SET-listed Bangkok Insurance (BKI) said long Covid may have an ongoing cost impact on the Thai insurance industry as it could increase the value of claims.
Moreover, the rising number of claims may also discourage insurers from issuing health policies to people who have been infected with Covid-19.
BKI's president and chief executive Apisit Anantanatarat said long Covid may pose significant financial risks to Thai health insurers as it will increase the number of claims, especially from general health insurance policies that provide coverage for medical expenses.
He said long Covid is the next great risk for the insurance business, following the impact of Covid-19 policies with a lump-sum payment.
There are already signs of the long Covid impact as some insurers have reportedly refused to sell policies to people who have been infected with the virus, said Mr Apisit.
He said the company does not yet know how grave the financial impact of long Covid will be because there is no study that measures or estimates the economic effects. However, what is certain is that continual medical treatment is needed for patients with long Covid symptoms.
Mr Apisit said claims for medical expenses will increase and impact both life insurers and non-life insurers, especially those that have issued a large number of health insurance policies.
He said such companies must carefully evaluate the impact of long Covid and establish plans accordingly to mitigate risks.
Moreover, the enforcement of the New Health Standard, which came into effect on July 1, has also stopped insurers from cancelling or refusing to renew existing customers' policies unless there is proof of a fraudulent claim, which means insurers need to fully take on long Covid risks.
Mr Apisit says that long Covid may pose a significant financial risk to Thai health insurers as it will increase the number of claims especially from general health insurance policies that provides coverage for medical expenses. (Photo: Nutthawat Wicheanbut)
However, Mr Apisit said that although insurance companies cannot refuse to renew health policies for customers, according to data from the Thai Life Assurance Association the law still allows businesses to adjust regulatory conditions to mitigate increased risks, such as by adding conditions for deductibles and co-payments that allow the insurer to cover 80% of the expenses while the insured pay 20%.
As for BKI, Mr Apisit said the company will experience a limited impact from long Covid as most of the firm's health insurance policies do not focus on coverage for medical expenses for in-patient and out-patient treatments.
Most of BKI's policies provide coverage for serious illnesses such as cancer and dengue fever, he said.