In addition to the usual rating changes in our latest database release, we have also conducted a review of our Medical amount scores. Many of the rating items for Medical are based around specific claims scenarios using an assumed claims amount. As a result of Medical inflation, which over the last 4 years has been running at around 9% per year, we have now updated some of the assumptions in the calculation of the ‘Amount’ component of our rating resulting in an overall change in the total rating. We will continue to review all aspect of our ratings to ensure they remain relevant and up to date.
For example:
We have created a scenario where the claims amount is $30,000.
For each insurer we will then examine the policy wording to determine what excess will be deducted and the policy limit per annum.
From claims data we find the average number of visits per year and the average cost per visit.
We use all this information to determine how much is paid in this scenario and convert the number into a percentage that you will see on Quotemonster.