Singapore insurers to weigh disease severity in critical illness claims

The Life Insurance Association of Singapore will examine whether critical illness insurance policies should prioritize disease severity over the procedures used to treat them, according to Health Minister Gan Kim Yong.

The shift in assessment methodology could reshape how insurers determine eligibility and payouts for policyholders claiming benefits under critical illness coverage. Currently, many policies tie claims to specific treatments or interventions, an approach that may not adequately reflect the true impact of a diagnosis on a patient's health and financial situation.

Gan indicated that the industry body would conduct a review of current underwriting practices to determine whether realigning claims assessment toward disease severity would better serve consumers. Such a change could potentially broaden coverage for patients who develop serious illnesses but may not require or undergo traditional procedures typically used as claim triggers.

The consideration comes as Singapore continues to refine its insurance regulatory framework to ensure greater consumer protection while maintaining industry viability. The Life Insurance Association's review is expected to evaluate how other markets have handled similar transitions and whether disease-severity-based assessments can be implemented in a way that balances fairness with actuarial sustainability.