Seth’s Blog on Finance

Insurance firms must be made to justify higher premiums: TODAY voices

A reader of TODAY wrote in to the publication regarding his thoughts about the increase in insurance premiums:

I see two current issues regarding insurance that impact cost of living. One is the wide range of premiums for health insurance offering similar hospitalisation coverage and the ability of insurers to hike premiums by a large quantum upon renewal.

He is quite astute to note that the cost of insurance policies does impact cost of living — significantly so, I might add. I get this feeling that most Singaporeans do not seem to notice this fact at all, seemingly buying policies without much thought or research, perhaps out of a misplaced trust in the person selling them these policies. When it comes to increasing food prices or transport fares, the same people are understandably upset at the rising costs of living, but they seem oblivious to the fact that a bad insurance portfolio can cost them so much more over their lifetimes.

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