Page 97 - MEDICAL AND HEALTH INSURANCE

MEDICAL AND HEALTH INSURANCE

5.4 TRANSFERRING BUSINESS

Policyholders can choose their preferred insurance company and intermediaries when
taking up a plan. So business can be transferred from one intermediary to another or

one insurance company to another upon the request of the policyholder, during the

policy anniversary date. There may be some risk in transferring, especially during the

transitional period, where the new intermediary must get himself familiar with all the

procedures and documentation to provide good service. Generally, there are reasons
for the transfer as mostly clients do not want changes to disrupt their operations. The

other transferring business can be from insurance company to insurance company

when an insurance company decides to pull out of the MEDICAL AND HEALTH
INSURANCE POLICY market and transfer the business to a new insurance company.

5.4.1 BUSINESS TRANSFERS BETWEEN INSURERS

Business transfers between insurance companies are not common and the new

insurance company has to consider the following:
a) How many of the customers are willing to switch?

b) How profitable is the business likely to be?

c) What is the value of adding new customers?
d) Is there a payment consideration for it?

e) Is the existing TPA willing to continue with the arrangement and, if so, on what

terms? What is the time frame for the total switch?

5.4.2 OPTIONS AVAILABLE TO THE NEW INSURER

There are various options available to the new insurance company:

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