In Latin America, we have seen higher increases in IPMI premiums than the global average. We attribute this to the policyholders' inclination to opt for high-cost healthcare providers, a tendency to seek treatment in the US, and fraudulent activities (i.e. non-disclosure of pre-existing conditions and fraudulent claims by healthcare providers and policyholders).
The traditional distribution channels have also contributed to a higher cost of health insurance. The effect of COVID-19 across the region is still uncertain as on one hand, claims have lowered as people stay at home, but on the other, we could see a significant boom in claims when things become more stable."
Chief Executive Officer for Latin America at Pacific Prime Mexico