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