More Hong Kong insurers will cover pre-existing illnesses as new voluntary scheme highlights demand, says AXA executive

Insurance companies in Hong Kong will increasingly be willing to offer coverage to people with minor pre-existing medical conditions as the city’s new voluntary health insurance scheme (VHIS) highlights the demand for such policies amid an ageing population, according to a senior industry executive.

Launched last month, the VHIS will provide limited coverage for pre-existing conditions, as long as there is no evidence to suggest the policy holder had prior knowledge of the ailment. Most private health insurers exclude illnesses that occurred prior to the purchase of the policy.

But Alexander Chiu, medical director of health and employee benefits at AXA Hong Kong, believes the city’s providers will start to offer insurance for people with mild known pre-existing illnesses, albeit with higher premiums. That is because they have realised demand is not being met by conventional policies that do not cover pre-existing conditions at all, and the newly-introduced VHIS only covers unknown pre-existing ailments.

“There are plenty of people suffering from chronic conditions who want to buy health insurance, but are unable to get sufficient coverage having such conditions,” he said.

“With today’s fast advancing medical technology, the future trend, including with our company, is to extend coverage to some people with minor chronic conditions such as high blood pressure and diabetes by charging them a loading, and on a discretionary basis, depending on the insurer’s risk appetite.”