International health insurance provider Allianz Worldwide Care has recently made its annual premiums adjustment according to movements in currency exchange rates. Allianz Worldwide Care is already one of the insurers with the lowest annual average premiums increases at 7.4%, but in addition, the premium increase in US dollars was only half that of other currencies. As of November 1st, 2013, premiums written in US Dollars have started to be calculated using an exchange rate of US $1.35 against the Euro, not US $1.40, and the international healthcare plans (IHP) in USD increased an average around 3.5%.
Allianz Worldwide Care is one of the few insurance companies that has been adjusting premiums according to currency fluctuation. The still-recent global economic crisis has caused a higher fluctuation of the US Dollar, and thus Allianz has recently reduced the benefit limits and deductible amounts in all policies where benefit limits are stated in USD. The Silver Outpatient plan, for example, has dropped from US $12,700 to US $12,150 while Club Maternity has been reduced from US $7,100 to US $6,750. This measure will help to keep Allianz's USD benefits competitive going forward.
The benefit and deductible amounts in Sterling (GBP) and Swiss Franc (CHF) remain the same, as these amounts are already in line with current market rates.
As stated before, the average premium rates for the international health care plans from Allianz Worldwide Care increased an average of 7.4% this year. According to Allianz, this low premium increase, at a time when medical inflation continues to rise, is due to the effectiveness of Allianz's cost containment practices and their continuing commitment to offering clients affordable healthcare premiums.
With the varying healthcare costs in specific regions. Allianz's premium adjustment is not without some exceptions. Members with the Silver level plan and residents of Vietnam, Thailand and Hong Kong with maternity are likely to see increases more in line with generation medical cost inflation while also receiving benefit reductions due to the prevailing claims performance on the Silver plan.
For Allianz group plans, the inflation rate was 7.5% for premiums written in GBP and EUR, but only 3.6% for those in USD. For Zone M (Libya), the adjustment was 4.69% for GBP and EUR and 1.00% for USD. The increase for out-patient plans varies with the type of plan and the different age brackets.
Every year, international private medical insurance companies make a premium adjustment to their policies. The general benchmark for premium inflation in the IPMI industry is 10%. However, due to Allianz's capacity to make regionally specific premium adjustments, the insurer has been able to have some of the lowest average inflation rates on the market. The previous average adjustment from Allianz was 7.7%, with figures ranging from 0.4% in Kenya to 17.6% in Brazil. According to the Globalsurance International Insurance Review 2013, over the past five years, Allianz had an average inflation rate of 7.6%, the lowest average inflation rate of all insurers considered in the study.