Health insurance underwriting? 4 free pointers for you!

For anyone who has gone through the process of applying for Expat Health Insurance, the word “Underwriting” is one you will be familiar with.

But what does it actually mean, and how does it impact you as a policyholder?

In the following article we take a ‘deep dive’ into insurance underwriting, and most importantly, what it means for you!

Understanding Health Insurance Underwriting

Underwriting is the process insurance companies use to assess the risk associated with insuring a particular individual. In the context of health insurance, underwriters evaluate an applicant’s medical history, lifestyle, occupation, and other relevant factors to determine the likelihood of future claims. This evaluation can help insurers determine premiums and propose coverage terms.  

Why Underwriting Matters

Health Insurance Underwriting is crucial for a number of reasons:

1. Risk Assessment: By analysing an applicant’s risk profile, insurers can accurately assess the potential financial liabilities they face. This helps them price policies fairly and maintain financial stability.  For example, a smoker will be viewed as higher risk than a non smoker. High BMI individuals represent a higher risk than those with a normal BMI.
2. Premium Setting: Underwriting allows insurers to determine appropriate premiums based on an individual’s risk. Those with lower health risks may qualify for lower premiums, while those with higher risks might face higher premiums.  
3. Coverage Customization: Sometimes, underwriters have the freedom to tailor coverage in line with an individual’s needs. For example, if an applicant has a pre-existing condition, the insurer may offer to cover after a certain amount of time, or , with a loaded premium.
4. Screening Process: Underwriting is also a screening process for the insurer to identify and prevent fraudulent applications. By verifying information and conducting background checks, insurers can protect themselves from dishonest and sanctioned individuals.

The Underwriting Process in Thailand

In Thailand, health insurance underwriting normally follows a process along these lines:

1. Application Submission: The client or their broker submits an application form which provides details about medical history, lifestyle, occupation, and other relevant information.  Application forms vary on a provider to provider basis.
2. Medical Questionnaire: You may be required to complete a detailed medical questionnaire to disclose any existing health conditions, medications, or recent medical treatments.  
3. Medical Examination: In some cases, insurers may request a medical examination to assess your overall health. This may include blood tests, X-rays, or other diagnostic tests. This is normally only a requirement when you exceed certain age cut offs.
4. Underwriter Review: The underwriter reviews your application and medical questionnaire. They make request further information which can include your medical records.
5. Decision Making: Based on the evaluation, the underwriter makes a decision regarding your eligibility for coverage, the premium you will pay, and any potential exclusions or limitations.  This is sent to the client in the form of an Offer Letter.

How this impacts You as a Policyholder

There are several ways in which underwriting will affect you directly:

• Premium Costs: Your premium can be influenced by your risk profile. People with a higher than normal risk profile may be subject to premium loading which will increase the premium you pay.
• Coverage Exclusions: If you have pre-existing conditions, the insurer may exclude coverage for those conditions for a specific period.
• Waiting Periods: You may be subject to waiting periods before coverage for certain benefits becomes available. 
• Claim Processing: Your underwriting terms will be the first port of call when you make claims under your policy, and any non standard coverage will be laid out on your offer letter, and subsequently, your policy wording.

Tips for a Smooth Underwriting Process

To improve your chances of a favorable underwriting outcome, consider the following tips:

• Be Honest and Transparent: It’s crucial you disclose all relevant medical information accurately and completely. Failure to do so can result in declined claims later down the line.
• Maintain a Healthy Lifestyle: In the long term, practising a healthy lifestyle will reduce your risk profile from an insurance perspective.
• Choose the Right Coverage: Select a policy that adequately covers your needs.
• Time Your Application Wisely: Applying for health insurance when you are healthy and without pre-existing conditions is the way forward.  If you leave it too late, your coverage can and will be limited.
• Work with a Reliable Insurance Broker: An experienced broker, like Seek2Insure,  can guide you through the underwriting process and help you find the best policy for your needs.

By understanding the underwriting process and taking proactive steps to improve your risk profile, you can increase your chances of obtaining affordable and comprehensive health insurance coverage in Thailand.