Market Insights Financial Insurances Non-life insurances

Health insurance - China

China

The Health insurance market market in China is expected to witness substantial growth in the coming years.
According to projections, the market size, measured by gross written premium, is set to reach US$162.50bn in 2024.
This indicates a significant opportunity for the industry in the country.
Furthermore, the average spending per capita in the Health insurance market market is projected to amount to US$113.40 in 2024.
This suggests that individuals in China are increasingly recognizing the importance of having adequate Health insurance market coverage.
Looking ahead, the gross written premium is anticipated to exhibit a compound annual growth rate (CAGR 2024-2028) of 6.52%.
As a result, the market volume is expected to reach US$209.20bn by 2028.
These numbers underscore the potential for continued expansion and development within the Chinese Health insurance market sector.
It is worth noting that, in comparison to other countries around Worldwide, the United States is expected to generate the highest gross written premium in 2024, amounting to a staggering US$1,607.0bn.
This highlights the dominance of the US market in terms of Health insurance market expenditure.
However, with the projected growth rate and market size in China, it is clear that the country is positioned to become a significant player in the global Health insurance market arena.
China's health insurance market is experiencing rapid growth due to the country's aging population and increasing demand for quality healthcare services.

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Analyst Opinion

The Health insurance market in China has been experiencing significant growth and transformation in recent years.

Customer preferences: Chinese consumers are increasingly valuing health insurance as a means of securing their well-being and financial stability. With rising incomes and awareness of healthcare costs, more individuals are seeking comprehensive insurance coverage to protect themselves and their families.

Trends in the market: One notable trend in the Chinese health insurance market is the shift towards digitalization. Insurers are leveraging technology to offer innovative products, streamline processes, and enhance customer experience. Additionally, there is a growing demand for specialized health insurance products tailored to specific demographics, such as the elderly population or individuals with chronic conditions.

Local special circumstances: The unique demographic landscape in China, characterized by a large aging population and a growing middle class, is driving the evolution of the health insurance market. As the demand for quality healthcare services increases, so does the need for robust insurance coverage to mitigate the financial burden of medical expenses.

Underlying macroeconomic factors: The rapid economic development and urbanization in China are contributing to the expansion of the health insurance market. As more people migrate to cities and access to healthcare improves, the awareness of the importance of health insurance is also on the rise. Moreover, government initiatives to enhance healthcare accessibility and affordability are shaping the regulatory environment and fostering market growth.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.