Report Description

The China health insurance market is expected to be driven by rising number of chronic diseases, increasing demand for health insurance, and rising government efforts in enhancing insurance coverages. Moreover, growing awareness about the benefits offered by health insurance plans, drive the sustainable growth of health insurance industry in China during the forecast period.

Health insurance is a type of insurance that covers the insured person's medical, surgical, and occasionally dental costs. It guards the insurance holder against unforeseen, exorbitant medical expenses. Before the health insurance is responsible for payment, it is typical for the covered policyholder to assume a share of the risk by covering the initial medical expenses up to an agreed-upon amount.

As health disease cases are spreading across the nation, the government is taking necessary steps to ensure public safety. The Chinese government also focuses on expanding health insurance coverage and enhancing the healthcare system. The development in "Huiminbao" products in China is leading to the development of China’s health insurance industry. In 2021, about 1.36 billion people in China had a basic health insurance, which was more than 95% of the total population. Moreover, Huiminbao is medical insurance, which was launched by local governments and commercial insurance companies, as a supplement to medical insurance to compensate some large or serious medical expenses. Moreover, insurance companies now have better access to latest technologies and they are making better use of big data analytics to deliver better healthcare services, which generates long-term commercial value and has led to increase in the market demand of health insurance in the country.

Huiminbao products are mainly distinguished based on three features i.e., high level of inclusive benefit, a low financial threshold, and broad protection coverage. Middle to low-income residents, particularly seniors and the elderly, benefits from the Huiminbao products. For instance, in 2021, "Beijing Huiminbao" was introduced, which provided citizens with medical insurance of up to USD431 Thousands per year for just USD28 annual premium. Over 3 million clients have been covered since the product debuted on the Waterdrop platform. Beijing Local Financial Supervision and Administration, the Beijing Municipal Medical Insurance Bureau, and the CBIRC's Beijing Supervisory Bureau work together to direct Beijing Huiminbao jointly. Hence, rising government initiatives aimed at the general public's welfare, is expected to increase the market demand for health insurance during the forecast period in China.

Increasing Health Insurance Premiums to Boost the Market Growth

Health insurance premiums are the sums of money that must be paid on a regular basis to an insurer to maintain the policy's validity as well as to receive medical treatment. According to China Business News and Ping An Health Insurance, China's health insurance premiums had exceeded USD143 billion in 2021. As a result, China's health insurance premiums are the most noticeable in the health insurance market, and their percentage has increased every year. Thus, boosting China’s health insurance industry.

Increasing Awareness of Health Risks to Boost the Market

Unhealthy lifestyle choices have led to an increase in the number of people with chronic diseases such as cancer, disease, and diabetes, as well as an increase in the frequency of traffic accidents, among other things. Additionally, rising health risk awareness offers insurance businesses prospects for expansion, especially in the aftermath of Covid-19. China's health system has become increasingly important with a rapidly aging population and increasing income. People are more willing to spend on health-related expenses with an increasing income level. For instance, total health expenditure in China is expected to reach USD 1085 billion, or about 6.6% of gross domestic product (GDP) in 2021.