Underwriting

When applying for health insurance, you will often encounter the term underwriting. For expats, understanding this process is essential because it determines whether you get approved for coverage, what conditions are included or excluded, and how much you’ll pay in premiums.

What Is Underwriting?

Underwriting is the process insurers use to assess risk before issuing a policy. It involves reviewing your medical history, lifestyle, and sometimes occupation or travel patterns to decide:

• If you are eligible for coverage

• Whether any exclusions or restrictions should apply

• What premium rate (or additional loading) you’ll be charged

Types of Underwriting in Health Insurance

1. Full Medical Underwriting (FMU):

• Requires you to disclose your entire medical history.

• Insurer may apply exclusions, loadings, or waiting periods based on disclosed conditions.

• Provides transparency upfront—no surprises later.

2. Moratorium Underwriting:

• No full medical history required at the start.

• Pre-existing conditions are automatically excluded for a set period (usually 24 months).

• If no symptoms, treatment, or medication occur during that time, some conditions may be covered later.

3. Medical History Disregarded (MHD):

• Typically available only in group or corporate plans.

• All pre-existing conditions are covered without assessment.

• Highly valued by expats joining employer-sponsored schemes.

Why Underwriting Matters for Expats

• Access to Coverage: Determines whether pre-existing conditions will be covered or excluded.

• Cost of Premiums: Insurers may apply loadings (higher premiums) for certain risks.

• Transparency: Helps you understand limits before making claims abroad.

• Mobility: Underwriting rules differ across insurers and countries—important if you plan to relocate.

Tips for Expats Going Through Underwriting

1. Be Honest: Always disclose medical history accurately. Non-disclosure can lead to claim rejections.

2. Compare Options: Some insurers may exclude conditions, while others apply loadings or waiting periods—your broker can help you find the best fit.

3. Plan Ahead: If you’re considering starting a family or managing a chronic condition, ensure coverage is in place early.

4. Use a Broker’s Expertise: Brokers can negotiate with insurers, request medical reviews, and explain underwriting decisions clearly.

Underwriting is the insurer’s way of balancing risk, but for expats it’s also an opportunity to secure the right protection. By understanding how it works—and choosing the underwriting approach that suits your situation—you can make sure your coverage meets both your health needs and your budget.