Seizing Market Opportunity: Pacific Health Insurance Partners with Baowang to Launch New Disability Income Insurance Product

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On January 7, Pacific Health Insurance, a subsidiary of China Pacific Insurance (CPIC), launched its new disability income insurance product, Coral No. 1, in Xiamen. Baowang, an internet-based insurance platform under BGM Group (in which AIX holds about 72% equity), co-initiated the product and served as a key partner and sales channel, attending the event.

Enormous Potential in China's Income Protection Market

Disability income insurance, also known as income loss or income protection insurance, is designed to provide financial protection to policyholders who lose their ability to work due to illness or injury. It is a major category within commercial health insurance.

Industry data shows that critical illness and medical insurance dominate the health insurance market, each accounting for around 45% of the total market share, while the other two major categories—disability income insurance and long-term care insurance—hold a much smaller share, collectively less than 10%. In contrast, in mature international markets, disability income insurance accounts for more than 30%.

Mr. Hou Wencai, Deputy General Manager and Chief Actuary at US Reinsurance Company, believes that after a century of market development, disability income insurance is a cornerstone of financial protection in the US and Australia. However, China is still in the early stages, presenting enormous growth potential.

Groundbreaking Launch of disability income insurance Product

At the event, Pacific Health Insurance, in collaboration with Baowang and other companies, unveiled the Coral No. 1: Disability Income Insurance. The product offers extensive disease coverage, flexible protection options, and an industry-leading payout limit.

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For younger customers concerned about life's uncertainties, Coral No. 1 offers three flexible coverage terms: 10 years, 20 years, or until the policyholder reaches 65, with benefits continuing even after the term ends.

Coral No. 1 provides a variety of coverage options: it covers 70 major illnesses such as stroke, heart attack, Alzheimer's, paralysis, and deep coma. It also provides protection for accidental disability resulting from events like traffic accidents, burns, and drowning. Clients can also choose additional coverage for cancer and mild diseases, creating a comprehensive insurance system for both severe and minor health issues.

For disabled policyholders facing treatment challenges, Coral No. 1 offers a lump-sum payment of up to 20 times the basic coverage amount, with a maximum payout of RMB 300,000, in case of immediate financial difficulties. Furthermore, policyholders can continue receiving income compensation for up to 100 months, with a total payout of up to RMB 1.8 million for post-treatment care and family income disruptions.

Baowang is optimistic about the future of disability income insurance, as it will a complement to critical illness insurance and expand to serve a broader customer base. Baowang will continue to collaborate with leading insurers like Pacific Health Insurance to seek innovation, sustainable growth, and balanced development in commercial health insurance, meeting the public's demand for tailored coverage and better protecting people's well-being.