Waterdrop(US:WDH) Huan Qiu Wang·2025-11-28 12:35Core Insights - The report highlights the growing challenge of providing insurance for individuals with pre-existing conditions in the context of an aging population and increasing chronic diseases among younger people [1][2] - The average treatment cost for this group is approximately 90,000 yuan, which is 2.1 times the annual disposable income of residents, indicating a significant financial burden [1] - The insurance industry is viewing the development of insurance products for individuals with pre-existing conditions as a key area for innovation and inclusive coverage [1][4] Group 1: Market Demand and Challenges - Nearly 30% of individuals with pre-existing conditions are denied coverage due to health disclosures, while others face exclusions or significantly higher premiums [2] - Over 75% of this group desires insurance that covers their existing conditions and is willing to pay extra for such targeted coverage, indicating a substantial unmet demand in the market [2] - Medical insurance has become a necessity for 44.5% of individuals with pre-existing conditions, with specialized products for cancer recurrence and disability risks emerging rapidly [2] Group 2: Differentiated Needs Among Subgroups - The elderly with pre-existing conditions have a stronger demand for long-term stable coverage due to higher treatment costs and longer illness duration [3] - Younger individuals are more affected by sub-health and chronic diseases, preferring insurance products with lower entry barriers and flexible coverage [3] - There is a significant need for insurance covering pregnancy-related health issues among certain segments of the mother and baby demographic [3] Group 3: Role of AI in Insurance Innovation - AI is driving systemic changes across the insurance service chain, addressing the challenges faced by individuals with pre-existing conditions [4][6] - The integration of AI and big data has accelerated product innovation, with 214 insurance products for individuals with pre-existing conditions launched by Waterdrop Insurance by 2025, including 34 first-of-their-kind products [4] - AI has improved user experience and operational efficiency, with AI-driven customer service and underwriting processes significantly reducing response times and increasing accuracy [6] Group 4: Industry Collaboration and Future Directions - The establishment of the "Inclusive Product Alliance" by Waterdrop Insurance and 18 other insurance companies aims to transform isolated innovations into scalable inclusive coverage [7] - The collaboration emphasizes the need for policy, industry, and technology to work together to enhance the quality of insurance for individuals with pre-existing conditions [7] - The insurance sector is encouraged to expand from mere compensation to comprehensive risk management, integrating prevention and recovery services [7][8]