Author
Bowtie Team
Updated on
2025-07-21
Disclaimer: This article is translated with the assistance of AI.
Bowtie’s actuaries quizzed 15 licensed peers on their smart strategies for choosing top-notch medical coverage!
Ever since we got our license, we’ve been chatting non-stop with potential customers over the past few months to understand their views on health insurance . This includes friends from various backgrounds—professionals, tech folks, hiking enthusiasts, even Uber drivers. Older folks tend to be big supporters of health insurance because they’ve experienced illness and felt the crisis. The younger crowd usually hasn’t thought about it; before 30, they feel invincible.
Many of these friends have deep misconceptions about health insurance and little knowledge of the healthcare system. Some are quite resistant to insurance itself, while others feel they need it but only half-understand it. Perhaps because, compared to other countries, Hong Kong’s online resources and analyses on insurance are relatively scarce. Often, you have to rely on an agent to explain.
Actuaries’ Insights on Health Insurance
With that in mind, during the Chinese New Year lull, we reached out to 15 licensed actuary friends and asked how they choose health insurance (mainly hospitalization and surgery). Actuaries are known for being calculating and market-savvy, so they definitely have insights to share.
These number-crunchers, who feel lonely without calculations, quickly answered our questions. They come from major firms or consultancies, different countries, and various levels—from fresh FSA/FIA holders to retirees. With centuries of combined experience, it’s worth a few minutes to check out:
What misconceptions do people have about health insurance?
Foreign actuary visiting Hong Kong for CNY : “You don’t have to bundle medical coverage with investments. Keep medical as medical and investments as investments. Sure, getting money back at the end sounds appealing, but ‘there’s no free lunch’—after commissions, investment-linked products may not offer the best value.”
Product actuary : “First, many think health insurance covers everything fully, but it’s limited to ‘medically necessary’ items with caps; otherwise, premiums would skyrocket. Second, premiums and terms aren’t guaranteed—insurers can raise prices, especially with double-digit medical inflation. Third, many can’t distinguish between critical illness and health insurance . Health insurance reimburses actual expenses with annual renewals and usually guaranteed renewal. Critical illness pays a lump sum (or multiple), and once claimed, you can’t buy it again. Be careful to tell them apart.”
Actuary with 10 A’s in HKCEE : “Not claiming means it’s a bad deal? Actually, no claims is a good thing. Do you really want to claim…?”
Do you think you need personal health insurance?
Senior actuary : “Besides the company plan, many peers buy a basic hospitalization top-up. No need for something fancy—just a simple one to carry around. Claim from the company first if needed, then your own.”
Consulting actuary : “Many actuaries have stable jobs at big firms with decent group medical. Watch out for claim limits—you might need a top-up. Also, if you get a critical illness like heart disease while working, you can’t buy personal insurance later.”
Retired actuary, speaking earnestly : “Insurance is risk management. Minor stuff like colds can be self-paid. Theoretically, cover ‘high-frequency, low-loss’ yourself. Buy for major expensive surgeries. Health insurance efficiently transfers health risks to the insurer, making economic sense.” (The original draft was pages long—true veteran style!)
North American actuary friend : “Buying health insurance is for the ‘lifetime renewal guarantee’—the company can’t refuse or hike your premium based on your claims. Sure, they adjust annually based on the pool, but pay on time, and you’re covered to 80-100. Pretty good deal.”
How would you choose health insurance?
HKU’s first actuarial graduate : “I’d go for ward level coverage because of the value. For me, sufficient limits matter most—better to spend on treatment and surgery, not fancy rooms. Get in, get out. That’s my take, but my wife would probably pick private room.”
Witty actuary : “It’s hard to compare in detail; plans copy each other. Focus on big items: room fees, doctor fees, surgery, annual or lifetime limits. HK$600k-800k yearly is plenty—no need for billions in lifetime cover; you’d never use it unless you get lung cancer 50 times! (Laughs)”
Actuarial professor : “As insiders, we’d spreadsheet-compare products for value and transparency, separating coverage from investments. Health insurance, being reimbursement-based, achieves that.” (Insisted on sharing his Excel as a souvenir during the interview)
The 15th actuary interviewed : “I have group medical, but I’d buy one with high deductible. Zero-deductible ones are usually pricier…”
Aussie actuary heiress : “I didn’t overthink; I can afford it, so I got unlimited high-end coverage. Best protection, though pricier. As long as annual hikes aren’t too much, I’m fine. Hey, gotta run to yoga.” (Sounds like she’s doing well lately)
Would you buy health or critical illness first?
Reinsurance actuary : “Health insurance first, for hospitalization and surgery reimbursements—builds a safety net. Then, a non-savings critical illness as supplement (hard to find now!). Coverage around one year’s salary, so you can rest a year if needed.”
Marketing actuary : “Critical illness ads sell well in HK; people know cancer, heart disease , stroke . But basics are hospitalization and surgery insurance—reimburses bills upon discharge. Critical illness supplements, yet many have it without medical—wrong order.”
Newlywed actuary : “If savings are enough, maybe no need for critical illness. I don’t have any yet; company and hubby’s group medical are okay. Definitions aren’t standardized in HK—does it cover early carcinoma in situ? Multiple claims? Be very careful when buying.”
Chatting with them, everyone was eager to share, but the overall message was consistent.
In short, 9 out of 10 would buy health insurance as a top-up first. Big companies provide coverage, but having a basic, high-deductible medical plan is better. Buy while young and healthy; critical illness or investment-linked can wait if you have extra cash.
Disclaimer: They sound pro, but a few haven’t bought yet due to hassle. Now you can buy online in 10 minutes—please get one each!
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