Hong Kong (PRWEB) July 12, 2013
IMG are set to add the option for moratorium underwriting on their GlobalFusion plan instead of only providing full medical underwriting with exclusions. Globalsurance analysts believe that the faster processing time and the higher chance of coverage for pre-existing conditions should be greatly attractive for retirees, one of the plan's main target markets.
Moratorium and full medical underwriting (FMU) are the two ways that insurers handle a client's pre-existing conditions (pre-ex). With moratorium underwriting, the client is given a period of time, usually 24 months, to be on the plan before any pre-ex are covered. During this period, if the client has no symptoms, special diet, treatment, or advice sought for their condition, only then will the insurer consider providing coverage. If any of these actions were taken during the period, then another 24 month period is required before coverage will be considered.
With full medical underwriting, any pre-existing conditions clients have will not be covered. The client must also complete a full questionnaire on their medical history. The number of questions usually is around 30, in comparison to the moratorium questionnaire, which usually only has 3-5 questions. Traditionally, insurers may cover pre-ex with an additional premium known as loading. IMG's FMU plans however, do not feature such an option.
Moratorium underwriting will likely not cover high risk conditions that require continuous treatment such as blood conditions or cancer. For some blood conditions, the loading costs can be up to 100%. However, injuries and smaller risk conditions will still be covered in the premiums without additional loading.
Moratorium underwriting has already been adopted by insurers such as Globality Health, ALC, and A Plus; it is quickly becoming one of the more prevalent options. As both the policies and levels of coverage continue to improve, Globalsurance analysts are eager to see how it will change the market in the future.
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