Core Insights - The report titled "Transformation and Development of China's Medical Health Security System: Responding to Aging Challenges and Promoting Innovation in Commercial Health Insurance" was released by Allianz Group and Fudan University, analyzing the challenges faced by China's medical security system amid deep aging [1][2] - China is experiencing the largest and fastest demographic transition in history, with the population aged 65 and above expected to reach 15.6% by 2024 and potentially rise to 42% by 2070, leading to increased healthcare demands and sustainability challenges for basic medical insurance funds [1] - The report emphasizes the need for commercial health insurance to transition from being a "marginal supplement" to an "ecological collaborator" within the multi-tiered medical security system being developed by the government [1] Industry Trends - The top-level design of China's medical security system establishes a framework of "basic security as the foundation, commercial security as a supplement," indicating a shift in the role of commercial health insurance [2] - The health insurance market in China is transitioning from extensive growth to high-quality transformation, with a focus on creating unique value through supplementary services [2] - Allianz China has prioritized the innovation and upgrading of health products as a strategic focus for 2025, including the enhancement of its main medical insurance product and the introduction of new products targeting disability income protection and tax-advantaged long-term care insurance [2]