$90m ElderShield claims since 2002

I refer to the article “S$90m paid out in ElderShield claims since its 2002 launch” (Channel NewsAsia, Apr 5).

It states that “Around S$90 million has been paid out since ElderShield was launched in 2002, with about 12,500 successful claims.”

How much premiums collected since 2002?

What is the total premiums collected since 2002? About $2 billion (estimate)?

What is the total claims ($90 million) to total premiums ($? billion) ratio?

What was the claims ratio for each of the years, since 2002 of the scheme?

“As at end 2015, there were 1.2 million ElderShield policyholders, or about 65 per cent of the resident population aged 40 to 83”

Tan Kin Lian on “Supplement (product) to ElderShield”

According to Tan Kin Lian’s article “Should I buy a supplement to Eldershield?” (Jan 31, 2016) – “What is a fair payout rate that makes the policy worth buying? The answer is 50% to 70%. If the total claim payout is 50% to 70% of the premium, the insurance product is worth buying.

The average profit ratio is 50%. Allowing for expense ratio of 20%, the long term claim ratio is only 30%. This is extremely high.

Conclusion – the payout for the Eldershield supplement is too low. Consumers are paying too a high premium for a small return.”

Leong Sze Hian