Chile’s Health Insurers Pushed to Brink of Collapse
Saturday, 08 13 2016, Category: Insurance and Reinsurance, Country: World
Chile’s private health insurers have a peculiar problem. Every time they try to raise their premiums, thousands of their clients take them to court to stop the increase — and win. Their inability to raise fees is denting earnings, pushing one of Chile’s most profitable industries five years ago to the brink of collapse.
Clients filed more than 130,000 injunctions against the companies last year, with judges not only ruling in their favor 100 percent of the time, but also making the insurers pay the legal fees. It cost the companies, known as Isapres, $34 million in 2015, double the amount of a year earlier.
Source: Insurance Journal