Li Bin, director of the State Health Services, stated that the grand strategy of “Healthy China 2020” is to focus on personal health, healthcare infrastructures and medical knowledge emphasizing on the peoples’ general healthcare and conditions. The implementation of “Healthy China 2020” strategy will greatly impact the economic and social development of China.
“Healthy China 2020” strategy has been studied for many years. As early as 2007, Minister of Health Chen Zhu at China Association for Science and Technology announced the 3-step strategy to implement “Healthy China 2020”. August 2012, the Ministry of Health organized hundreds of experts to discuss the final formation of “Healthy China 2020” strategic research report, and proposed to improve the basic health care system covering urban and rural residents to achieve access to basic medical and health services. The “Healthy China 2020”’s main purpose is to continuously improve the current medical and health services to the level of developed countries.
For the capital market, once the “Healthy China 2020” become one of the national strategy, a ten trillion health care industry market will be created. Related research report shows that China’s health industry has become the world’s largest emerging industries. However, compared with the United States, Japan and even many developing countries, China’s health industry is still in its infancy. Statistics show that the US health industry accounted for more than 15% of GDP. Canada, Japan and other countries health industry accounted for more than 10% of GDP, while China’s health industry accounts for only 4 -5% of GDP.
Personal health insurance is the insurance industry’s main way to tap into the health care industry. Due to the rapid growth of the healthcare industry, health insurance has also entered a period of rapid development. Public data show that from 2010 to 2016, the domestic health insurance premium income increased from 69.172 billion yuan to 404.25 billion yuan: an increase of 4.8 times.
It is expected that, with the “Healthy China 2020”, the medical system reform will continue to progress and the personal health insurance will play an increasingly important role.
The Chinese government is aware of the inadequacies of the Chinese people’s health and life insurance, and in the past few years has promoted this lack of awareness to the populace and encouraged private foreign insurance companies to join the Chinese insurance industry.
The establishment of SH Group is to serve the needs of Chinese government going forward in its “Heathy China 2020” insurance need. SH Group with its expertise and experience in international insurance brokering, and customer oriented service culture will definitely be able to make an impact in China insurance market.