Study forecasts more supplemental insurance in country

Credit: HelloRF

Caption: An aging population and the coronavirus pandemic have spurred great demand for health protection.

2021 will see more diversified and targeted low-cost, inclusive health insurance plans unveiled for the unserved and underserved Chinese population, according to a recent industry study.

The study, jointly released by Fudan University and Shanzhen Haiwei, a Shanghai-based supplier of health insurance risk control and health services, said Huiminbao, or “insurance designed to improve people's wellbeing,” has so far maintained positive growth momentum after its explosive development during the past year.

Coverage will expand from first and second-tier cities to smaller ones, while product pricing and the scope of protection will become more diversified to cater to the specific demands of different groups, the report predicts.

An aging population and the coronavirus pandemic have spurred great demand for health protection, and led to long-lasting changes and new business models within China's health insurance system.

To ensure the sustainable development of supplemental insurance programs, industry players, including insurance companies and their technology and health management partners, should work together to better control relevant business risks and offer more innovative services to customers, according to the report.

Technology such as big data and artificial intelligence should be applied to insurance product design, marketing, underwriting and claims to help insurers reduce costs and increase their operational efficiency, identify insurance fraud and effectively control risks, the study noted.

Huiminbao plans are essentially supplemental coverage to China’s national medical insurance programs. Priced between 29 (US$4.46) and 190 yuan a year, the plans guarantee medical coverage of up to 3 million yuan.

There are no age or occupational restrictions, and a pre-policy physical examination is not required.

Supplemental insurance has been rolled out in more than 277 cities in 25 provinces, covering more than 30 million people, according to data compiled by huize.com.