Fall ill less and we’ll pay, says AAR

AAR Insurance Managing Director Caroline Munene gets her vitals checked on May 19, 2015 by AAR nurse Veronica Nderitu as AAR Insurance Holdings chief executive Geoffrey Nzau looks on during the launch of the AAR Proactive insurance which guarantees a 50 per cent return of initial premium if a client does not use it for out-patient services. PHOTO | DIANA NGILA | NATION MEDIA GROUP 

In Summary

• It is estimated that 100,000 people die every year of lifestyle diseases, which could be reduced through better lifestyle choices.
• She said lifestyle diseases were expected to keep increasing if various stakeholders do not take control of the situation.
• According to statistics from Association of Kenya Insurers, the industry paid Sh20 billion to settle medical claims last year, with AAR paying Sh2 billion.

By MWANIKI WAHOME
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Stung by rising medical claims, AAR Insurance has introduced a new health cover with an objective of encouraging people to spend less in hospital in exchange for 50 per cent refund of total premium after three years if not utilised.

The product called Proactive, launched yesterday, is the first in East Africa and second after a similar policy in South Africa.

It recognises that most of the medical claims arise from lifestyle diseases that can be controlled through a regime of good diet, regular exercise and avoiding abuse of alcohol and other substances.

REWARD CUSTOMERS

“We want to reward customers who practise good lifestyles. AAR Proactive seeks to encourage customers to better manage their outpatient spends with the cash back reward in the event they do not utilise their outpatient limit after a period of three years,” AAR Insurance Managing Director Caroline Munene said yesterday.

It is estimated that 100,000 people die every year of lifestyle diseases, which could be reduced through better lifestyle choices.

“This is the revolution that we are bringing to the health insurance which we hope will change the way the insurance cover is structured in Kenya. The solution is out of experience, and it is time customers benefit from premium paid whether they are sick or healthy,” she said.

COMMUNICABLE DISEASES

Ms Munene said the rise in non-communicable diseases such as diabetes, high blood pressure and cancer has led to an increase in medical claims draining huge amounts of money in payment of hospital bills.

She said lifestyle diseases were expected to keep increasing if various stakeholders do not take control of the situation.

“About 70 per cent of the Sh25 billion premium goes to hospitals and other health institutions in treatment and we would want this amount distributed to include the customers,” she said.

According to statistics from Association of Kenya Insurers, the industry paid Sh20 billion to settle medical claims last year, with AAR paying Sh2 billion.

AAR Insurance Holdings chief executive Geoffrey Nzau said lifestyle conditions reduce productivity, curtail faster economic growth, hence aggravating poverty.