Is commercial health insurance necessary?

Despite the huge population and improving living standards, Chinese insurance companies have been having a hard time. [Photo: VCG]

The concept of life and health insurance is relatively new to the Chinese people. It’s only in recent decades that government-funded health insurance has begun to gradually protect the world’s largest population.

While many Chinese people are now covered by government programs, many of them don’t even know about the existence of commercial life and health insurance, let alone buying it. 

This situation has prompted insurance companies to intensify the promotion of their products, while the government is honing regulations on the emerging, still disorderly commercial insurance sector.