Singapore’s compulsory national insurance, MediShield Life, has become the most profitable insurance scheme in the world with a profit margin of 56.82%.

In the five years between 2013 and 2017, the government collected S$6.33 billion and paid out only 43.18% at S$2.73 billion. The remaining profit less expenses is being kept with MediShield Life, under sovereign wealth fund company GIC’s management.

Lee Hsien Loong directly manages the GIC as its permanent chairman, a position he inherited from his father Lee Kuan Yew.

Despite making huge profits off MediShield Life, the government has no intent to use the unused S$3.59 billion funds to pay the national healthcare bill like medical subsidies or building hospital facilities.

Each year, the managing statutory board, CPF Board, gets paid S$1.8 billion on average and paid out only less than half of the collected premiums at around S$800 million. As the year goes by, around S$1 billion of unused fund is added into MediShield Life.

Year Premiums Collected Paid out Loss Ratio “Reserves” for future claims
2013 $770 $335 44% $366
2014 $723 $381 53% $331
2015 $1,099 $437 40% $569
2016 $1,858 $745 40% $1,182
2017 $1,882 $836 44% $969
5 years total $6,332 $2,734 43% $3,417

All values in million

Compared to other insurance funds in the world, it is industrial practice to pay out at least 80% of claims and healthcare improvements. MediShield Life however did not put a single cent in improving healthcare facilities, and instead kept the money for “future claims” – which itself is a paradox as claims and collections are assessed yearly.

The Singapore government obfuscate the term “loss ratio”, and included “reserves” to its “losses”. The corrupted CPF Board also covered up vital financial information like expenses on administration, salaries and investment returns of its hefty “reserves”. There is also no further financial declaration in 2018 or 2019.