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Alarming boom in health insurance sales
   CCTV.COM   2003-05-17 09:05:04   
    Seeing business opportunity from the outbreak of SARS, most insurance companies have adopted various methods to promote the sales of health insurance products. And the sharp spike in the sales of health insurance has brought negative impact to the market.

    According to the latest statistic release, most of the insurers in Beijing had achieved total insurance premiums of 240 million US dollars, up around 70 percent year on year.

    Eleven insurers have launched 17 special insurance products and services for SARS. Even some assets insurers have also accidentally entered into the SARS insurance market.

    "The SARS insurance products have been launched too fast. The insurers don't even have the accurate calculations and statistics. The SARS insurance has been launched only one month since the outbreak of the virus," said Sun Qixiang, head of Insurance Department of Economics Institute of Peking University.

    The insurance expert has also pointed out that SARS insurance doesn't have the requisite figures including loss probabilities and death rates. It is obvious that those insurance firms do not have those figures.

    He also stressed that existing health insurance products already cover the risks brought about by SARS, so it's likely that sometime in the future consumers who bought the SARS insurance products will regret the purchase and feel they have been cheated by the insurance firms.

Editor: Han Ling

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