A Research On The Strategic Transformation Of A Insurer's Health Insurance

Since we enter into the 21 st century,with the rapid increase in per capita disposable income and material and cultural living standards,people's demand for medical security is increasing.Although China has been striving to promote the Basic Medical Insurance(BMI),due to the fact that BMI has always followed the rules of “wide coverage and low security” and thus it has been unable to meet the growing needs of the people.Commercial health insurance(CHI),which is an important supplement to BMI,has thus received increasing attention from the people.According to the data from China Association of Industry and Information,the domestic premium income of CHI reached 450 billion yuan in 2017.It is estimated that the premium of China's CHI will reach 1 trillion yuan by 2020.Although the premium of CHI has increased considerably,the profitability is far from ideal.According to Ecomonic Observation in 2012,more than 70% insurers maintain a loss ratio of over 80%,about 40% insurers have a loss ratio of over 100%,and some even have a loss ratio of 200%.Sitting in front of the lake but with no fish to catch,what is wrong with China's health insurance and how to solve these problems to ensure a healthy development of CHI in China? The root case is on the similar product design which purely turns China's health insurers to payers,who passively understake the healthcare cost of the insureds.In addition,China's health insurers are yet to play an important role among medical facilities and healthcare providers.As a consequence,many health insuers find it difficult to manage the cost conainment and thus frequently end up operating in the red.Out of this general background,this paper explores the operation of A Insurer's Health as an example on how to set up the correct premium rates and adjust the product features according to the market environment and customer's needs to strengthen its competition edge by value proposition.This paper aims to study the strategic transformation of A Insurer's Health Insuance with insights of innovative approaches taken by some players in this industry.Starting from the BMI,this paper analyzes it's history and then justify the necessity of CHI with the emerging gap of Chinese Macro Social Security Scheme and also people's increasing desire of decent healthcare needs.Furthermore,this paper quoted some innovative approaches by some relevant players in this market to uncover their ambition to take part in the CHI.Then,this paper analyzes the operation problems inside A Insurer's Health Insurance by examing the relvant operational data.Last but not least,based on the innovative approaches in this industry together with A Insurer's own value proposition,this paper offers suggestions from 6 perspectives to improve A Insurer's Health Insurance.In a word,the CHIs in China are faced with tremendous opportunities,the future of this business is to combine clients together,follow regulator's guidelines closely and manage the business by dedicated teams with a good cooperative relatioships with relevant stakeholders inside the healthcare industry.Whether the business can be a success is heavily dependant on technology,which needs to extend massive inside the socierty with ever changing technology by swifting following customer's fragmental needs and turn them into products.Only if insurers make full preparations and adjust the strategy to cater to customer's genuine needs,insuers can build their own core competency by refining their internal operation as well as improving cooperation with external parties.