nib has announced that there will be a number of price changes from 1 April 2021. Pricing changes have been credited to the continued increase to nib’s claims’ costs. Current members will have the changes applied after their policy anniversary, if their policy anniversary doesn’t fall between April to June. nib has highlighted that price changes will vary for each member as price changes will depend on benefits, options and excess.
“Every quarter, nib reviews its health insurance premiums to ensure they are sufficient to cover both current and future claims, as well as to accurately reflect underlying costs.
Our latest review has identified that nib’s claims’ costs continue to increase, and as a result, our health insurance premiums need to be adjusted accordingly. These changes will vary between products, and will affect both current members renewing their policies and new policies sold this quarter.
Current members’ premiums are reviewed annually at their policy anniversary. If your client’s policy anniversary does not fall within the April – June period, there won’t be any change to their premiums until their next policy anniversary.
For the upcoming quarter, there is an average 9.7% annual increase for renewing policies.
Please note that the change in premium for each member will vary depending on the benefits, options and excess they have selected, who the policy covers and whether the premium includes a policy fee.
Other factors that can contribute to premium changes during the policy year include:
• changes in cover terms for any of the people covered
• changes in the ages of people covered
• adding or removing people from the policy
• a move from group cover to individual cover terms and conditions
• loss of a Premium No Claims Discount or change in a five-year age band (these only apply to some legacy products).”
Price changes will automatically be updated for quotes from 1 April. Quotes that were started before 1 April will be use current prices if the application goes into force within 30 days. Price changes for Ultimate Health Max will be spread across each quarter, most changes for Ultimate Health will happen on 1 April. The new rates will automatically be updated on nib illustrations and nibAPPLY. Advisers using nib Illustrator or Fidelity Life desktop Apollo will need to download the update before 31 March 2021 to ensure new rates are automatically applied. Prices changes will not affect group health as a whole, instead price changes will affect individuals that have enhanced cover terms, added family or added optional benefits.
“Premiums included in quotations for prospective new members will be updated from 1 April 2021.
For Ultimate Health Max: Premium increases are spread across each quarter throughout the year.
For Ultimate Health: Most of the annual increase occurs on 1 April each year.
The new rates will be automatically updated in nib illustrations and nibAPPLY. If you are using nib Illustrator and/or Fidelity Life desktop Apollo quoting software, make sure your quotations include the upcoming premium changes by downloading the update before 31 March 2021. Once you have downloaded the update, these rate changes will automatically apply to new and existing quotations after 1 April 2021.
Quotations dated before 1 April 2021 will be honoured if the application goes into force within 30 days of the quotation date. Note that quotations dated from 1 April 2021 will only be accepted at the new premium rates.
For advisers who service group health insurance schemes, please be aware that the premium increases referred to above only apply to the individual members within a group where they have:
· enhanced their group health insurance cover terms; or
· added family or added optional benefits that they pay for personally.
The increase will apply to the portion of their health insurance premium relating to the enhanced cover terms and optional benefits, in the same way as those of members with individual covers. The member’s direct debit or payroll deduction will also change accordingly. Any increase in the group scheme’s premiums will be determined according to the scheme terms and conditions and will be paid for by the scheme owner.”
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