The evolution and challenges of health insurance in China
2020 was an unprecedented year, with COVID-19 causing global disruptions. However, as more than 150 countries from across the world begins to roll-out mass vaccination programs, we are starting to see the light at the end of the tunnel. The International Monetary Fund predicts the global economy to rebound by a record six percent this year. Unsurprisingly, China is expected to lead the global economic recovery in post-pandemic times. Together, the recovery of trade, manufacturing and domestic consumption will drive strong growth in insurance demand in the Chinese market.
Nevertheless, the COVID-19 pandemic and the ensuing recession have transformed the economy and our daily lives. From the reorganisation of global supply chains to the acceleration of digitalisation, and even the way we work and interact with colleagues and business partners, these are changes that we must bear in mind as we begin to explore new opportunities presented by the economic recovery.
The Urban Customized Supplementary Medical Insurance “Huiminbao” has proliferated in recent years. The design, operation, and the “Huiminbao” product itself will have a long-term impact on China’s medical insurance market. For example, promoting the integration of commercial insurance, facilitate data interoperability, as well as increase information symmetry, transparency, and involving more market participants.
The new definition of critical illness introduced in early 2021 has invigorated critical illness insurance. For P&C insurers, it is important that they analyse their strengths and weaknesses to develop differentiated short-term critical illness insurance products and capture this new opportunity.
Insurtech has been a hot topic for a number of years. When properly integrated into daily operations, it can improve risk management and enhance customer experience, ultimately helping companies to stand out in a highly competitive market.