Since Pacific Prime starting offering high end health insurance to locals in China it has been seeing mixed demand. Most international health insurers in the region such as AXA, PPP, Bupa International and Cigna have teamed up with local providers to offer comprehensive medical plans. However, these plans haven’t been performing as well as expected.
Pacific Prime works closely with these insurers and while some are curtailing their business others are remaining positive and moving ahead with new solutions to target the market in China.
Pacific Prime teamed up with ICBC AXA in China to offer their clients a high-end insurance policy, China Executive Plan, in December 2011. The plan offered benefits at lower costs than typical expat health insurance policies. However, this month the company has announced the plan will be discontinued, possibly due to an unsuccessful take-up rate and a lower financial performance than expected.
In Pacific Prime’s opinion, local intermediaries and potential clients need to be better informed of the benefits of a high quality insurance solution before take-up rates will improve.
There is a steadily growing demand from high net worth individuals in China, which is likely to result in a sophisticated local market, it is just a question of when. Cigna is hoping the time is now and is launching a new policy this month.
The increasing range and refinement of plans available to expats and local Chinese will continue to grow and develop the potential in this huge market.