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The Insurance Times
access (i.e. reduce the waiting time of the government providers) to a quality health care
services when needed. The following shows details of the result:
Less waiting time Total Population
Quality of medical care / treatment 73%
Decline of public health care 36%
Peace of mind 18%
More need as getting old 15%
Personal attention / consideration 12%
Family to look after / care for 12%
10%
Source: BUPA Research
Disadvantages of medical insurance
Although the insurance industry provides enormous social and economic benefits to
society, the social costs of insurance must also be recognized. The major social costs of
health and life insurance include the following:
Cost of doing business
Insurers consume economic resources such as land, labour, capital, and business
enterprise in providing insurance to society. In financial terms, an expense loading must
be added to the pure premium to cover the expenses incurred by companies in their
daily operations. As per international industry average, operating expenses of medical
insurers account for at least 15 percent of each premium dollar. As a result, the total
costs to society are increased.
314 Guide for Health Insurance
