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Insurance Loadings and Exclusions Can Be Reviewable
When you submit an nib health insurance application and nib underwrites the cover, Nib sometimes applies loadings and exclusions to the policy.
Why there are loadings and exclusions?
Loadings and exclusions enable an insurer to manage the anticipated claims costs associated with the client’s cover and ensure their premiums reflect these anticipated costs. In effect, loadings and exclusions also ensure other clients are not subsidising the premiums of other less healthy clients.
Being aware of the loadings and exclusions in your policy
Some loadings and exclusions are reviewable and many advisers record them and their review date in the adviser’s client records. They raise these for discussion when the review date first occurs or during the client’s subsequent annual client reviews. The discussions are to identify whether there are likely to be grounds for having an insurer reassess the loading / exclusion and potentially having them removed.
Why is policy review important?
For clients, removing a loading can reduce premium costs, while removing an exclusion can increase the scope of their cover and claimable health treatments. These will add value to your policy and demonstrate the insurer's commitment to its clients' better health.
Nib is now reviewing its clients' loadings and exclusions
Nib is currently contacting its members with reviewable loadings and exclusions to offer them the opportunity to have these reviewed. The review process and the outcome of it varies depending on:
- whether it is a loading or exclusion
- its nature
- the client’s recent health
- any associated treatments in relation to the health condition that gave rise to the particular loading / exclusion.
If you have any questions about loadings and exclusions, please contact us.
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