DKV Globality Health Premium Increases Excessive
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In news which will not be welcomed by any existing policyholders, Cooper Claridge-Ware can reveal that DKV Globality Health Insurance premiums on two of its highest plans are set to increase by 80 – 100 % this year. This extreme price rise follows an already drastic price increase of 35% which the company applied to all of its health insurance products in 2012 and sees the cost of a DKV Globality Health Insurance policy increase beyond the average 11% inflation rate experienced within the global healthcare industry as a whole.
On top of the excessive price increases being applied by Globality Health on all of the company’s health insurance products is the decision not to offer either of the provider’s top two plans to Hong Kong residents – the Top and Plus insurance products from DKV Globality Health have been frozen for buyers with a Hong Kong residential address, although these policies are still available elsewhere in the world.
This is a blow to many local consumers as the Top and Plus products offered by DKV Globality Health were able to provide a number of flexible coverage options which have not traditionally been widely available within the Hong Kong insurance market. This includes innovative Newborn Child insurance protection and IVF Insurance coverage which are benefits which have only been provided by a limited number of leading insurers.
However, the coverage offered by DKV Globality may be part of the cause with regards to the company’s excessive premium increases. Many industry analysts have long questioned the sustainability of the Globality Health product portfolio as the company expanded into the Asia-Pacific region, and those questions were proven to be on-the-mark when the company instituted the first drastic premium increase in 2012.
New DKV Globality Health Insurance Pricing in Hong Kong
As of October 1st 2013 DKV Globality YouGenio Plus and YouGenio Top policies will no longer be sold to health insurance customers living in specific Asian countries, including Hong Kong, China, Singapore, and Macau.
Policyholders in these Asian locations who currently possess a YouGenio Plus and YouGenio Top plan will experience premium increases of up to 85% when they renew their policies. Furthermore, customers being covered under a YouGenio Plus or YouGenio Top policy in the company’s Zone B coverage area - which offers worldwide protection excluding the USA - will see premiums increase by 100% of their current levels.
New DKV Globality Health Maternity Waiting periods
Additionally, and on top of the pricing increase being placed on these policies, are a number of changes with relation to the operation of the coverage being provided by these plans, most notably the move to extend the YouGenio Plus and YouGenio Top maternity waiting period from 10 to 24 months in the event that a single woman is being covered by the plan.
Should a couple (both the male and female partner) have obtained maternity insurance protection under either of these two policies the maternity waiting period will increase from 10 to 12 months from the start of the policy.
However, it is important to note that the change in maternity waiting periods applies only to new applicants joining the YouGenio Plus and YouGenio Top products after January 1st 2014. As both of these plans are being frozen for customers in Hong Kong the impact of the change will be relatively minimal, but can potentially be of consequence to potential policyholders elsewhere in the world.
Additional DKV Globality Health Policy Changes in 2014
In addition to the excessive premium increases being placed on the Top and Plus products within the DKV Globality portfolio, the company is also raising premiums on all of its other policy offerings; albeit with premium inflation levels which are much more in line with the global insurance and healthcare industries at large.
Premiums for DKV Globality's Classic health insurance plans are set to increase by 12% as of January 1st 2014, while the cost of the company’s Essential products are going to rise by 18% of their current value. The increases on both of these two product lines, while high, are more in-line with the general medical inflation rate of 11% per year being experienced with the health insurance industry. However, consumers should not take this to mean that either the Classic or Essential products offered by DKV Globality will remain free from drastic price increases in the future – with a fundamentally flawed pricing strategy on the company’s other health insurance products the risk remains that even these lower level coverage options could potentially see stark price hikes over the next 1 to 2 years.
Finally, DKV Globality has also announced that the company’s policy offerings in Germany, and those designed for Corporate Group Medical Insurance schemes, will see price increases in 2014. DKV Globality Coverage options in Germany will be increased by an average 9.5% for Zone A and C policies, with Zone B pricing set to rise by 16%. Globality CoGenio, the company’s corporate health insurance plans, will increase by 9% for new purchases and renewals occurring after December 31st 2013.
Health Insurance Options for DKV Globality Health Customers
With the large premium increases which DKV Globality Health is set to place on health insurance customers in Hong Kong many policyholders may opt to look for additional coverage options which provide a more cost-effective solution for their health insurance needs.
Cooper, Claridge-Ware has extensively analysed the Hong Kong health insurance market and has identified a number of alternative providers which satisfy many of the requirements which current DKV Globality Health policyholder have with regards to their medical insurance protection. International Insurance companies which are suitable for DKV Globality policyholders who wish to change their provider include:
- AXA PPP health insurance
- Allianz Worldwide Care health Insurance
- Pallas Global Health Insurance
- Bupa International Insurance
These are just some of the many international health insurance and Hong Kong health insurance companies which CCW recommends for customers impacted by the DKV Globality Changes.
In the event that you would like to learn more about this situation, the reason for the changes to the DKV Globality Insurance policies, or if you would like to explore alternative coverage solutions with a different provider, please Contact CCW to speak to an expert Hong Kong Insurance Broker today.