HONG KONG SAR – Media OutReach – 13 February 2023 – As the global medical inflation continues to rise, most medical insurance plans have increased their premiums in order to cope with the rising costs. Bowtie, Hong Kong’s first virtual insurance company, is devoted to reducing costs with technology. Throughout the past 3 years, Bowtie has been offering free upgrades on its VHIS coverage, allowing HongKongers to enjoy more comprehensive medical protection at a more affordable premium.
Hong Kong Medical Inflation Rate Reaches 8.8%
According to the 2023 Global Medical Trends Survey by WTW, a multinational insurance consulting company, the global inflation and pandemic have led to a surge in healthcare usage, pushing the global medical costs to a nearly 15-years high.
It is estimated that the global average medical inflation rate will rise from 8.8% in 2022 to almost 10% in 2023, and during the same period, Hong Kong’s medical inflation rate will rise from 8.2% to 8.8%.
| 2021 | 2022 | 2023 | |
| Global | 8.2% | 8.8% | 10% |
| Hong Kong | 7.5% | 8.2% | 8.8% |
Source: Global Medical Trends Survey by WTW
Bowtie Offers Upgraded Coverage Instead of a Raise
Medical inflation will inevitably make the public bear burdens while leading to higher operating costs for insurers as they have to pay out more for medical treatment. However, Bowtie, as the first virtual insurance company in Hong Kong, is committed to providing better protection at the best possible premium via reducing unnecessary costs through technology.
Instead of increasing its voluntary medical insurance premiums, Bowtie has continued to provide a series of free coverage upgrades over the past 3 years, despite the recent inflationary spike. Bowtie VHIS Flexi Regular and VHIS Flexi Plus have upgraded 7 benefits, mostly around 4 areas. For example, surgeon’s Fee, anesthetist’s fee and operating theatre fees were increased by 20% to reduce out-of-pocket expenses, room and board and miscellaneous charges were enhanced 5-29% to reduce customer shortfalls, and the pre- and post-confinement outpatient care coverage was increased by 18-55%. All customers shall enjoy extra medical coverage at the same premium.
Bowtie Launched 5 VHIS Plans to Offer “Just-Fit” Protection
Bowtie offers a variety of plans under the Voluntary Health Insurance Scheme, including VHIS Standard Plan, VHIS Flexi (Regular), VHIS Flexi (Plus), Pink (Semi-private Room) and Pink (Private Room), policyholders can choose the most suitable VHIS plan according to their own budget and needs.
| VHIS Standard | VHIS Flexi (Regular) | VHIS Flexi (Plus) | Pink (Semi-private) | Pink (Private) | |
| Monthly Premium¹ | HK$123 | HK$200 | HK$356 | HK$257 | HK$480 |
| Insurance Amount | HK$420,000/ year | HK$600,000/ year | HK$1 million/ year | HK$10 million/ year | |
| Lifetime Coverage Limit | No lifetime coverage limit | HK$50 million/ lifetime | |||
| Additional Medical Coverage | No additional medical insurance | HK$120,000²/ year, 11 additional protection items | HK$220,000²/ year, 11 additional protection items | Not applicable | |
| Deductible | No deductible option | HK$0／HK$20,000／HK$50,000／HK$80,000 | |||
| Full Compensation Items | No full compensation items | Full compensation3 on eligible medical expenses such as diagnosis, hospitalization, surgery and prescribed non-surgical cancer treatment | |||
| Suitable For | Those who have basic hospitalization medical insurance with a budget | The compensation rate in the past is as high as 90%⁴, suitable for those who pursue cost-effective and do not have any medical insurance | Suitable for those who do not have any health insurance and require semi-private ward services | People who hold other medical insurance policies with deductible Top-Up medical protection | Those who have high requirements on the treatment environment and services |
¹Assuming the insured is a 30-year-old non-smoking male
² With 20% co-insurance; only applicable to the insurance items marked with SMM in this plan.
³ The Bowtie Pink Voluntary Health Insurance Scheme fully pays for eligible medical expenses such as diagnosis, hospitalization, surgery and prescribed non-surgical cancer treatment (except in the United States), subject to the annual benefit limit and lifetime benefit limit. If the claim involves a Chinese hospital that is not on the list of designated hospitals in Mainland China / a high-end hospital within the list of designated hospitals in Mainland China / exceeds the designated ward level / pre-existing diseases before applying for insurance, the relevant compensation amount may be adjusted. Please refer to Sections 1(b), 1(c) of the First Supplement and Section 6.4 of the Terms and Conditions for details.
⁴ As of September 2021, the compensation rate for Bowtie VHIS Flexi (Regular) is 90%.
Hashtag: #BowtieLifeInsurance #VoluntaryMedicalInsurance #MedicalInflation
The issuer is solely responsible for the content of this announcement.
About Bowtie
The Bowtie Life Insurance Company Limited is an authorised life insurance company and Hong Kong’s very first virtual insurer approved under the Fast Track pilot scheme. Through the use of modern technology and medical expertise, Bowtie offers a commission-free convenient online platform for customers to quote, apply and claim for health insurance plans certified by the Health Bureau under the Voluntary Health Insurance Scheme (VHIS). In addition, Bowtie has also gone into everyday life by creating the One-stop Primary Care Centre 
Bowtie & JP Health and the Asian Health Hub Gobowtie. Bowtie is backed by Sun Life Financial, Mitsui & Co., Ltd and supported by leading international reinsurers.
Stay up to date at www.bowtie.com.hk.
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This content was prepared by Media OutReach. The opinions expressed in this article are the author’s own and do not reflect the view of Siam News.
