Hong Kong Group Insurance Leaves Many Underprotected

Int’l Desk: Most working people in Hong Kong depend on the group medical insurance provided by their employers yet few believe it truly covers the medical bills they face in real life.

A recent survey commissioned by FWD Hong Kong found that 71 percent of respondents with employer-provided group cover said they mainly rely on that protection, but only 29 percent felt it was enough to meet their actual medical expenses. Just 17 percent, or about one in six, have gone ahead and purchased extra top-up plans to close the gap.

The survey, which polled more than 1,100 working individuals aged 25 to 65 between June and July this year, also highlighted deeper worries about the future.

Fully 74 percent of those questioned expressed concern about having to shoulder high medical costs on their own after they retire. The same share fretted about premiums climbing as they grow older, while 73 percent pointed to medical inflation as a major pressure. Another 68 percent worried that applying for insurance later in life would mean complicated underwriting or even outright rejection.

Sixty-four percent said they would prioritise using their company group medical insurance when making claims. The catch is that this type of cover is almost always tied to employment, so it disappears when someone switches jobs, leaves the workforce or reaches retirement.

Among those who already hold individual medical insurance with a deductible to supplement their group benefits, 51 percent admitted they would not feel confident covering that deductible alone if they lost their employer plan.

Kelvin Yu, chief proposition and healthcare officer at FWD Hong Kong and Macau, noted that the working population leans heavily on employer-provided group medical insurance, yet this cover often falls short of actual costs for individuals and their families.

He added that protection gaps tend to widen as people change jobs, leave employment or retire, especially against a backdrop of rising healthcare expenses.

In response FWD has introduced the EBeyond Medical Insurance Solution aimed at members of eligible group medical inpatient schemes.

The product lets eligible members top up their existing company cover by answering just two health questions, while current members of FWD’s own group schemes can apply without any health underwriting.

It offers two options. The EBoost Plan works as a top-up during employment and provides full coverage for major hospitalisation and surgical expenses within the annual benefit limit, deductible and reimbursement percentage.

The EBridge Plan is designed as primary protection for those who lose group cover after a job change or retirement, with four plan levels covering different ward classes and an optional supplementary major medical benefit on selected levels.