BEIJING, Dec. 21,
2022 /PRNewswire/ -- At the recently held 2022 China
Insurance and Aged Healthcare Forum, Hui
Teng, Chief Actuary of Waterdrop Inc., was invited to give a
speech titled Good Products and Services Are the Underlying Logic
of High-quality Transformation for Health Insurance. He shared
Waterdrop's innovative practice in the high-quality transformation
of health insurance products and discussed the future of
China's health insurance
market.
Hui Teng said, the growing health
insurance market has seen bottlenecks like homogeneity of products
and services and lack of innovation. By type:
1. Critical illness insurance. Customers show a low willingness
to buy critical illness insurance mainly due to high premiums,
under leverage, low coverage, inadequate coverage of unhealthy people, and lack of
innovation.
2. Medial insurance. Medical insurance provides a wide range of
protections, but as product innovation approaches the ceiling, the
focus is gradually shifted to micro innovation, and there is a
price shock from "Huiminbao" Insurance. Improvements can be made in
the fields of expensive drugs and innovative therapies.
3. Care insurance. Existing care insurance products are intended
for wealth management more than protection, but the real demand for
care services is unattended, and service standardization and
accessibility need to be improved.
Hui Teng believed that good
insurance products and services will be the core and foundation of
future development for the health insurance market. A good
insurance product or service shall have six elements: 1. a certain
customers base to cover enough population; 2. an acceptable price;
3. the ability to meet particular needs of certain groups; 4.
convenient purchase channels; 5. the ability to address
customers' pain points; 6. well-developed supporting services
to make customers feel satisfied.
Hui Teng said, methods to create
good products and services include three "expands" (expand coverage
of customers groups, coverage of disease types, and services) and
two "lowers" (lower threshold and price).
Expanding coverage of customer groups addresses the bottleneck
of the user base. Existing health insurance products in
China mainly target healthy people
and the young and middle-aged. Given that population aging is
accelerating, and there are 0.3 billion diseased population and 0.3
billion new citizens, we could expand the coverage of future
insurance products from healthy population to diseased population,
from juvenile, young and middle-aged groups to the seniors, and
from urban population to the submerged market.
Expanding the coverage of disease types serves to address the
pain points of customers. Critical illness insurance products in
the future shall cover not only severe illnesses but also other
disease types. In addition, the insurance products could adopt
approaches that are perceptible to users and not rely on the
definition of illnesses, such as disability insurance. Illnesses
with high underwriting risks, geriatric diseases, and mental
illnesses may imply a huge room for the health insurance
market.
Expanding services deals with the sense of gain for customers.
Health insurance shall provide not only compensation for losses but
also services. In addition to fast and satisfactory compensation,
the products shall satisfy people's needs for medical resources and
services. Health insurance can engage deeply in the processes of
diagnosis, treatment, medication, and rehabilitation.
Lowering the threshold addresses the accessibility of insurance
products, including relaxing access conditions (without lowering
the underwriting standards), focusing on the aged and micro and
small insurance, and making uninsurable risks insurable.
Lowering prices could make insurance products more inclusive.
Instead of lowering the price in absolute terms, it means
increasing the cost performance through the design of the insurance
form and the innovation of insurance content. We could also make
the payment method more flexible, by changing annual payment to
monthly payment, for instance.
Hui Teng introduced some attempts
of Waterdrop in creating good products and services. In terms of
good products, this year, Waterdrop launched Waterdrop Blue Ocean,
the industry's first customized critical illness insurance product
with a waiver on health declarations. The product features a wider
coverage of illnesses, a more affordable premium, and a lower
threshold so that it can effectively reach people with pre-existing
medical conditions, the elderly, and new citizens. The product also
offers a mini version that highlights the "lower threshold", and
million-yuan medical insurance with no deductible.
As to good services, Waterdrop connects online and offline
services. In September, it launched Bangbangpei, a product for
one-stop claims settlement with eight claims assistance services
and four claims settlement tools. In November, Bangbangpei
initiated a pilot offline to provide online and offline-linked
claims assistance services. Waterdrop also connects insurance with
health management, providing diagnosis, treatment, medication, and
rehabilitation services to give users a better experience.
About Waterdrop Inc.
Waterdrop Inc. (NYSE: WDH) is a leading technology platform
dedicated to insurance and healthcare service with a positive
social impact. Founded in 2016, with the comprehensive coverage of
Waterdrop Insurance Marketplace and Waterdrop Medical Crowdfunding,
Waterdrop aims to bring insurance and healthcare service to
billions through technology. For more information, please visit
www.waterdrop-inc.com.
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SOURCE Waterdrop Inc.