time i pass by their booths or roadshows in MRT stations or bus interchange!!
Perhaps we should voice out to these agents to let them know that we'll contact them when it's necessary. That's my view, thanx

Keith said...

Yes, Saffe, exactly, who cares about the advertisements when all of us are dozing off in the morning train and cannot wait to run home in the evening?

Thanks to Marketers and advertisements, we are experiencing the Advertisement Overload Syndrome (AOS), if there is ever anyone who coins it...

TKL said...

I haf a health insurance since 2004. When I signed up then, I din really read the fine print and trust my agent will do the job fine.. When I was hospitalised in 2007 for a heart attack, lo and beholod! I had so much trouble trying to make claims, I almost had a second one!

Raphael said...

The Sunday Times splashed a section on changes made to the insurance industry.

Try to get your hands on a copy!

Mr K.K Lee said...

Read the article this morning in the Sunday Times, now that you can make amendments to the nomination of your respective insurance, perhaps this is also a way that you can award the caregivers if, towards the end of your life, there leaves no immediate loved ones to care for you.

Keith said...

I think the move was a good one by the Singapore government to amend the insurance nomination law, now that healthcare and insurance are in the limelight again, as evident by the US's healthcare reforms.

Hospitalization insurance aside (since it only takes care of the bills), the change in the nomination of the beneficiaries to policies spells some positive moves made to the insurance industry.

Clinton said...

I disagree with this particular post as it might be possible that as much as advertisements are placed on newspaper, it could simply mean that these companies are unable to draw in business from other sources.

Jessica said...

Yes, exactly, i agree with what Clinton has said. Advertisement has been a way marketers used to create a need, rather than fufill a need.

Sociologists will tell you that the world has come a long way in tagging a price to One's life with the advert of insurance policies. And the fact that insurance policies were first rejected and received poorly on its initial days, would one day be advertised and promoted with regal, seems just too absurb.

To fulfil the need for utility, perhaps, one would argue that the advert of policies and its accompanied advertisements should and must be propagated.

Alfred said...

Hello, did you read the papers today? In TODAY, the particular advertisment in the post score with the best ad of Sep. AIA and Fairprice score with clean visuals and messages. The advertisements have brought the clear message across and brought many attention to it.. Wow..