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Only 39% of small group policies covering less than 50 employees offer mental health benefits.
For large group policies that cover up to 500 staff, only around half of insurance companies cover mental health conditions.
People today are more digitally connected than ever before and continually seek simplicity, flexibility, and affordability. Individual health customers are no different; they choose plans that are tailored to suit their individual needs and plans that are accessible and easy to understand.
COVID-19 has been one of the largest challenges facing the health insurance sector in China. Lockdown measures and travel restrictions have led to an expat exodus in the first quarter of 2020, thus causing a slowdown in private health insurance sales. In the long run, however, it is anticipated that the pandemic will trigger greater insurance awareness, and potentially lead to an increase in sales.
Foreign companies can now own 100% of insurance licenses. As such, it is expected that more foreign insurers and reinsurers will enter the China market in 2020, thus intensifying competition in the insurance sphere. The insurance companies that win the future will be those that can meet rising customer expectations.
Hiking medical care costs will continue to be a key issue for clients in China. Hospitals in expat-popular cities (e.g. Beijing and Shanghai) will likely continue to increase their prices, especially for large inpatient procedures. The insurance market, however, has been adapting well, with insurers constantly looking for innovative ways to strike the best balance between price and benefits.