Insurance companies’ total compensation to COVID-19 insurance policyholders has exceeded total premiums as the number of infections continues rising, the Financial Supervisory Commission’s (FSC) latest data showed yesterday.
As of Monday, aggregated compensation paid to those infected with COVID-19 or in quarantine grew 43 percent from a week earlier to NT$2.58 billion (US$87.1 million), higher than cumulative premiums of NT$2.11 billion, which were up 9.9 percent from a week earlier, commission data showed.
The data showed that 73,135 policyholders had been compensated, 23,231 more than the previous week, with the number of COVID-19 insurance products sold rising 7.6 percent to 2.69 million.
Photo: George Tsorng, Taipei Times
The commission does not yet know the exact loss ratio, which is obtained by dividing total premiums by combined compensation, as insurers are still busy reviewing and approving claims as the number of domestic infections continues to rise.
Cathay Financial Holding Co (國泰金控) and Fubon Financial Holding Co (富邦金控) have said that premiums from the sales of COVID-19 insurance policies by their insurance units are still higher than compensation paid.
Shin Kong Life Insurance Co (新光人壽), a unit of Shin Kong Financial Holding Co (新光金控), yesterday said its compensation paid on COVID-19 insurance policies would not affect the company’s financial strength.
On average, 10 policyholders have claimed compensation each day, with the average amount of compensation less than NT$20,000, Shin Kong said.
In light of policyholders’ complaints about insurers’ slow approval of their COVID-19 claims, the commission requested that all insurers speed up their processing and complete underwriting the products by the end of next month, Insurance Bureau Director-General Shih Chiung-hwa (施瓊華) said.
As a result, policyholders would know whether they have successfully purchased a policy no later than the end of next month, she said.
“So far, about 1 million purchases [of COVID-19 insurance policies] have not been completed,” Shih said.
Commission Chairman Thomas Huang (黃天牧) yesterday said that it is not the commission’s duty to “limit the damage” to insurers, but to ensure that consumers’ rights are protected and that COVID-19 insurance policy sales would not put an extra burden on the nation’s hospitals.
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