Mubasher: The Chinese health insurance sector is forecast to grow to CNY 921.1 billion ($136.6 billion) in 2022 from CNY 437.4 billion ($64.7 billion) in 2017, according to a report released by GlobalData.

China’s health insurance sector contributes 30% of the country’s general insurance business, the report showed.

Direct written premium in health insurance is expected to record a compound annual growth rate (CAGR) of 16.1% between 2017 and 2022, compared to 41.2% over 2013-2017.

“China’s ongoing demographic shift, with a decline in fertility and a rise in aging, exerts pressure on the existing social healthcare system, which increasingly faces a challenge in terms of inadequate coverage and capacity. This is an opportunity for private insurers to tap into,” Manisha Varma, insurance analyst at GlobalData, noted.

Health insurance penetration is projected to rise to 0.74% in 2022 from 0.53% in 2017, as “private insurers are driving the momentum in terms of new product offerings in critical illness cover as well as enabling online-based short-term insurance policies.”

The share of health insurance is forecast to increase to 36% of total general insurance business by 2022 on the back of growing demand for healthcare and rising insurance penetration, Varma concluded.