China’s healthcare insurance industry on the fast-track

 24-Dec-15, China Briefing

Today, over 95% of Chinese citizens are enrolled in various public health insurance plans, thanks to the country’s healthcare reform. However, the scope of public insurance coverage is far less than adequate with low reimbursement rates – patented medicine, usage of high-end medical devices and special needs are usually not covered.

The Chinese government is also concerned with its ability to sustain the social welfare system due to its rapidly aging population. The country just released a proposal to extend its mandatory retirement age, first change since the 1950s, in a move to ease social and fiscal pressures.

Image: China Briefing

The existing gaps in public insurance coverage, together with China’s effort to boost investment in the private healthcare insurance sector, have opened up attractive opportunities for foreign insurance companies.

In 2014, the size of China’s commercial healthcare insurance market totaled RMB 158.7 billion, up 41 percent compared to the previous year. This record was broken in August this year, with the sector’s revenue reaching RMB 160 million from January to August alone.

The average growth rate of the commercial healthcare insurance market is approximately 25 percent since 2000. Now, more than 100 insurance companies are providing commercial healthcare products in China.

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