Innovation in insurance: Bowtie’s answer to enhanced critical illness coverage

In December, Bowtie announced the launch of its Term Critical Illness (CI) Insurance product, the Bowtie Term CI Early Stage and Multiple Cover. The offering was rated as a top product by independent third-party insurance comparison platform 10Life shortly after it was launched, according to a press release.

The owner of the product, Mingo Tsang, explained the design concept and advantages of Bowtie’s latest offering in an interview. Tsang noted the driving force behind the market’s inclination towards CI insurance with saving components.

“Excluding commission factors, they indeed offer a broader coverage, providing multiple coverage, and coverage for early-stage critical illnesses,” said Tsang. “On the other hand, term critical illness insurance, lacking a savings component, offers relatively simple coverage.”

Drawing from research and analysis of over 40 critical illness insurance policies, Tsang identified three critical loopholes that could potentially jeopardize policyholders’ benefits:

• Limited coverage for early-stage critical illnesses: Some policies only offer partial coverage for early-stage critical illnesses, leaving policyholders vulnerable to inadequate protection in the event of severe illnesses.
• Narrow definitions: Certain policies, while claiming to cover endovascular procedures, restrict coverage to specific procedures, thereby limiting the scope of protection for policyholders.
• Misleading “unlimited” coverage: Despite boasting unlimited multiple critical illness claims, some policies fail to cover relapse cases, rendering the purported coverage meaningless.

Outstanding features in innovative CI product

Tsang conducted personal interviews with over 30 Bowtie customers to gauge their expectations and willingness to invest in enhanced coverage. The feedback underscored customers’ readiness to pay an additional premium of 10% to 15% for extended coverage. After gaining some enlightenment from user feedback, Bowtie’s development team worked on its new Early and Multiple Critical Illness Insurance. The product, released in December, includes the following coverage:

• Comprehensive coverage: Coverage for both early-stage and severe critical illnesses, encompassing the most prevalent ailments and medical conditions
• Multiple claims: Policyholders are allowed to make multiple claims for both early-stage and severe critical illnesses, up to five times each, ensuring sustained financial protection
• Additional payouts: Provides additional payouts for early-stage critical illnesses and full payouts for severe critical illnesses, totaling 120% of the sum-insured

Tsang described Bowtie’s latest offering as “high-end protection at an affordable price for everyone.” A press release said the product is aligned with the company’s vision of “Just Fit protection”—the product strikes a balance between comprehensive coverage and affordability.

Bowtie is backed by Sun Life Financial, Mitsui & Co, and leading international investors. It offers products including voluntary health insurance scheme, life insurance, and CI insurance, among others.

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