Insurers see significant increase in canceled and lapsed individual health plans

Insurers see significant increase in canceled and lapsed individual health plans
Sandy Morley, from the Bahamas Insurance Association. (FILE PHOTO)

NASSAU, BAHAMAS — Insurers have seen a “significant” increase in canceled and lapsed individual health coverage policies amid the COVID-19 pandemic, according to Bahamas Insurance Association (BIA) Vice-President Sandy Morley.

Speaking with Eyewitness News, Morley explained: “There are two types of coverage, first those who are under group coverage and then there is individual coverage.

“Fortunately, to date we have not had any noticeable increase of employers canceling employee health coverage.

“That is not to say that as these contracts come up for renewal they will be renewed.

“Companies are still living up to their commitment for health insurance for their staff.”

Morley added: “On the individual side, naturally we are seeing the adverse effect of what is happening in the wider economy.

“Delinquency has gone up significantly and we are also seeing a number of lapsed policies due to their person’s income being impacted as a result of the pandemic.

“There is an obvious fall-off. I don’t have the percentages, but I know there has been a significant increase.

“On the employers side we are not seeing any fall-off as yet but I can’t speak to what will happen when they come up for renewal.”

Morley noted there is concern over this trend.

“The increase in delinquencies is a concern,” Morley said.

“It impacts the bottom line and it impacts the ability to continue to offer coverage and the schedule of benefits because those are priced based on volume.

“Lower volumes would have a significant impact.”

1 comments

Because there is no money as there are no tourists. We are a tourism driven nation. As long as there is quarantine required we will have no rebound in our primary industry.

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