Pacific Cross Announces 2025 Rate Adjustments: What It Means for Policyholders
Pacific Cross has announced its 2025 premium rate adjustments, with an average 6% increase on most medical products, effective April 1, 2025. This adjustment comes as medical inflation in Asia continues to rise, averaging 12.1% across the region. Notably, there will be no increases for policyholders aged 4-40 and those aged 86 and above, and certain benefits — including dental, vision, and personal accident coverage — will remain unchanged.
Alongside these pricing updates, Pacific Cross has also announced a territorial loading increase for policyholders in Singapore and Hong Kong, rising from 30% to 35%. These changes reflect the ongoing challenges of rising healthcare costs in key high-cost locations.
Additionally, Pacific Cross recently disclosed that Paramount Life & General Insurance Corporation (“Paramount”) is acquiring Pacific Cross International, potentially reshaping the company’s position in the international health insurance market. The details of this acquisition remain limited at this stage, with no official announcements available online.
READ MORE >> One World Cover 2025 Medical Trend Report
Understanding Pacific Cross’s Individual Experience-Rated Model
One unique aspect of Pacific Cross’s renewal pricing structure — and something that prospective customers should be aware of — is that even their individual plans are experience-rated. Unlike most high-end international health insurers that pool risk across a wider portfolio, Pacific Cross calculates premiums based on an individual’s own claims history. This can lead to more volatile pricing year-over-year, particularly for individuals with significant medical claims.
While this model can sometimes work in favor of policyholders with low claims, it lacks the predictability of community-rated or pooled group health insurance plans. For those considering a Pacific Cross policy, it’s essential to factor in the potential for fluctuating renewal costs based on personal claims experience.
What the Paramount Acquisition Could Mean for Pacific Cross Customers
Pacific Cross has revealed that Paramount Life & General Insurance Corporation (“Paramount”) is acquiring Pacific Cross International and its associated businesses across Indonesia, Thailand, the Philippines, and Vietnam.
Paramount, a well-established Philippine-based insurer with a history dating back to 1950, has a strong presence in life and health insurance. While the acquisition is being positioned as a move to strengthen Pacific Cross’s stability and growth, it remains unclear how this transition will affect policyholders in the long run.
Potential implications of the acquisition:
- Financial Stability and Growth: Paramount’s backing could provide greater financial security for Pacific Cross, potentially improving underwriting capacity and long-term sustainability.
- Operational Changes: The integration process could bring policy and service updates as the two insurers align business models.
- Potential Future Rate Adjustments: While no immediate changes have been announced beyond the 2025 rate update, acquisitions often result in pricing and product structure changes down the line.
Should Businesses and Individuals Be Concerned?
For existing Pacific Cross customers, the 2025 rate adjustments are relatively moderate compared to the market trend. However, for businesses and individuals evaluating long-term stability, the acquisition by Paramount adds an element of uncertainty.
While Pacific Cross’s business remains operational as usual for now, policyholders should keep a close eye on any upcoming changes that may arise from the transition. Additionally, for those considering a high-end international health insurance policy, it’s crucial to understand how Pacific Cross’s experience-rated model differs from pooled or community-rated plans — particularly in terms of renewal pricing stability.
If your organization is considering Pacific Cross as an option for 2025, or if you’re a current policyholder looking for guidance on your renewal, feel free to reach out to One World Cover. Our team is here to help you navigate the evolving health insurance landscape and ensure you’re making the most informed decision possible.
Interested in a quote or renewal consultation? Contact us today.
Michael Pennington, Customer Experience Director, One World Cover – [email protected]
