SINGAPORE: Insurance advisor company WTW Asia has revealed that nearly half of Singapore’s adult population is grappling with one or more chronic diseases, with the announcement serving as a wake-up call as chronic ailments such as heart disease, cancer, stroke, and diabetes accounted for over 51 per cent of all registered deaths in 2021.
Eva Liu, Head of Strategic Development, Health & Benefits at WTW Asia Pacific, told Singapore Business Review that the impact of this health crisis extends beyond physical well-being, with mental health concerns on the rise. However, these often go unreported due to social stigma and standard exclusions in many local policies, highlighting a need for a comprehensive approach to healthcare.
The concerning prevalence of chronic diseases is predicted to have significant repercussions on medical costs.
Singapore’s insurers have projected an average medical inflation rate of 10.7 per cent for 2024, slightly exceeding the regional average. Ms Liu emphasized the importance of identifying invisible health risks and working collaboratively with insurers to provide support to employees. Employers, in particular, play a crucial role in mitigating these challenges.
According to Ms Liu, key factors driving medical inflation in Singapore include medical tourism, high real estate and staffing costs, and a surge in elective surgeries. The overuse and misuse of healthcare services, often stemming from excessive recommendations by medical practitioners, exacerbate this trend.
To curb escalating medical costs, the Singaporean government has taken steps by publishing benchmark fees for private hospitals. While not mandatory, these benchmarks serve as a tool for insurers to manage medical inflation in the long term.
Ms Liu observed that while most insurers offer well-being add-ons in employer programs, their utilization remains low due to potential duplication and lack of communication. She stressed the need for employers to understand their employees’ needs and collaborate with insurers to develop targeted communication and execution plans.
In addition to rising medical costs, Ms Liu pointed out gaps in Diversity, Equity, and Inclusion (DEI) related coverages in the Asia Pacific region compared to global practices. These gaps include limited support for neurodiversity, menopause-related treatments, and gender-affirming care.
The WTW Asia senior leader urged employers to communicate their corporate goals and DEI agenda, exploring opportunities with insurers to address the specific needs of different employee groups.
As Singapore grapples with the dual challenges of a burgeoning health crisis and escalating medical costs, collaborative efforts between the government, employers, and insurers are crucial to ensuring the well-being of Singaporeans.