Key drivers shaping international health insurance premiums in China

The key drivers behind the state of international health insurance premiums in China are that insurers are more capable of differentiating high-cost providers and the government is setting new regulations that have an effect on medical costs.

Premiums in China are going through a correction phase

One of the main reasons why China's premiums are going through a correct phase is that a number of insurers have become better at determining high-cost providers in their hospital networks. Omitting high-cost providers and providing coverage at standard private clinics allows insurers to offer a cheaper plan.

Premiums in China are going through a correction phase

15% mark-up on drugs removed

Another reason explaining the decrease in China's average premium this year could be that the Chinese government removed the 15% mark-up on drugs provided by public hospitals. They also set regulations to limit the number of people involved in medical and pharmaceutical distribution, thereby reducing medical product costs as well.

15% mark-up on drugs removed
international health insurance

Key drivers shaping international health insurance premiums globally

Increased demand for international quality private care

Changes in demographics, such as the growth of High Net Worth and Ultra High Net Worth individuals, continue to play a major role in the growing demand for private healthcare, thereby causing a significant growth in medical costs.

Increased demand for international quality private care

Increased cost of healthcare

The global phenomenon for 2019 is that medical rates greatly outpace general inflation. Some of the primary medical cost drivers include population aging, poor lifestyle habits, and declining health.

Increased cost of healthcare

Increased regulation

Insurers around the world are dealing with the ever-evolving and expanding regulatory requirements. Some changes to regulations are due to consultations with key stakeholders, while others seem to be a result of enforcement rather than negotiation.

Coverage plan gap

Increased challenges with fraud regulation

An increasing amount of insurers are using technology to improve their anti-fraud processes, which could have an upward impact on premiums at the beginning. However, it will hopefully have a downward effect on premiums later on due to the dramatic drop in medical insurance fraud.

Increased challenges with fraud regulation

The rise of insurtech

The growing use of technology in the insurance industry is both transforming and disrupting IPMI plans across the globe. Insurtech presents many opportunities for cost savings and loss prevention.

The rise of insurtech

What is the cost of
international health insurance
in China and Asia?

China comes in at 11th place for most expensive countries for individual IPMI. China experienced a 7% decline in the average cost of international health insurance for individuals, dropping from USD $4,633 in 2018 to USD $4,324 in 2019. For family IPMI, China experienced a 3% decline from USD $13,802 in 2018 to USD $13,422 in 2019.
Top 5 most expensive countries for individual and family health insurance in Asia
Average individual premium in 2019 (USD)
1. Hong Kong - USD $5,738
2. Singapore - USD $5,458
3. China - USD $4,324
4. Australia - USD $4,262
5. New Zealand - USD $4,061
Average family premium in 2019 (USD)
1. Hong Kong - USD $17,140
2. Singapore - USD $15,055
3. China - USD $13,422
4. Australia - USD $12,620
5. New Zealand - USD $12,012
Cost of International Health Insurance in China Report - 2019
Cost of International Health Insurance in China Report - 2019

An in-depth look at our key findings

A notable number of countries have witnessed increased premiums and rankings

97% of the countries in the report have witnessed a growth in premiums since last year, with just three countries witnessing a decline. Australia and Singapore experienced significant jumps in both individual and family plan rankings, while Canada replaced Hong Kong as the second most expensive country for IPMI.

The Americas is a dominant region in the top 20 most expensive countries

The Americas remains a dominant region in the top 20 most expensive countries. Some countries share the same ranking since they have the same average premium. Reasons for the region’s dominance include increasing demand for IPMI products, higher medical costs, and insurers tend to group countries with similar characteristics and use the same premium.

China’s premiums are going through correction after years of increase

After years of significant increases, China is now witnessing a correction period. This year, several prominent insurers in the country did not increase their premium. In fact, others even reduced their premium, which caused a decrease in individual and family premiums.

African countries have some of the highest premium inflation rates

21 countries in Africa witnessed inflation rates of at least 15% for individual plans, while another 10 saw inflation rates of 15% or higher for family plans. Factors that play a role in inflation in the region include higher disposable income and a growing middle-class population.

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