Health premium increases – November 2024

Each year AIA NZ analyses its medical claims and the cost of servicing a policy carefully so we can continue to provide comprehensive and competitive health insurance offerings.

This year we have observed significantly increased costs across all claims, including medical conditions or treatments.

Reviewing premiums is one way to ensure that AIA’s products remain sustainable, and in response to the higher claims cost we will be increasing our health insurance premiums from 1 November.

Why are health insurance premiums increasing?
There are several factors putting upward pressure on medical costs:

Medical advancements give customers more treatment options, less invasive diagnosis or treatment, and improved patient experience and outcomes but are typically at a higher price.
An increase in general medical costs and private hospital costs in New Zealand are above the average level of inflation in the broader economy.
Growing demand for health services due to an ageing population and growth in chronic conditions such as heart disease, cancer, diabetes and obesity.

When are the changes happening?

From 1 November 2024, new business premiums for AIA and ASB Private Health, AIA Cancer Care, and Specialist and Diagnostic Testing Benefit (sold with AIA Starter Plans) are increasing.
From 20 November 2024, existing business premiums for AIA Private Health, AIA Cancer Care, AIA Starter Plans, and closed Sovereign and ASB Health policies are increasing on policy anniversaries.
From 1 January 2025, existing business premiums for closed AIA (ex-Branch) Health products are increasing on policy anniversaries.

Note that premium increases are in addition to any applicable age-related increases.

Sustainable value for customers
We have absorbed as much of the rising costs as we can and are working hard on solutions to ensure the sustainability of our products for all New Zealanders. One way we are doing this is through AIA Vitality, a science-backed health and wellbeing programme that encourages and rewards members to live a healthier lifestyle. For example, AIA Vitality encourages members to complete a range of preventative screening measures and provides a 10% health insurance premium discount in the first year that can increase up to 20% depending on member engagement in the programme.

For all the details, please see the FAQs here.

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