Sustainability of products with adjustable long-term medical insurance rates will be a major challenge

One of the most important changes in the new health insurance management measures in November 2019 is to allow long-term health insurance to adjust the rate The new version of the measures clearly stipulates that: "Long term health insurance" refers to the health insurance with an insurance period of more than one year or an insurance period of less than one year but with a guarantee renewal clause Short term health insurance refers to the health insurance with an insurance period of one year or less and without guarantee renewal clauses The term of guarantee renewal refers to the contract that the applicant applies for renewal before the expiration of the previous insurance period, and the insurance company must continue to underwrite in accordance with the original terms and the agreed rate Long term medical insurance is the product of market competition after the rapid development of millions of medical insurance in the Chinese market Its core features include three aspects: First, although the product is still in-patient medical insurance, it is in the form of long-term insurance, which is guaranteed to be renewed within the agreed long-term range of many years, and the price will not be adjusted within this period Apart from this, its product characteristics and coverage are essentially the same as other short-term products in the market Second, some products require that the deductible be shared for six years, and the deductible be shared for 10000 yuan within six years, instead of 10000 yuan within one year This kind of marketing strategy is to increase the availability of products, because the deductible is too high has always been the question of millions of medical insurance Third, health notification is simpler, but insurance companies have more initiative This is not only the trend of long-term health insurance, but also the development trend of short-term million medical insurance Although on the surface, the health notification is simpler and the list of previous diseases is shorter, in fact, the requirements for health notification of some products are more vague For example, it is necessary to truthfully inform the behaviors of hospitalization, surgery or continuous medication for more than 30 days in the past two years, but there is no clear provision for the specific types and progress of diseases that need to be notified, nor for continuous medication for 30 days Provisions on corresponding conditions of disease or drug use Therefore, in essence, underwriting is not loose, but more initiative is left to the insurance company, and there is more room to deal with the past disease In terms of the integration of these three features, the long-term health insurance products are characterized by multiple elements of marketing - guarantee of renewal and sharing of deductibles However, in terms of the essence and operation of the guarantee, there are still quite a lot of features similar to other short-term insurance products, and in terms of renewal and underwriting, the insurance companies retain quite a lot of initiative, and the fuzzy part is reserved for future product replacement There is more room However, due to the fierce competition in the current health insurance market and obvious competition for customers, major companies have to attract young users with small amount of products, so low price products are better to sell Especially for small insurance companies, the channel strength is not strong enough, and the number of branches is limited In order to compete for customers, in addition to high commission and large marketing strategy, product price is the main method This technique can have two effects One possibility is that the insurance company should increase the insurance coverage and reduce the price at the same time It is easy to ignore the essence of the insurance, avoid the heavy and light, and increase a lot of details However, in the actual claim settlement, there will be many problems, such as some diseases are not covered by the insurance coverage in fact, or the actual degree of security obtained and the cognition of the policyholder deviate, leading to disputes Another possibility is that insurance companies take more risks in order to attract users with price Facing the pressure of big marketing expenses and commission, if we ignore the risk in order to offset the premium, it may be unfavorable to the long-term claim control of insurance companies In terms of users, micro consumption is also very obvious in medical products This is mainly because the market environment and changes in consumer habits have led to a significant decline in the disposable income of young users In a survey of more than 1000 users conducted by latitude health in 2018, we found that 85% of users said they could save money, while 15% said they could not But 34% of users said they could save less than 20% of their income every month As a result, nearly half of users can't save money and can only save less than 20% of their monthly income Therefore, in general, the ability of users to save money is not strong The main reason why users can't save money is that they can't control consumption The final result is that they have high desire for consumption, but lack of practical ability In health products, consumption tends to small amount.