Health in­surance ex­pected to grow dra­mat­i­cally

China Daily (USA) - - NEWS CAPSULE -

China’s pri­vate health in­surance mar­ket will grow five­fold to $167 bil­lion by 2020, fueled by fast grow­ing de­mand from the emerg­ing mid­dle class, a re­port said.

As wealthy Chi­nese look for al­ter­na­tives to the pub­lic in­surance sys­tem, pri­vate health in­surance has been grow­ing at a com­pound an­nual growth rate of 36 per­cent since 2010, ac­cord­ing to the re­port, which was jointly com­piled by The Bos­ton Con­sult­ing Group and Mu­nich Re.

The fastest growth in the pri­vate health in­surance sec­tor is ex­pected to be in re­im­burse­ment poli­cies, which are more ex­pen­sive but more flex­i­ble than the crit­i­cal-ill­ness poli­cies that many Chi­nese have to­day.

Re­im­burse­ment in­surance pays on an on­go­ing ba­sis if a health prob­lem re­quires mul­ti­ple med­i­cal con­sul­ta­tions or hospi­tal vis­its. Crit­i­cal-ill­ness poli­cies pay a lump sum if a per­son is di­ag­nosed with a cov­ered con­di­tion.

PRO­VIDED TO CHINA DAILY

Thou­sands flock to a beach in Dalian in north­east­ern China’s Liaon­ing province to es­cape tem­per­a­tures in the 90s on Sun­day.

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