A thriving ¥1 trillion Chinese market? Private health insurance tipped to flourish as middle class grows
More mainlanders willing to pay for alternatives to the ailing public health system, consulting group finds
Priscilla Zhao, an office worker in Beijing, did not consider getting private health insurance until she gave birth to her son last year and he needed hospital treatment for a congenital gastric obstruction.
She admitted him to a public hospital and after enduring crowded group wards and a visiting schedule that only let her see him twice a week, she decided to buy private health insurance. She pays 16,000 yuan (HK$18,670) a year but the policy gives her the option of avoiding a repeat of her son’s hospital experience in the future.
“It is very expensive, but I am very glad I don’t need to wait for a long time to take my son to a doctor [for treatment],” Zhao said.
It is very expensive, but I am very glad I don’t need to wait for a long time to take my son to a doctor
As incomes rise, many mainland residents are seeking out better quality care than that provided by public hospitals. They want easier ways to book appointments, shorter waits and greater individual attention from doctors.
The demand is expected to drive the market to 1.1 trillion yuan in 2020 from 241 billion yuan last year, according to a report by the Boston Consulting Group and reinsurer Munich RE, released yesterday.
“The penetration of the market is increasing. If you look at other markets in the world, such as Australia, it’s one in two who have private health insurance, but it’s one in 20 in China,” said Tjun Tang, senior partner and a managing director of BCG.
“The middle class is growing from 100 million households to 200 million.”