The direction of development of Huiminbao

Huiminbao since mid-2020 began to heat up, although more and more participants, but the direction of market development is not clear, the future where to go there is still a lot of uncertainty.
as a commercial health insurance, Huimin Insurance in the channel, wind control and claims and other products are not very different, but in pricing has a greater difference.
the current Huimin insurance products are basically priced at an average rate, which is more like health insurance than commercial insurance.
health insurance can be priced at an average rate because it can reach enough users to overcome a risk of inverse choice.
, HuiminBao is after all only commercial insurance products, users are not forced to buy.
once the user is selective, the risk of reverse selection is high, and Huiminbao has to rely on the increase in deductibles to hedge future risks.
decision makers and users in the group insurance market are not the same, and the risk you choose is smaller.
is an individual decision, so group insurance can be priced equally within a group, but the pricing of an insurance market must be based on each individual's actual situation to determine the premium.
is a risky market with group insurance characteristics, much like the one under the ACA in the United States.
ACA passed, individual users with past conditions can purchase commercial insurance (previously only group insurance included users with a previous condition, one insurance is explicitly denied), the market had expected large-scale personal access to ensure that there are enough health to cover the risks caused by the entry of the disease.
The fact is that healthy bodies enter the market at a lower rate because they believe their health risks are low, while disease-carrying bodies enter the market on a large scale, resulting in huge losses for insurance companies in the first place.
five major U.S. health insurance companies had to pull out of the market within five years of starting operations.
faced with persistent losses, insurers have had to rely on a two-pronged approach to rising premiums and pulling up deductibles.
insurance market has gradually stabilized by the end of 2017, mainly because rising premiums and high deductibles cover losses, in which companies operating have announced profits.
price increases, both the core payout rate and the share of administrative costs have been effectively reduced, ultimately driving profits.
monthly premium for each insurance policy has risen from $235 in 2013 to $444 in 2017 and is already around $500 by 2020.
the same period, deductibles rose as much as nearly $10,000.
The U.S. commercial health insurance market has been narrow because of the reluctance of a large number of health insurers to buy insurance, with the number of users falling after peaking at 17.4 million in 2015 and falling back to more than 13 million in 2019.
simply compare the four products from the 2020 Philadelphia insurance market, two from Blue Cross and two from Oscar and Centene.
the product itself, the price difference is small, from the lowest $520/month to the highest $552/month, the price between the highest and lowest is only $32.
, Oscar and Centene's deductibles were 3-4 times that of Blue Cross, leading to a sharp drop in the price/performance ratio.
that a user's high deductible means they have to pay their own fees to qualify for insurance claims.
although Oscar and Centene's out-of-office costs are lower, they're not that different from deductibles, after all, users start paying as much as $7,000 out of their own.
, in an uncertain market, rising premiums and higher deductibles are the most effective means of wind control, but they also affect the willingness of users to buy insurance products.
as a miniature version of millions of medical insurance, Huimin Insurance, while reducing the price to 10%-20% of millions of medical insurance, but at the same time will increase the deductible to between 20,000 and 30,000.
Millions of medical insurance is not open to diseased bodies (some products are open to belt diseases, but only for a small number of diseases), and health notifications are becoming more stringent, but the wind control is relatively mature.
the U.S. insurance market in the future if there is not enough health to survive, in the face of a large influx of sick bodies.
, because only parts of health insurance are reimbursed, the risk of medicare will not rise as quickly as it should.
, however, because of their younger health, they are less likely to suffer from serious illness and it is difficult for the out-of-the-way portion to achieve such a high deductible.
If different pricing is not suitable for people of different ages, the likelihood of future retention of the healthy body is not high, which ultimately leads to the over-exposure of Huimin Insurance, which has to continue to raise premiums and deductibles.
due to the continuing price war in the Chinese market, it is more difficult to raise prices quickly, and the possibility of higher deductibles is more likely, which leads to further loss of health until the product cannot be sustained.
Moremore, from the actual situation, although Huimin Insurance is mainly based on the city and under the guidance of the local government, but in essence is still not supported by clear policies of the full market-oriented commercial health insurance, even if some areas can use health insurance to buy, and did not bring substantial benefits to Huimin Insurance itself.
From the point of view of the product itself, too low premium prices can not bring large-scale premium growth to insurance companies, but also subject to the lower scale of compensation, nor through the volume-for-price way to drive the impact on the back-end medical services market, hoping that health management way to promote users to produce sticky ideas more difficult to achieve.
, it is difficult to see the future development of Huimin Insurance from the product itself, but from the whole insurance market can bring what as a starting point to understand.
2015, in order to promote market development, many products began to go down, the development of health insurance shows the two characteristics of small and landscaped.
is the creation of products with lower premiums to quickly reach customers and boost sales.
Users who choose a small product will be less protected and more professional, and the professionalism of the insurance product means that some less cognitive users may not have realized this at the time of purchase, but in hindsight, through other means or through the actual claims demand experience, users will realize that the small reduction behind the reduction, resulting in no renewal."
that's why micro-products, which are dominated by millions of medical insurance, have been in trouble for customers.
when Huimin Insurance lowers the threshold of health insurance, it will face more serious renewal problems and stronger regulation.
, because Huimin Insurance has to the extreme premium price, it is difficult to become a large insurance market size of the main product, it is difficult to become an important supplement to medical compensation.
From the current per city only 5%-10% of the user purchase ratio, even if laid to the whole country, the maximum is only 100 million people to buy, resulting in the premium scale of about 6 billion yuan, if the reference to millions of medical insurance payout ratio, only may pay about 3 billion yuan, only to the overall scale of commercial insurance compensation less than 2%, the scale of health insurance compensation is less than two thousandths.
therefore, unless China can implement the same as the United States and Singapore to put health insurance premiums to commercial insurance operations, Huimin insurance's main role can only be to do large-scale user-scale draination and transformation.
for the pursuit of scale effect of the insurance market, in a mature insurance market, due to the flat growth in the number of commercial insurance users, the insurance market is mainly committed to raising the price of customer units to do large-scale.
in an immature market with a high-speed development period like China, it is possible to scale up by lowering premiums because of the low depth and density of insurance.
However, low premiums to obtain growth is also a double-edged sword, because the actual purchasing power and willingness of users as a whole vary greatly, how many users can be converted into high-value customers will determine the overall size of the insurance market.