Hong Kong, China (PRWEB) October 07, 2013
Cooper, Claridge-Ware Limited (CCW), a leading Hong Kong based international health insurance brokerage, has released a comprehensive report analysing the sustainability of group medical insurance plans in the current economic climate.
The analysis finds that international group medical insurance plans costing US$ 500,000 today will increase to an approximate cost of US$ 1,000,000 by 2020 – this is based off an average annual increase of 10 per cent, leaving the US$ 500,000 policy costing US$ 974,358 by 2020 and US$ 1,071,794 by 2021.
Michael Lamb, Marketing Director for CCW and the author of the report said “we wanted to explore the options available to businesses in terms of cost containment for their medical insurance coverage in the Asia-Pacific region. Obviously a doubling of group medical insurance premiums over the next 7 years is highly concerning, especially for SME’s trying to recruit and retain vital talent amidst changing employee needs.”
One of the key points raised by the report is the fact that businesses throughout Asia are increasingly hiring a new type of expatriate employee; employees who are often much younger and on much lower benefits packages than their older colleagues. CCW has indicated that this is a major driver for change within the Asian employee benefits landscape as the new breed of modern expat worker has needs and requirements which are different from those which insurance providers have traditionally catered to.
Illustrating this fact, Lamb stated “full blown international private medical insurance (iPMI) products are often unneeded by younger expats who are increasingly happy using the local healthcare services in countries like Hong Kong. However, local health insurance options do not meet the standards of these individuals, or offer key extended benefits like psychiatric and maternity protection which are often received outside the local healthcare services. This has seen the emergence of hybridized products which mix the flexibility of iPMI plans with the affordability of local plans, and can often be tailored to fit the exact needs of a specific company or organization.”
CCW has also indicated an emerging trend whereby health insurance companies and healthcare providers are starting to work together to offer multi-level offerings to expand the options available in relation to group health insurance coverage through innovative partnerships and out-of-country servicing.
The report has concluded that group medical insurance can be sustainable if more flexibility and creativity is introduced to the market in line with the actual needs of companies throughout the Asia-Pacific region.
To view the full report please click Is Group Health Insurance Sustainable?.