Claim Rates and Development of Critical Illness in East Asia

There had been various causes of critical illness incritical illness claims out of nearly 203,994 policies
East Asia. As in other countries, probably thecould have been made. On the other hand, for
most common cause for critical illness in East Asiarider policies, about 185 claims out of 292,806
can be considered as cancer. A critical illness suchpolicies could have been made by men. Concerning
as cancer may have brought around 77 percentwomen, about 238 critical illness claims out of
of claims concerning men as in other Asian304,644 policies could have been made. Roughly,
markets. Furthermore, heart attack and renalthe claim rate for riders may be around 0.708 and
failure may have brought a handful of casualtiesfor main policies the critical illness claims rate may
with only around 7 percent of claims each.be around 0.915. The low claims rates for riders
Moreover, 5 percent of men had claimed foras compared to that of main policies may even
other critical illness conditions while 4 percent hadbe shown by age groups.
claimed for stroke. On the other hand, 89 percentFurthermore, according to Liu SY, 2000, for a
of women had claimed for a critical illness such ascompany to be able to compete effectively in the
cancer. If we compare the result to that of men,critical illness insurance market may depend on the
the effect is seen to be more aggressivenumber of diseases it covers. In Hong Kong,
concerning women. Also, around 7 percent ofSingapore and Malaysia most policies may cover
women had claimed for renal failure followed by 1up to 36 critical illness conditions. Also, more than
percent for other critical illness conditions, 250 different illnesses may have been offered as
percent for stroke and finally 1 percent for abenefit triggers. However, the authorities in
critical illness such as heart attack.Taiwan have only accepted seven critical illness
According to Munich Re, 2000, the acceleratedconditions. Many companies may cover seven
plans may have been lesser exposed to criticalmajor diseases. These can be considered as:
illness risks than the standalone critical illnesscancer, stroke, heart attack, kidney failure,
policies. Therefore, a study about the critical illnesscoronary artery bypass surgery, paralysis and
claims rates concerning rider policies may havemajor organ transplant. The other remaining
been less informative than the main policies. Thecritical illnesses may be offered by most
reason may be because main policies could becompanies.
higher in number. It had however been noted thatMany companies add additional benefits besides
critical illness claims for riders may have beentheir original critical illness plans. These benefits
lower than that of main policies. Let’s have amay not be found in the policy. For example,
look.apart from covering frequent critical illnesses like
For men insured under the main critical illnessencephalitis and meningitis, many policies may also
policy, around 736 claims out of nearly 935,563add terminal illness as benefit trigger. By doing this,
policies could have been made. As for womena better marketing for a more valuable critical
with the same type of policy, approximately 949illness related product can be done.