How VHIS Premiums Are Calculated and Why They Change
Product documents checked 21 October 2026
Separating those effects is more useful than assuming an increase means you were penalised for claiming.
Three amounts to distinguish
| Component | What it means |
|---|---|
| Standard premium | The published rate for the applicable age and other rating factors |
| Underwriting loading | An additional premium accepted under your individual underwriting terms |
| Portfolio revision | A change to the standard schedule on the basis permitted by the contract |
The IA levy is another amount to recognise. The premium schedules used here exclude it. A promotional discount can also make the amount paid in one year different from the underlying standard rate. [S3] [S7] [S15]
The age effect in an actual schedule
Bowtie Standard's schedule effective 29 December 2025 lists the following male non-smoker monthly standard rates:
| Attained age | Monthly standard premium |
|---|---|
| 30 | HK$138 |
| 40 | HK$192 |
| 50 | HK$301 |
| 60 | HK$464 |
| 70 | HK$782 |
The schedule was checked on 21 October 2026. The figures show current rates for people of those ages. They are not guaranteed renewal premiums for a 30-year-old over the next forty years. The schedule itself warns that future standard premiums can differ. [S3]
The age curve reflects pricing for different expected risks. “There is no savings element” is not a sufficient explanation of how an insurer sets the rates.
What a portfolio revision adds
Medical costs, expected claims, expenses and other pricing assumptions can affect a product's rate review. A past cost-inflation survey is not a formula guaranteeing the next increase on your policy.
Here is a hypothetical calculation that isolates the mechanics. Assume a base age schedule of HK$2,000 at 30, HK$2,400 at 35 and HK$3,000 at 40. Assume one 5% portfolio increase at 35, followed by another 5% at 40, with all other factors unchanged.
| Age | Original age rate | Cumulative assumed revision | Result |
|---|---|---|---|
| 30 | HK$2,000 | None | HK$2,000 |
| 35 | HK$2,400 | 1.05 | HK$2,520 |
| 40 | HK$3,000 | 1.05 × 1.05 | HK$3,307.50 |
The second increase compounds on the revised schedule; it does not erase the first. This is an explanation of an assumed model, not a forecast or a description of a particular insurer's future reviews.
Where your loading fits
If the underwriting loading is a percentage of standard premium, its cash amount can rise when the standard premium rises even though the loading percentage has not increased.
For example, a hypothetical 20% loading on HK$2,000 is HK$400. On HK$2,200 it is HK$440. Distinguish that from imposing a new individual loading because of a later claim.
Bowtie's renewal wording prohibits an additional rate of premium loading or new case-based exclusion because the insured person's health changes after cover begins, subject to the contract. Ordinary renewal and an application to upgrade cover are different processes. [S1]
Loss ratio is not the whole pricing model
A claims or loss ratio compares claims with the relevant premium measure. Adding an expense ratio gives a combined ratio; it should not be described as merely another version of the same loss ratio. [S29]
A simplified pool with HK$3 million of premium and HK$2.4 million of claims has an 80% claims-to-premium ratio. That leaves HK$600,000 before considering expenses and other relevant items. It does not by itself establish the appropriate next premium.
A single year's favourable claims also does not promise a reduction. Pricing considers expected costs and assumptions, not just one arithmetic result.
What you can change
Compare the room level and deductible you need. For Pink, a higher annual deductible can reduce the standard premium, but you must be able to fund the unoffset amount.
Check the calculation unit. Pink uses a policy-year deductible, so “you pay the first part of every claim” is not an accurate general description. Other eligible insurance payments can reduce the remaining balance under its supplement. [S11]
Before switching for price, obtain the new underwriting offer and compare exclusions. Giving up established cover can be more important than one year's saving.
Read the renewal notice this way
Compare old and new standard premiums, age, loading percentage and amount, discount and levy. Ask for clarification if you cannot reconcile the total.
Then review whether the benefits and deductible still fit your household. Keep the notice with the applicable schedule rather than relying on an old quote.
Related reading
VHIS premium comparison · Deductibles · Renewal
Sources and method
Published documents checked 21 October 2026. Calculations are explained in the article; hypothetical examples are not customer claims. The applicable policy and underwriting terms govern individual cover.
[S1] Bowtie VHIS Standard — Terms and Conditions
[S3] Bowtie VHIS Standard — Premium Schedule—Standard
[S7] Bowtie VHIS Flexi — Premium Schedule-Flexi Regular
[S15] Bowtie Pink — Premium Schedule – Bowtie Pink (Ward)
[S11] Bowtie Pink — Supplement No. 1-3
[S29] IAIS — combined ratio definition
General information only. Coverage, exclusions and payment are governed by the applicable policy terms. This article does not replace individual insurance, medical or tax advice.
