More Affordable Peace of Mind Protection

by rbipremium on September 13, 2011

Many consumers are unaware that the specific focus of any commercial insurer is to look after their shareholders and to generate the required shareholder returns. Few focus on their customers’ needs or on trying to save them money. Although the medical insurance industry is highly competitive, they continually seem to raise the cost of coverage and it is you the policy holder that needs to keep paying these disproportionate increases.

Most medical insurance policy holders are not aware of the administrative costs associated with their health coverage and how they affect their premium. They certainly don’t realize that as much as 40 to 50% of the premium they pay is spent on commissions, marketing and general administration costs. So, what does this mean for the average consumer? Basically it means that the real cost of your international medical insurance can be as little as half of the premium you actually pay.

This in turn means that the insurance underwriter is expecting a commercial return after the payment of claims on half of the amount paid by the consumer for their medical coverage. Not only does the insurer have to pay for the cost of settling the claims but also has to pay the cost incurred whilst processing claims and any bank transfer fees. The cost of simply processing even a minor claim usually exceeds US$50 – the reason why most insurers do not cover the first $50 to $80 of any one claim. Complex claims however, requiring third party specialist advice can really mount up to 50-60% of the premium paid to the insurer.

Furthermore, international medical insurers are inclined to sell claims in order to justify the high cost of coverage. However, selling claims typically results in avoidable and unnecessary claims being submitted which reduces profits and shareholder returns. The result – premium price increases. Its not just the medical cost component which is increased, all costs are increased. This is the reason for the 10% per annum medical inflation.

Rbi Premium membership has created a more affordable solution for expatriates. It offers its members free medical insurance as part of the comprehensive lifestyle benefits associated under its program and is able to avoid these huge costs by implementing some very ingenious ideas. No commission is payable on the insurance arranged by Rbi for its members and is promoted as a peace of mind protection as opposed to selling claims. The insurance provided to Rbi members for free is arranged through leading international insurance underwriters that have been assigned an A+ claims paying ability rating which means that they have the capital capacity to meet all eligible claims costs that may be incurred by members. Rbi transacts its business for the benefit of its members who become stakeholders and beneficiaries.

When it comes to claims processing Rbi have the capability to arrange on the spot settlements in real time directly to its specially arranged prepaid cards that work on the Visa and Mastercard networks. Simple and very effective for both the member and treatment provider, and a very inexpensive way for Rbi to finalize member claims.

To understand all the continual changes of the medical insurance industry and to embrace the concept that policies will continue to rise, whilst coverage will continue to be tarnished with restrictions, is becoming a very sour point to many policy holders. Rbi Premium membership seems to avoid this by offering easy solutions to members by effectively lowering medical insurance administrative costs that automatically apply under this unique membership program.

Rbi has no public shareholders as it is a membership program, it doesn’t have a long expensive drawn out claims process and runs its membership program using a fully automated system, lowering operational costs and personnel overheads wherever and whenever they can then passing these savings and benefits on to their members.

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