What might indicate a higher risk, affecting future policy terms?

A history of frequent claims is a strong indicator of higher risk when it comes to health insurance underwriting. Insurers evaluate the claim history of applicants to determine how likely they are to file future claims. If an individual has submitted multiple claims in the past, it suggests that they may have ongoing health issues or a pattern of behavior that leads to increased healthcare costs. This pattern raises concerns for insurers, as it implies that the individual is more likely to require medical services in the future, potentially leading to higher payouts for the insurance company.

Moreover, underwriters assess this claim history to make informed decisions about policy terms. Frequent claims may result in higher premiums, exclusions for certain conditions, or even the denial of coverage altogether. Insurers aim to mitigate their financial risk, and a track record of many claims flags an applicant as someone who may pose a greater financial risk to the company.

In comparison, options like having a history of infrequent claims or a good payment history suggest responsible behavior and lower risk, while a balanced portfolio of policies may indicate diversity in coverage but does not speak directly to claim history or risk assessment. These factors are generally viewed positively and would not contribute to increasing risk as frequently claimed benefits do.