Bei Jing Shang Bao·2025-11-18 07:03Core Viewpoint - The health insurance market is eager for innovative products, and the recent announcement from China Ping An regarding the development of participating critical illness insurance signals a potential revival of this product type after many years of absence [1][2]. Group 1: Product Development and Market Response - China Ping An has initiated research and development for participating critical illness insurance, aiming to launch products as soon as relevant regulations are established [1]. - Many insurance companies are reportedly preparing for the launch of new participating critical illness insurance products, indicating a broader industry movement towards this innovation [1]. - The recent policy change allowing the development of participating long-term health insurance has cleared obstacles for the reintroduction of these products [2]. Group 2: Characteristics of Participating Health Insurance - True participating health insurance combines coverage with variable returns, allowing policyholders to share in the insurer's profits while providing disease protection [5]. - Unlike current market offerings, which often combine participating whole life insurance with critical illness coverage, genuine participating critical illness insurance has not yet been available [3][4]. - The return on participating health insurance is not guaranteed and depends on the insurer's actual performance, requiring high actuarial and risk management capabilities [5]. Group 3: Market Dynamics and Future Implications - The return of participating critical illness insurance is expected to address current market pain points and enhance product competitiveness, particularly as traditional critical illness insurance faces challenges from rising prices [8][9]. - The shift towards participating products may lead to a market transformation from a "price war" to a "value war," emphasizing long-term investment capabilities and customer service [9]. - The reintroduction of these products is seen as a sign of market maturity and a response to consumer demand for value-added protection in a low-interest-rate environment [12]. Group 4: Challenges and Considerations for Implementation - For widespread market acceptance, participating health insurance must overcome challenges such as independent accounting for participating accounts, transparency in dividend policies, and balancing coverage with investment functions [10][11]. - The timeline for product rollout is expected to take several months to a year, with initial offerings likely to be cautious as companies await regulatory guidelines [10]. - The industry's ability to innovate and adapt to these new products will be crucial for meeting diverse consumer needs and ensuring sustainable growth in the health insurance sector [12].