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China Insurance Companies Eye Health Care Institutions

This article was originally published in PharmAsia News

Executive Summary

The health care industry has always considered health insurance as having broad potential for development in China. However, most health insurance companies are grappling with revenue from premiums. According to the China Insurance Regulatory Commission statistics, total revenue of the nation's four specialized health insurance companies - PICC Health Insurance, Ping An Health Insurance, Kunlun Health Insurance and Reward Health Insurance - only reached RMB 13.9 billion ($2.09 billion) in the first 11 months of 2008. One inside source revealed that when the health care reform package is not finalized, running a health insurance business is very risky due to the high payout rate. Even so, many insurance firms are gearing up for the sector as CIRC will permit them to invest in insurance-related health care institutions and elderly support entities. (Click here for more - Chinese Language)
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