HONG KONG, May 23, 2023 /PRNewswire/ -- Bowtie aims to provide customers with worry-free automatic upgrade protection from the day they started enrolling in Bowtie Voluntary Health Insurance Scheme (VHIS). To learn more about the market changes and customer needs, we conducted 240,000 underwriting, handled 30,000 claims cases, performed 274 times website design updates, and numerous customer interviews and internal discussions in the past four years. With the data, we have decided to further upgrade its VHIS and services.

Two Reasons for Bowtie to Commit in Product Upgrade

1.  We value customer feedback.

2.  We believe only medical insurance with constant upgrades can help customers with increasing medical cost.

Bowtie prioritizes customer feedback; and customers' recommendations allow Bowtie to excel

Bowtie actively listens to customers' needs at various events and occasions, both online and offline. In 2022, the company conducted over 150 customer interviews, adopted customer feedback, and improved the products accordingly.

In return, satisfied customers recommended Bowtie to their friends and family, making us the top insurer with most sales from insurance direct sales channel in these two years. In fact, Bowtie's sales have excelled that of all insurance companies in the past six quarters.

When medical costs are growing, only a keep-to-update product could help

The Health Bureau expects that total healthcare expenditure in Hong Kong will increase 3.6 times between 2004 and 2033. This means that in 10 years, the average medical expenses per person in Hong Kong will be HK$37,600.

In 10 years, the average medical expenses per person in Hong Kong will be HK$37,600
	2004	2033	Changes	Annual Growth Rate
Gross Domestic Product (GDP) (in billions)	HK$12,870	HK$34,130	+165 %	+3.4 %
Total healthcare expenditure (in billions)	HK$678	HK$3,152	+365 %	+5.4 %

"As medical expenses continue to rise, the pressure on public hospitals is increasing. Citizens should consider VHIS as a safety net," once said former Financial Secretary and current Bowtie senior advisor, John Tsang, who has always been concerned about social welfare and how VHIS can fill the gaps in medical coverage.

Bowtie share the same belief with him and hope that citizens can get sufficient protection at an affordable price. Therefore, Bowtie has always balanced the price and coverage scope when upgrading its Voluntary Health Insurance.

In fact, before launching VHIS, Bowtie has carefully balanced the long-term impact of benefit items on premiums, deliberately excluding items that seemed attractive but were not necessarily practical and could potentially cause future premium increases.

We are committed to setting the average out-of-pocket medical expenses for our customers within the range of HK$10,000. This average out-of-pocket amount is lower than the average monthly salary of Hong Kong citizens, which significantly reduces the economic pressure caused by sudden medical expenses and avoids the risk of a significant increase in premiums.

In addition, we have always used technology to reduce costs while increasing efficiency. Even though the number of claims cases in 2022 was four times higher than in 2021, the claims processing speed remained the same, and the average out-of-pocket amount for VHIS claims remained at HK$2,969, which is in line with Bowtie's product positioning goal.

VHIS Upgrades in the past four years

2023
April	Launched the "No-Claims Rewards Program – BowtieCash" Customers who have no claims record for six months after policy is in effect could earn BowtieCash which could be used to Settle medical costs that exceed coverage. The program requires a shorter no-claims period compared to similar plans in the market.
	Expanded the "24-hour worldwide emergency assistance service" to all VHIS plans As travel restrictions are easing, we are extending the "24-hour worldwide emergency assistance service," which was previously only available to high-end medical insurance customers of other insurance companies, to all levels of Bowtie VHIS customers.
	Increased the Benefit Limit for Bowtie Pink (Private) The benefit limit is upgrade from HK$10 million to HK$20 million per year and from HK$50 million to HK$80 million for lifetime, while premiums remain.
	Enhanced the terms and conditions of all levels of Bowtie VHIS plans Revised the waiting period for pre-existing conditions under Bowtie Pink and Bowtie VHIS Flexi from one year to 180 days, allowing insured persons to obtain 100% coverage earlier. Also, to provide greater flexibility for insured persons of Bowtie Pink as they age, we simplified the mechanism to reduce deductible. Current mechanism is more age-based.
2022
September	Upgraded Bowtie Pink for the 1st time In respond to customers' feedback, we upgraded Bowtie Pink's Day case procedure cash benefit by 62.5%, the numbers of visit for pre- and post-confinement / Day case procedure outpatient care, and reduced the waiting period for pre-existing conditions to one year.
April	Upgraded Bowtie VHIS Flexi for the 2nd consecutive year After a study to the claim data, Bowtie upgrade the benefit limit for Surgeon's fee by 20%, Basic coverage by 5% to 29%, pre- and post-confinement / Day case procedure outpatient care from 18% to 55%.
February	Added coverage for COVID-19 testing In response to market demand, and introduced this coverage during the fifth wave of the pandemic to encourage early detection
2021
July	Established the "Bowtie & JP Health" to provide health checkups for customers. As part of our commitment to providing dedicated health protection for our customers, we established the Bowtie & JP Health to encourage early health management. Over 1,300 customers have undergone physical check-ups in this center.
April	Launched the "Bowtie & Gleneagles Hospital Hong Kong Wellness Package" package in collaboration with Gleneagles Hospital To meet the diverse needs of our customers, we have added this optional insurance rider, allowing customers to flexibly expand their coverage according to individual needs and capabilities.
	1st Upgrade on VHIS Thanks to technological advancements reducing operating costs, we have automatically increased individual benefit limits and added new benefits items to our customers. At the same time, we have increased the reimbursement ratio to reduce the amount customers are required to pay after making a claim
2020
February	Offered free protection for medical professionals and their families during the first wave of the pandemic
January	Provided additional coverage for COVID-19 to customers

Introduction to Bowtie VHIS Plans

Bowtie VHIS series consists of three levels: Standard Plan, Flexi Plan, and Bowtie Pink (a high-end VHIS). The annual benefit limit ranges from HK$420,000 to HK$20,000,000, and monthly premiums start from HK$123 to HK$257^, catering to the needs of different individuals.

To enhance outpatient protection for customers, Bowtie also offers free access to the BowtieGo outpatient plan to its VHIS customers, allowing them to receive medical care with promotion. BowtieGo has a network of over 1,300 doctors throughout Hong Kong, Kowloon, and the New Territories.

# According to statistics from the Insurance Authority's Long Term Insurance Business for the full year of 2021 and 2022, Bowtie Life Insurance Company Limited recorded the highest number of new individual life insurance policies sold via online channels (i.e., direct sales) in Hong Kong.

* "No Claims Reward Program - BowtieCash" is not a cash rebate program. This program is only intended to allow eligible customers to use the reward to settle medical costs that exceed coverage.

^ Example based on a 30-year-old non-smoking male subscribing to Bowtie Standard, Flexi, or Bowtie Pink (Semi-Private) with an HK$80,000 deductible plan.

Source: Bowtie Life Insurance Company Limited