In "Major Banks," China International Capital Corporation (CICC) states that the development of commercial health insurance in mainland China is expected to usher in a new era, focusing on four key areas
Insurance stocks were favored today, with China Life (02628.HK) rising 5.5% to HKD 33.96, Ping An (02318.HK) up 2.5%, Taikang (02601.HK) up 2.8%, and AIA (01299.HK) increasing 3.9% to HKD 86.25.
CICC recently released a report stating that last Thursday (22nd), the China Insurance Industry Association, the China Actuarial Society, and China Banking and Insurance Regulatory Commission jointly issued a document aimed at improving key infrastructure in commercial health insurance pricing data, product design, drug catalog, information sharing, etc., based on their respective functions. The China Banking and Insurance Asset Management Association also issued a statement confirming the insurance industry's long-term investment support for the healthcare sector. The report discussed how commercial health insurance has fallen into a dilemma of "low product value creation and fundraising efficiency - insufficient payment capacity unable to leverage medical resources - difficulty in enhancing product value creation and fundraising efficiency" due to various long-standing top-down obstacles. The report believes that this policy combination directly addresses the main bottlenecks and will effectively guide the industry towards a positive feedback loop, opening a new era of development.
The report suggests that the four departments in mainland China have issued documents targeting the "pain points" to break through the bottlenecks and dilemmas in health insurance development.
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The China Insurance Industry Association promotes the formulation of model clauses for commercial health insurance and a payment list for drug guarantees, standardizing product design, enriching guarantee supply, and promoting ecological collaboration among the insurance, healthcare, and pharmaceutical industries.
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The China Actuarial Society advances the formulation of net cost tables for commercial health insurance and benefit insurance, innovating drug cost estimation and analysis, filling the data gap in industry pricing, and enhancing the industry's risk quantification and scientific pricing capabilities.
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The China Banking and Insurance Regulatory Commission promotes the optimization of intelligent checks for health insurance products, integration of medical insurance and commercial insurance data, construction of health insurance data standard systems, and upgrading of platform infrastructure to solve the problems of data silos and weak infrastructure.
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The China Banking and Insurance Asset Management Association guides insurance funds to support the development of healthcare, health, and elderly care industries, injecting more patient capital into the industry's long-term development.
CICC recommends focusing on investment opportunities in the following areas: (1) Leading internet platforms and super-large insurance groups committed to and with the potential to build a systematic project for commercial insurance payment; (2) Leading brokerage channels and related entities deeply engaged in the corporate group insurance sector with higher fundraising efficiency; (3) Reinsurance companies and insurance companies continuously enhancing health insurance operational capabilities or benefiting from the development of the health insurance market; (4) Pharmaceutical upstream and downstream enterprises benefiting from the incremental commercial insurance payments (innovative drug and medical device companies, retail medical service institutions, etc.)
