Review on Integrated Shield Plan Distribution Model and Impact on Overall Healthcare Costs

Mr Yip Hon Weng asked the Coordinating Minister for Social Policies and Minister for Health (a) whether the Ministry will review the current Integrated Shield Plan distribution model, including commission structures, to assess their impact on overall healthcare costs; and (b) whether a direct-purchase insurance model can be introduced to cut out costs incurred from agent commission and to lower the costs of insurance premiums.

The bulk of premiums increases for Integrated Shield Plans are due to claims. Commissions constitute a small part of premiums. Financial advisors play a useful role to help consumers to assess and choose suitable insurance plans according to their needs. Insurers are free to introduce other distribution channels.