China Commercial Health Insurance White Paper

Article Synopsis :

China’s got a problem with its health and it knows it. This paper says the commercial health insurance market is about to explode as a result of increasing consumer demand, changing demographics and underpinned by government policies.

China presents great opportunities

Increasingly grey areas

The nation is expected to have 329 million people aged 65 or more by the midpoint of the century. This includes a population of 120 million people aged over 80 years of age.

This ageing demographic, coupled with growing middle classes, urbanisation and increasing numbers of patients with chronic disease place considerable strain on its health system.

Room for rapid growth

The China Insurance Regulatory Commission says gross premium income for China’s insurance market was RMB 3,658.101 billion in 2017 (about US$547 billion as of the end of March 2019). Yet premia from health insurance made up only 12% of the market.

Though health insurance has grown by more than 40% between 2013 and 2017, it is dwarfed by life (58.7%) and property insurance (26.9%).

Tailored for the individual and their family

The paper asserts that health cover will increasingly seek to meet the needs of both individual customers and families.

Greater efficiency will come from having a closed loop system between provider and patient. This will force greater professionalism, moving away from traditional life/.property models.

Everyone’s a winner

Increased provision of private cover will take the pressure of national and local resources, benefiting both private and public bodies. Private provision also encourages intervention and engagement on the part of patients. This, in turn, improves behaviour and reduces risk – a win/win situation for the patient, insurer and health authority.

It’s all about the numbers

Data will be as crucial here as any other region. The platform that successfully brings together both sides and integrates external data into the medical channel will found the core of the new ecosystem, with a sustainable business model.

Implementing developments from AI, blockchain, big data, social media networks wearable devices and cloud computing will allow innovation to continue to improve the delivery of health services to this rapidly growing – and ageing – population.

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