Companies banking on health insurance boom

Companies are banking on China's booming health insurance, aiming to provide new services and solutions in the sector.

Shanzhen, a Shanghai-based health service platform, is seeking to become a leading supplier of health insurance risk control and health services by working with industry players and utilizing its health data and technology capabilities.

Wu Hongxing, its founder and CEO, told the second Lujiazui International Reinsurance Conference that the country’s health insurance segment is at a time of “structural change.”

From January to September, health insurance premiums reached 666.6 billion yuan (US$99.3 billion), an increase of 17.4 percent over the same period last year, exceeding the average growth rate of the whole industry, according to data from the China Banking and Insurance Regulatory Commission.

“The fundamental driving force for the vigorous development of health insurance is the aging of the population,” Wu said.

Insurance companies and insurance technology firms are betting big on data-driven offerings as people have more awareness for insurance services, Wu said.

Haiwei, a wholly-owned subsidiary of Shanzhen, has participated in the design of customized supplementary medical insurance in cities that include Suzhou, Hangzhou and Beijing.

GL Ventures said it believes that in the health field, there is still a very large space for health service firms to play.

“We are optimistic about the prospect of the health insurance sector, which boasts the largest market share and will meet the needs of the general public,” Wang Bei, a partner of GL Ventures said.

Beyond its immediate economic and social impact, the coronavirus outbreak will lead to long-lasting changes and new business models within China's health insurance system by increasing the commercialization of health-care services and causing insurers to rethink their health strategy, according to a report by Moody's Investors Service.