Asia: Singapore, HK and Korea have highest estimated health insurance gaps per household
Source: Asia Insurance Review | Nov 2018
In Asia, the estimated average health insurance gap for all households for 2017 is the biggest in Singapore, followed by Hong Kong and South Korea, according to a study by Swiss Re, ‘Asia’s Health Protection Gap: Insights for building greater resilience’.
The estimated average size of the gap, in dollar terms, for all households in mature Asia is more than three times that in emerging Asia, a reflection of the higher cost of treatment in the mature markets. However, the average size of the estimated gap as a percentage of annual household income is lower in mature than in emerging Asia.
According to the study, the biggest total health protection gaps are in China ($805bn) and India ($369bn) due to their large populations and lower level of affordability. Both countries have a high share of out-of-pocket expenses - 65% in India and 30% in China - which are much higher than that of mature markets globally at 10-14%. In addition, China and India represent more than 75% of total non-treatment cases in Asia, affecting around 32m households.
The estimated gap is the lowest in Thailand, where provision of healthcare through a subsidised universal healthcare system has resulted in the country having one of the lowest levels of out-of-pocket medical expenses in the region.
Emerging Asia includes China, India, Indonesia, Malaysia, the Philippines, Thailand and Vietnam, whilst mature Asia includes Hong Kong, Japan, Korea, Singapore and Taiwan. The classification follows that of the IMF. A