Clients will soon be faced with a lot more options in front of them with different levels of cover to choose from.
(PRWEB) September 12, 2013
A recent study from Roland Berger Strategy Consultants predicts that the health insurance industry in Southeast Asia will grow to US$24 billion by 2020 – four times the estimated $6 billion value back in 2010 – at a compound annual growth rate of 15%. Pacific Prime analysts have weighed in on the study, stating that clients are likely to benefit from the growth in the sector as competition brings new and improved health care options, although customers will also be faced with an increasingly complicated buying process with more options on the market.
“The good news is that with growth comes competition, meaning that services will improve and there will be new and better options for clients to choose from,” said Owen Ryan, CCO at Pacific Prime.
“The downside is that while the increase of high net worth citizens means that more first-class medical treatments will become available, it also means that premiums will increase as well," Ryan added. Healthcare premiums are growing faster in Southeast Asia than anywhere else in the world, with many hospitals in SE Asia already displaying higher treatment costs than comparable US facilities.
The health insurance industry in Singapore, in particular, is expected to increase fourfold by 2020, reaching a value of $6.8 billion. Ryan explained that Singapore saw the highest levels of health insurance premium inflation over the last twelve months out of any country in Southeast Asia, and it is projected that an average person's annual spending on healthcare in Singapore will increase by more than 80% to $3,232 in 2020.
“However, there will be eventually be more cost-effective insurance plans on the market to balance this, which is good,” Ryan continued. In Southeast Asia, group corporate policies – including the upper-end of SMEs, large domestic corporates, and multinationals – are expected to increase in market share from 20-25% in 2010 to 35-45% by 2020.
An increase in available options for clients also means a more complex process for choosing a plan however. “It does complicate the process of choosing a plan,” Ryan added. “Clients will soon be faced with a lot more options in front of them with different levels of cover to choose from.”