Author
Bowtie Team
Updated on
2025-05-26
Disclaimer: This article is translated with the assistance of AI.
In an uncertain economy with rising costs, voluntary medical insurance premiums are increasing. Why do they go up? Discover Bowtie’s secrets to saving up to 40%!
3 Main Reasons for Medical Insurance Premium Increases
1. Aging Population
Hong Kong is facing an unprecedented aging population issue. According to the United Nations’ Asia-Pacific Population Ageing Report , by 2050, Hong Kong will surpass Japan and Korea to become the region with the highest density of people aged 60 and above globally. At that time, nearly one in every two Hong Kong residents will be aged 60 or older.
The elderly population places immense pressure on the healthcare system. Currently, one in every two older adults has a chronic condition, and those with chronic diseases are hospitalized three times more frequently than the average person. We estimate that by 2050, Hong Kong’s annual public healthcare expenditure could reach up to HK$800 billion. *
The changes in population structure have led to a significant rise in healthcare demand and costs, thereby driving up medical insurance prices.
*Figures are based on the 5.6% average annual growth rate of public healthcare expenditure from 2010-2020 and are for reference only.
2. Rapid Rise in Drug and Treatment Costs
Medical technology advancements are a double-edged sword. On one hand, they offer hope for diseases once thought incurable; on the other, the costs of these new drugs and treatments are often extraordinarily high.
For example, cancer treatment can total over a million Hong Kong dollars, equivalent to three times the annual income of an average Hong Kong household.The increase in drug and treatment costs directly impacts insurers’ claims expenses, leading to higher premiums.
3. Abuse of Insurance Claims
In recent years, “high-end medical insurance” products have emerged, emphasizing “full reimbursement” with some offering “lifetime unlimited” coverage. While well-intentioned, these designs have unintended issues. For instance, some doctors attempt to overcharge insurers ; private healthcare providers may charge an extra HK$6,000 for the same procedure if claiming through insurance.
In reality, the cost is passed on to policyholders, as abuse of claims increases payouts and drives up premiums.
3 Ways to Combat Medical Insurance Price Increases
1. Eliminate Agents and Use Technology to Cut Costs
Bowtie operates without insurance agents, saving on commission expenses. As revealed by former MDRT member and current YouTuber Zhi Wei , traditional insurers may spend up to 35% of premiums on agent commissions in the first year, and 15-30% in subsequent years.
Additionally, Bowtie streamlines its structure with technology and automation, allowing a small team of around 100 employees to serve over 100,000 customers, greatly improving operational efficiency.
2. Insure What Should Be Insured
Bowtie’s product design follows the principle of “insure what should be insured,” providing comprehensive coverage while implementing reasonable limits to prevent abuse. For example:
- The Bowtie Pink Semi-Private Room Plan has an annual reimbursement limit of HK$1 million and a lifetime limit of HK$50 million, effectively balancing protection and costs.
- Both the Bowtie Voluntary Health Insurance Flexible Plan and Bowtie Pink Plan include a 90-day waiting period for pre-existing conditions, preventing abuse and ensuring fairness in the risk pool.
3. Risk Pool Management
Bowtie believes that keeping customers healthy is the best way to control insurance costs.To this end, we regularly invite medical experts to create health information videos on YouTube, helping the public understand disease prevention methods and early symptoms; we also encourage customers to undergo regular health check-ups, practicing the principle of “treat illness early.”
These measures help reduce the incidence of major diseases and related expenses, thereby lowering insurance claims and controlling premium growth in the long term.
Save Up to 40% on Premiums with Bowtie!
We’ve discussed a lot of theory above, so how does Bowtie’s premium competitiveness stack up? Let’s look at the numbers:
- Bowtie Standard Plan saves an average of 29% 1
- Bowtie Flexi (Regular) saves an average of 40% 2
- Bowtie Pink (Semi-Private Room) saves an average of 20% 3
- 1 The above premium comparison data is based on market research conducted on December 19, 2024, using public data, covering premiums for standard voluntary medical insurance plans on the market. Premiums for plans from other insurance companies are calculated based on annual premiums, using non-smoking males aged 30-55 as an example. For details, please refer to the relevant policies and their terms and conditions.
- 2 The above premium comparison data is based on market research conducted on February 25, 2025, using public data, covering similar voluntary medical insurance plans at the standard room level with “Additional Medical Coverage” and “Room and Board” limits of $800 – $1200, and calculating the standard annual premium for a non-smoking male aged 30 to 55. Different medical insurance plans have varying coverage and limits, so for details, please refer to the relevant policies and their terms and conditions.
- 3 The above premium comparison data is based on market research conducted on December 19, 2024, using public data, covering similar medical insurance plans at the semi-private room level with a deductible option of HK$0, and calculating the base premium for non-smoking males aged 30-55. Different medical insurance plans have varying coverage and limits, so for details, please refer to the relevant policies and their terms and conditions.
How Easy Is It To Make A Claim With Bowtie?
Low premiums do not mean that Bowtie will pass costs onto customers, nor will we deliberately be “tight” with compensation.
In fact, since launching our voluntary medical insurance products, Bowtie has processed over 10,000 compensation cases, with a success approval rate of 98.3%^!
- ^ As of February 2025, the average ratio of approved claims for Bowtie’s voluntary medical insurance “Standard Plan”, “Flexible Plan – Basic”, “Flexible Plan – Upgrade”, and Bowtie Pink.
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