Important Measures
FSC amends the incidence rate used for calculating personal accident insurance premiums
2021-02-09
In order to ensure that the actual experience of insurers is reasonably reflected in premium rates, the FSC has amended the incidence rate used in calculating premiums for personal accident insurance (not including travel accident insurance). The previous method set the maximum incidence rate for the main contract and supplemental contracts at 65.448‰ (i.e. 80% of 81.81‰), but this has been lowered to 57.267‰ (i.e. 70% of 81.81‰), effective as of 1 July 2021. This lowering of the pricing incidence rate will provide consumers with a choice between a lower premium burden or a higher insured amount, and will help them to plan out insurance protection on the basis of their own needs. Also, with personal accident insurance policies (not including travel accident insurance) for which prior approval, file-and-use approval, or use-and-file approval is received from the FSC before the amended incidence rate comes into effect, lower premiums shall apply across the board, provided that if an insurance company notifies a policyholder and receives the latter’s consent, the insurer may provide a higher insured amount.
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- Update: 2021-02-09