Expert Insight by Dr. Hak Hong Soo, Regional Head of Health, Generali Asia

When it comes to health, social practices across Asia are shifting and are having an implication on healthcare provision. While there are changes specific to each country depending on its unique social and culture behaviours, there are overarching, prevalent themes across the region that forward-looking insurers not only understand but are responding to in innovative ways.

Living a healthy life

One of the major themes is the growing awareness of prevention and engagement in a healthy lifestyle. According to a report conducted by Asia Opinions, Asian consumers are far more likely to be interested in eating healthy than those in the West[1]. Further to this, a report by Transparency Market Research estimates that the Asia Pacific corporate wellness market will reach US$7.4 billion by the end of 2024[2] driven by a holistic approach that looks at things like sleep, stress and the use of technology, such as wearables.

Overall, Asians are generally more aware of the benefits that come with embracing a healthy lifestyle and are placing controls on social habits such as smoking and drinking with the knowledge that it can increase their chances of developing non-communicable diseases (NCDs). Insurers have responded with innovative products and campaigns that support their customer’s healthy behaviours.

Generali’s aim is to be a lifetime partner to our customers and part of this includes creating tailor-made products and services that encourages them to live a healthy lifestyle. For example, our Employee Benefits arm launched CIAO, a mobile health app designed to assist and support the healthy behaviours of our customers.  

Industry peers have launched similar products such as AIA with its well-known Vitality program and Manulife’s Move, both of which reward customers with lower premiums by encouraging them to keep track of their healthy lifestyle activities on digital platforms and wearables.

Medical travel

Another growing trend we are observing in Asia is medical travel. According to Maximize Market Research, the Asia Pacific Healthcare Mobility Solutions Market is expected to reach US$151 billion by 2024 from US$23 billion in 2016[3]. This is prevalent across Asia because many patients are attracted to regional centres of healthcare excellence such as Hong Kong, Malaysia, Singapore and Thailand. For example, Malaysia experienced a 14% annual increase over the past three years in healthcare travellers which climbed to 1.2 million in 2018.

There is a clear opportunity for insurers to cater for this demand, but they need to be aware of the two fundamental needs at play – travel for high quality treatment and travel for convenient and affordable medical care.

Non-Communicable Diseases (NCDs): The Asia epidemic

NCDs are the leading cause of deaths globally[4] and are one of the biggest healthcare issues facing policymakers today. At the 2017 World Economic Forum on ASEAN, it was highlighted in a report that NCDs (which include cardiovascular diseases, cancer, diabetes and chronic respiratory disorders) claim 40 million lives every year, 17 million of whom are people under the age of 70 and 8.5 million of those are in Asia[5].  While many communities in the region are becoming more affluent, it is the poorer communities which are at a greater risk of developing NCDs because they don’t have the financial means to live a healthier lifestyle.

An opportunity for the industry is to design a tailored solution that can address this issue and support people on the entire journey, including prevention, early diagnosis, quality treatment and the creation of a professional health management program that will help to improve the lifestyle of communities which are at high risk of developing NCDs.

Generali Asia has aligned cohesive health initiatives to create a regional health service framework and solutions to support local business in building a health service eco-system, and to address the rising needs of customers over their entire healthcare journey.

Industry peers such as AXA and Cigna in Hong Kong provide products tailored for customers with diabetes to cover treatment and help manage their health. While Prudential offers access to a DNA-based precision health program that will identify if a customer is susceptible to three common NCDs and will work with them to achieve a healthier lifestyle. While, in early 2019, Generali in Indonesia launched a DNA Journal program to target segmented customers.

Growing awareness of mental health

Over one million people worldwide commit suicide every year, and more than 60% of suicide deaths occur in Asia[6]. Mental health issues are highly stigmatised in Asian culture, but there is growing awareness that societal views need to change in order to tackle this problem. Not only has mental health been gaining public attention, but there is an opportunity for insurers to cover mental health related illnesses in their products which was previously excluded.

In 2018, FWD in Hong Kong launched the first product offering that included coverage for mental illnesses such as anxiety and mild depression. Also, in Hong Kong, Generali’s LionGuardian includes mental health coverage for children. Regionally, it is promising to see that more insurers are adding Employee Assistance Program’s into their solutions for corporate clients with mental health counselling programs included.

A final word

The Asia healthcare opportunity is still paramount and the robust fundamentals of a large, rapidly growing ageing population, increasing affluence, rising middle-class and increasing incidence of chronic diseases is still fuelling this growth. However, with the rise of new incumbents, such as Alibaba’s crowd funding approach to cancer insurance and Google’s potential foray into health insurance driven by its AI capabilities in disease detection, there is a pressing need for insurers to act quickly so they don’t miss out. To ensure traditional insurers thrive into the future of healthcare in Asia, keeping a close pulse on the market, particularly an understanding of the evolving behavioural changes and being agile to respond, will determine who will excel.     

 

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References

[1] http://csr-asia.com/newsletter-asian-consumers-and-healthy-eating

[2] https://www.transparencymarketresearch.com/asia-pacific-corporate-wellness-market.html

[3] https://www.maximizemarketresearch.com/market-report/asia-pacific-healthcare-mobility-solutions-market/7084/

[4] https://en.wikipedia.org/wiki/Non-communicable_disease

[5] https://www.weforum.org/agenda/2017/05/non-communicable-diseases-kill-8-5-million-people-in-asia-each-year-we-need-a-plan-to-fight-them/

[6] https://onlinelibrary.wiley.com/doi/10.1002/9781118903223.ch30