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photo: gov.sg

Compulsory ElderShield: No claims to premiums statistics?

I refer to the article “ElderShield committee proposes severe disability insurance scheme be made compulsory, members to start paying premiums at age 30” (Straits Times, Jan 30).

It states that “ElderShield coverage should be made compulsory, including for those with pre-existing disabilities, said the committee reviewing the insurance scheme for people with severe disabilities.

It also recommended that people should start paying premiums at age 30 rather than 40 and suggested that the Government, rather than private insurance providers, should administer it. It also called for the claims process to be simplified.

Although the opt-out rate in recent years is around 5 per cent, more than a third of people opted out when the scheme started in 2002.”

Why are there no statistics on the claims to premiums ratio of the scheme, from its inception?

$2.6b in premiums, $100m in claims

In this connection, according to the article “Gan Kim Yong: $2.6 billion collected in premiums for ElderShield insurance and around $100 million paid out in claims since 2002” (theonlinecitizen, Feb 18, 2017)

– “from 2002 to end-2015, about $2.6 billion have been collected in premiums for ElderShield insurance and around $100 million have been paid out in claims, adding that about $130 million in premium rebates have been given to policyholders so far, the first tranche in 2007 and another in 2012.”

What is the accumulated interest (investment returns) on the excess premiums over the last 15 years? Will it increase the total excess premiums accumulated to over $3 billion?

When will annual claims exceed premiums?

Also, when do we project that the current trend of premiums exceeding claims every year to end? In a few decades or longer – given that the ElderShield scheme is compulsory (opt-out allowed) and that the population may keep increasing, like in the past (so far in Singapore’s history)?

Claims ratio for last year?

For example, what was the claims to premiums ratio for say the last year?

Not spending a single cent?

When will the Government start to allocate some of the Budget into ElderShield, as it does not cost the Government any money now?