Aon Study Highlights Strategic Wellbeing Imperatives for Chinese Insurers to Build Capability and Address Medical Inflation Costs

The report highlights both the breadth of services available and the critical gaps that remain in delivering measurable health outcomes and employee satisfaction.

The report is based on a survey of 12 insurers and evaluates over 600 data points across 10 key wellbeing domains, including telemedicine, mental health, employee assistance programs (EAPs), health screenings and case management.

The report reveals that the health insurance market is projected to exhibit a compound annual growth rate of 7.4 percent from 2024 to 2032. Additionally, the Chinese Government has introduced initiatives like Healthy China 2030 to ensure universal health security, emphasising preventive care and wellness programs. Increased market competition has required insurers to enhance efficiency and implement cost containment measures with 92 percent of insurers providing customisation support for clients with more than 1,000 employees.

"The China health insurance market is experiencing significant growth, driven by the increasing prevalence of chronic diseases and supportive government policies," said Susan Fanning, head of wellbeing solutions for APAC at Aon. "Insurers are expanding their offerings and rethinking how they deliver care — moving beyond traditional coverage to focus on prevention, personalisation and measurable outcomes. This report highlights the urgency for insurers to evolve their wellbeing strategies, build stronger partnerships, and use data more effectively to meet employee needs and manage costs."

Key highlights:

· Telemedicine: China's most impactful digital health tool

Eleven out of 12 insurers have telemedicine options, making it the most widely adopted and effective service in reducing outpatient claims. Sixty-seven percent report measurable savings (0.5 percent to 5.1 percent), with services including 24/7 general physician access, chronic disease management and e-prescriptions. Despite strong ROI, only 40 percent offer telemedicine via annual subscription — highlighting a missed opportunity for scalable cost control.

· EAPs: Widely available, modestly used

While 66 percent of insurers offer EAPs, utilisation remains low, with only 10 percent of those corporates using them. Integration with other health services and more frequent HR engagement are needed to boost impact.

· Mental health: Underserved and underutilised

Only one-third of insurers provide mental health services, despite rising demand and high risk of mental health issues among employees. Utilisation is under 10 percent for 75 percent of policyholders and only 25 percent of programs are localised for cultural relevance.

· Health screenings: High potential, low ROI

Although five out of 12 insurers offer health screenings, none reported direct claims savings. Gaps in post-screening follow-up and reporting hinder their effectiveness in driving long-term health improvements.

· Case and specialist management: Critical Gaps

Less than half of insurers offer case management or specialist programs. Notably, there are no specialist programs for cancer, cardiovascular disease, gastrointestinal conditions or skin disorders — despite their prevalence.

Top Wellbeing Products and Services Offered

• Virtual consultations with healthcare providers
• Wellbeing workshops and seminars
• Onsite health clinics
• EAP
• Physical wellbeing programs/mental health support

Nina Yu, head of Health Solutions for China at Aon, said, "China's health insurance market is one of the most dynamic in Asia. Our findings reveal the enormous potential of customised benefits programmes in increasing the utilisation of these plans and reducing health inflation costs. The findings underscore a clear opportunity: insurers and employers must collaborate more closely, use data analytics and digital platforms to tailor benefits, improve access and drive measurable outcomes."

"To position themselves as best-in-class employers, companies must move beyond offering services to strategically implement targeted, culturally relevant programs that meet evolving employee needs and help bend the medical cost curve," Yu added.

Read more about Aon's offerings in China here.

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About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

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