Increasing HK healthcare costs boost insurance sales

June 15 2017 by InsuranceAsia News Staff

Escalating costs of healthcare have prompted many people in Hong Kong to buy health insurance, new data from the Hong Kong Institute of Insurance Supervision showed.

According to the Hong Kong Medical Insurance Association survey, the number of private and personal health insurance plans rose by more than 300,000 in 2015.

In doing the study, the association gathered business data from 16 of Hong Kong’s major underwriters, which account for 60% of the market share of the health insurance market that year.

The survey explained that the trend can be attributed to the extensive use of medical services and advances in medicine, which in turn make medical costs rise.

Over the past five years, the average growth rates for personal and collective health insurance premiums were pegged at 5.9% and 4.6%, respectively.

This indicates that health insurance still offers a reasonable and stable premium for customers.