Private insurers to let policyholders switch to new riders without additional underwriting

Private insurers are supportive of the new rider requirements that will see patients bear a larger portion of hospital bills, and say that those who intend to switch to new riders in 2026 can do so without additional underwriting.

- Yap Wei Qiang Correspondent

On Nov 26, the Ministry of Health (MOH) announced that new riders sold from April 1, 2026, will no longer be allowed to cover the minimum deductibles patients have to pay before insurance kicks in.

In addition, those on the new riders would need to pay a larger portion of their bills, as the co-payment cap will be doubled to $6,000.

As a result, rider premiums are expected to go down significantly.

So, while patients will pay more when they have to go to the hospital, this will generally be offset by lower premiums each year, so they end up paying less overall.

Mr Chan Wai Kit, executive director of the Life Insurance Association Singapore (LIA), said the industry supports MOH’s initiative, which aims to “manage rising claims costs and ensure the long-term sustainability of Singapore’s health insurance portfolio”.

LIA is the trade association for life insurance product providers and life reinsurance providers.

He added that IP insurers will facilitate a transition to the new riders without additional underwriting for new rider buyers coming on board before April 2026.

Existing rider policyholders, or those who intend to upgrade or downgrade their riders during this transition period, will also be able to switch to new riders without additional underwriting.

Underwriting refers to the insurer’s assessment of an applicant’s risk profile, which will be used to determine the premiums payable and scope of coverage. In certain cases, insurers may include new exclusion clauses or even reject the application.