Amid such market forces, health insurers risk losing market share if they fail to adapt. At the same time, the rapidly changing landscape provides an opportunity for insurers in Asia to break down traditional boundaries and adopt new roles and business models.
There were over 294 Asian healthtech funding deals in 2018 alone. As digital trends reshape healthcare globally, insurers in Asia have started to take notice. This greater availability of digital health solutions may also have implications for the future supply and demand of health insurance. Digitization and consumerization themes have already penetrated the healthcare industry in Asia, and many new insurer-digital health partnerships have emerged. While partly defensive, these collaborations also present new opportunities for value creation for both consumers and the insurers. However, Asia’s insurers will also need to temper their ambitions with an understanding of both risk and investment required in such a strategy.
There are three major market forces that we believe will reshape the role of health insurance in the near future:
- From products to services
- From one-size-fits-all to customized
- From clinical to consumerized
This paper looks at how these three major trends will fundamentally reshape the field of play for life and health insurers in Asia from traditional, as-charged indemnity plans towards more dynamic healthcare ecosystems, from healthcare to health.