New IP rider premiums to cost at least 30% less, with one insurer offering an 84% reduction

Private health insurers gearing up for the launch of new riders have revealed that policyholders who switch schemes come April 1 could see premium reductions of at least 30 per cent, with one insurer offering premium reductions of up to 84 per cent.

All seven insurers will be launching new Integrated Shield Plan (IP) rider products by April 1 in order to meet the Ministry of Health’s (MOH) new requirements.

The new requirements stipulate that new IP riders will no longer be allowed to cover the minimum deductibles set by MOH, meaning those with the new riders have to pay at least $1,500 before insurance coverage kicks in.

In addition, the co-payment cap will be doubled from the current $3,000 to $6,000, requiring policyholders to pay a larger portion of their bills.

The move by MOH aims to address rising insurance premiums and private healthcare costs by instilling discipline in healthcare consumption, particularly for minor episodes. This in turn will slow down the migration of private healthcare patients to the public sector, which already caters to 90 per cent of patients.

Earlier checks by The Straits Times found that the majority of existing rider plans will cease sales as they contravene the new requirements. Only two plans can continue to be sold.

With some insurers planning to launch new riders in March, ahead of the April deadline, ST asked for details of their products, specifically the premium difference which policyholders may see if they switch to the new riders.

MOH said in November 2025 that with the new requirements, new riders are expected to cost a lot less – premiums will be about 30 per cent lower than those of existing riders with maximum coverage.

Those currently without a rider can purchase the new products when they are launched. Existing rider policyholders can also choose to switch to these cheaper products, but it is not mandatory for them to do so unless their riders were purchased on or after Nov 27, 2025.

Prudential Singapore confirmed that premiums of its new suite of IP riders will be at least 30 per cent lower across all age groups, with some having a larger reduction, but it did not provide the largest differential.

It said the new suite of riders will be similar to its existing offerings of hospitalisation plans, which allow customers to choose one that best suits their budget and needs. It will release more information on April 1.

Income Insurance will launch two new IP riders with features such as “tiered co-payment and new value-added benefits”. It did not elaborate but said that details will be on its website on April 1.

On premium differential, Income said the average savings will be 32 per cent. “The exact premium reduction may vary depending on the type of plan and policyholder’s age,” added Income chief customer officer Dhiren Amin.

Singlife will launch three new riders to be sold with its three underlying base IP plans. Details of the riders, including new benefits, will be released around end-March, it said.

Premiums will be reduced by at least 30 per cent across all age bands, and the extent of reduction could go up to 84 per cent, said Ms Helen Shen, group head of products for Singlife.

This would mean that for a policyholder who is currently paying $2,000 each year for a specific Singlife rider, switching to the new rider would lower the premium payable to $1,400; and for some in a specific age band, the premium could even be lowered to $320.

However, not everyone switching would see such a huge reduction in premiums. “The level of premium reduction will vary by age, as premiums are priced based on the overall healthcare consumption patterns for each age group and costs of the specific portfolio,” explained Ms Shen.

HSBC Life chief health officer Manu Tandon said HSBC will launch its new Enhanced Care II rider, which can be purchased on top of its current three HSBC Life Shield IP plans – Base Plan A, Base Plan B and Standard plan.

“We can confirm that premiums for the new rider will be a minimum of 30 per cent lower for all ages, as compared with premiums for our existing Enhanced Care I rider across all plans,” said Mr Tandon.

He added that the new product will also provide enhanced and inclusive coverage options “to better support health outcomes and sustainable healthcare practices for our customers”, but did not provide additional details.

Raffles Health Insurance (RHI) will launch the Raffles Shield Choice Rider to replace the existing Raffles Key Rider, said its general manager Ben Siah.

Like the existing rider, the new rider will similarly cover cancer drug treatments not on MOH’s Cancer Drug List, with a benefit of up to $5,000, according to information on RHI’s website. Mr Siah confirmed this and added that details of the new rider and premium rates will be released on April 1. He declined to comment on the expected premium reduction.

AIA Singapore and Great Eastern were coy about details of their new products, though both said they would launch more than one new product. In their responses to ST, AIA said it will give details on April 1, and Great Eastern said it will give details “in due course”.

The Life Insurance Association Singapore said actual premium reductions will depend on factors such as whether the rider covers only up to public hospital stays or also includes private hospital stays, as well as the insurer’s pricing policies.

Even if different age groups see the same percentage reduction in premiums, older policyholders may see larger differences in absolute dollar terms, given that their premiums are comparatively higher than those for someone younger, said the association’s executive director Chan Wai Kit.

Asked about the huge reduction in the premiums of new riders, Mr Eddy Cheong, chief executive officer of insurance advisory firm Havend, said he was not surprised.

He said that premiums would likely be reduced more for riders that cover up to public hospital stays, compared with those that also cover private hospital stays. This is because there is expected to be a significant reduction in the insurer’s payout for riders covering public hospital bills, as public hospital bills are generally lower than private ones and patients will be footing more of the bill themselves under MOH’s new requirements.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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