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11 Flags Hong Kong Insurance Trends

Posted on May 11, 2012 by Sergio Ulloa ()

This Article appeared as a Press Release on Yahoo Finance., an internet based international health insurance advisor, has revealed some unusual trends in the Hong Kong Medical Insurance market today. In a departure from form, expatriates in Hong Kong, Asia's leading financial services center, are eschewing international health insurance options in favor of locally provided Hong Kong Medical insurance products. This is the direct result of more than 10 years of increases in international health insurance premiums at a rate of roughly 10% per year; which themselves are the product of heightened levels of medical inflation in the city. Hong Kong, along with Israel, is the second most expensive place in the world to receive healthcare after the United States of America. In terms of the charges associated with various treatments at Hong Kong's private hospitals examples can be seen in a scenario involving Maternity. Realistically, delivery of a child at a Hospital like the Matlida, Hong Kong's leading maternity services provider, can easily reach HK$ 156,000 - 234,000 (US$ 20,000 - 30,000) even if there are no complications. A private room at this same hospital will run the patient HK$ 5,935 (US$ 761) for a single night. In the last 10 years, the levels of disposable income within Hong Kong's expatriate community have not risen at the same rate as medical inflation, and consequently the premiums charged by international health insurance providers. This is putting pressure on insurance premiums as the loss ratios of not adjusting for the heightened cost of medical care in HKSAR are not economically feasible. With a large proportion of the Hong Kong expatriate community choosing to obtain local health insurance options, rather than their international variants, believes that further evolution of the design of international protection plans available in the city is not far off. Potential restructurings may include the provision of selected service providers given that private medical facilities in the City are amongst the most expensive in the world; leading to less comprehensive healthcare options for individuals but also reduced premium charges. is of the opinion that any innovations within Hong Kong's iPMI market would be an attempt to stem the tide of expatriates choosing to purchase local health insurance options, but would also need to compete with the major players in the local market whilst providing coverage enabling the policyholder to receive treatment options at superior medical facilities in order for developments to be considered a success.
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