Insurer the first to offer 20-year-renewal option

Ping An Health Insurance Company of China unveiled private health cover which provides comprehensive reimbursement of medical expenses and a guaranteed 20-year renewal option.

The product is the first of its kind in the industry with the longest renewal period for the insured.

In November, the China Banking and Insurance Regulatory Commission issued a new version of the Measures for the Administration of Health Insurance — the first major revision since its release in 2006.

It is clearly noted that insurers can adjust the rate of long-term protection plans to cope with the increase of medical expenses caused by medical technology progress, but should notify the trigger conditions for such adjustments in the contract.

The authority also encourages industry players to develop more health insurance products which can offer longer protection for the customers.

With such a supportive regulatory environment in promoting sustainable development of the health insurance segment, CPIC Life and New China Life recently rolled out such products with a respective guaranteed renewal time of 15 years and 10 years.

Currently, the majority of the available private medical covers are just for one year.

In 2018, Alipay introduced a health plan with a guaranteed six-year renewal option.