Data from the 2013 International Insurance Review shows inflation rates stabilising.
Globalsurance has released the results of the 2013 International Private Medical Insurance Review, a study of insurance premium inflation trends in the international private medical insurance (iPMI) industry.
The study looks at data gathered over the past five years and found the average regional inflation rates for all areas and insurers included in the report. The average per year for South-east Asia is 10.2%, 9.3% for the Middle East, and 9.5% per year for the rest of the world.
The results show the country with the highest levels of iPMI inflation over the past five years is Hong Kong with a yearly average of 12.2%. The lowest is Kenya with 6.6% yearly average.
However, over the last year Singapore saw the highest level of inflation with 11.3%, and Dubai saw the lowest at 7.3%.
Despite some extreme volatility being shown in previous years for iPMI, during the last two years a more stable downward trend has been reported. Globalsurance believes this is due to several reasons:
- The rapid growth of the iPMI market over the past five years has given insurers access to greater statistical results, allowing them to accurately adjust prices accordingly in each region.
- The slowing down of the global economy, particularly in China and Asian economies.
- Increased price competition due to local insurers offering competitive options for international insurance.
The report summarises the changes in inflation are related to increased healthcare costs. Though it stresses this is only part of the cause as the cost of treatment makes up only 50 percent of the cost of health insurance.