Moratorium Underwriting
Moratorium underwriting is a risk assessment method in international health insurance that dispenses with a health questionnaire: pre-existing conditions from a look-back period before inception (typically five years) are automatically excluded at first and only become covered once the insured person has completed a stability period (usually 24 months) free of symptoms, treatment, medication or medical advice; the assessment takes place only at the point of claim.
Function
The moratorium shifts the risk assessment from the application to the claim. Instead of reviewing a health questionnaire, the insurer agrees a rule: any condition for which symptoms existed or medical advice, treatment or medication was obtained in the look-back period before inception counts as pre-existing and is excluded. Market practice is a five-year look-back; some insurers work with shorter periods of, for example, 24 months. The exclusion falls away once the insured person completes a continuous stability period after inception – usually 24 months – without symptoms, treatment, medication or consultation for that condition. AXA Global Healthcare frames the condition as two years of membership combined with two trouble-free years. If the condition recurs in the meantime, the clock restarts (“rolling moratorium”).
Distinctions
Compared with full medical underwriting, the application is faster and more discreet, but the insured person bears the uncertainty: whether a treatment is covered is decided only at pre-authorisation or claims review on the basis of the medical records obtained at that point. Chronic conditions under ongoing treatment practically never reach the stability period and therefore remain excluded in effect. The moratorium must be distinguished from the general waiting period, which applies to certain benefits (such as maternity) irrespective of medical history.
Practical Note
For healthy applicants without a relevant history, the moratorium is usually the more pragmatic choice. Anyone taking regular medication or attending check-ups should assess the exclusion realistically and consider FMU. On a later change of insurer, it should be clarified whether the new insurer recognises the stability period already completed or whether the moratorium starts afresh.