We’re familiar with high profile types of insurance coverage. Death, loss of limbs, loss of senses, big scary things. Those bang on the fact that a low percentage of people would meet unfortunate accidents. That’s also why you see insurance blossoming in ‘safe’ countries where death or major injury rates are low.
I got a call today from a lesser known insurance company fronting for DBS customers. It was a $18.90 per month coverage on every tiny detail. Flu, grazes, sprained ankles, cuts, grazes, minor stuff. They cover your clinc visit dollar for dollar. I rejected it of course. Not because it wasn’t good but because I don’t really spend more than $18.90 on clinical visits on average. This is basically going all out the other way. The ratio between premium to coverage is now really tight as compared to the usual big time coverage but the strategy remains the same.
If I was offered this before my tonsil and sinus operations, I would have made huge savings. At one point in my secondary school days, I had flu every 2 weeks. My medical bill each month would average out to $40. Imagine the savings. After getting real comfortable with SGH’s ENT department, I’m now getting a major bout of flu once every 3-4 months. Maybe if I was more of an outdoors person this would suit me. Nevertheless, I don’t rake up anything close to a $226.80 clinical bill each year so this is a strict no-no. It is clear that this is a pilot test and they are targeting young adults who are either finishing their studies or starting work. These are the people who are working their asses off on average so the likelihood of them being out in the sun cutting themselves or catching a cold is less probable. Again, young adults nowadays are less physically active. So I guess this may be a viable strategy for insurance companies.