Top Page | English | 简体中文 | 繁體中文 | 한국어 | 日本語
Tuesday, 19 June 2018, 15:45 HKT/SGT
Share:
    

Source: Aon
Medical inflation rate in Hong Kong highest in Greater China
Rise in cancer cases and an ageing population put huge strains on medical services, according to Aon Asia Healthcare Trends Report 2017/18

HONG KONG, June 19, 2018 - (Media OutReach) - Aon plc (NYSE:AON), the leading global professional services firm providing a broad range of risk, retirement and health solutions, has launched its inaugural Asia Healthcare Trends Report 2017/18.

The report examines medical inflation, its key drivers, and prevailing cost management strategies by insurers across 11 markets in the region. Each market is also allocated an Aon Medical Inflation Index (AMII) score, which compares the average medical inflation rate in each location for 2017 and 2018 with a projected inflation rate for the next three years. The AMII score for Hong Kong is 78.8 - better than the regional median of 82.7 but the highest in Greater China.

Medical inflation forecast for 2018 is 8.4%, up slightly from the 8.2% forecast for 2017. However, 40% of insurers predict a significant increase in healthcare costs over the next three years.

Trends in cost management
Asia is being hit by a convergence of several unfavourable factors including a rapidly growing middle class with heightened expectations of healthcare outcomes, an ageing population, and high incidence of non-communicable diseases such as cancer, cardiovascular disease, and respiratory-related conditions.

The report tracked a moderate reduction in inflation rate in Hong Kong from 2014 to 2016, from 9.0% to 7.5%. However, inflationary pressures have been building on a number of fronts - notably an ageing population and public health system struggling to cope with increased demand. The report noted that a majority of Hong Kong residents are now 50 to 59 years of age, and over time, a large population of seniors aged 80 years and above will put significant strain on medical and care services.

Furthermore, in the decade between 2003 and 2013, new cancer cases increased at a rate of 3.1%, compared to population growth of just 0.7%. New cancer cases in Hong Kong hit a high of 30,318 in 2015, an increase of 2.4% from 2014. The increase in incidence of cancer decreases quality of life for residents in their most productive years, which has direct and adverse impact on the economy. The report also states that inpatient costs are the primary driver of inflation, with diagnostics for cancer-related illnesses as the top inpatient cost.

Kitty Chan, Managing Director, Health & Benefits, Hong Kong, Aon, says: "The Hong Kong healthcare market finds itself at an interesting tipping point. The norm over recent years has been the provision of high standards of care through the public system at minimal cost; however, doubts over medical inflation persist, encapsulated in the downcast medium-term prognosis of Hong Kong's medical insurers over the projected inflation rate."

On a positive note, Hong Kong is the most advanced market in Asia in terms of employee wellness programmes for women's health-related initiatives. This could be prompted, in part, by the 70% increase in incidence of breast cancer cases from 2005 to 2015, compared to only a 40% increase in all other female cancers combined during the same period.

Tim Dwyer, CEO, Health & Benefits, Asia Pacific, Aon says: "Consistent with the majority of markets profiled in our report, Hong Kong's insurance community expressed the view that it is inpatient costs which are the primary driver of medical inflation. This outcome is concerning, particularly as 40 per cent of participating medical plan insurers are forecasting medical inflation to increase significantly over the next three years. With cancer related costs being their top inpatient cost, followed by cardiovascular diseases, there is an urgent need for insurers, healthcare providers and employers to better target their investment into employee wellbeing initiatives to ensure that equitable, affordable healthcare is universally available".

About Aon
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.

Follow Aon on Twitter: https://twitter.com/Aon_plc
For information on Aon plc. and to sign-up for news alerts: http://aon.mediaroom.com

About Aon Asia Healthcare Trends 2017/18 Report
The inaugural Aon Asia Healthcare Trends 2017/18 surveyed insurers across 11 different markets, and provides quantitative analysis of key risks and cost drivers on a market-by-market basis and prevailing cost management and employee wellness initiatives. This data is supported by a narrative that provides an appreciation of the market fundamentals that are driving the growth of pharmaceutical and diagnostic industries, and the healthcare labour force participation rates amongst other key variables.

To download the full report, please visit: http://www.aon.com/apac/study/2018/aon-asia-healthcare-trends.jsp

Media Contacts
For further information, please contact:
Angelyn Varkey +65 623 98878 / angelyn.varkey@aon.com
Maneesh Sah +65 9823 4186/ maneesh.sah@aon.com


June 19, 2018 15:45 HKT/SGT
Topic: Press release summary

http://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2018 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.



Aon
July 9, 2018 21:10 HKT/SGT
Aon Announces First-of-its-Kind, Season-Long Golf Competition in Partnership with PGA TOUR and LPGA
June 25, 2018 12:00 HKT/SGT
Medical inflation rate in China falls to third-lowest in Asia
May 30, 2018 18:40 HKT/SGT
Employee Engagement In The Philippines Bounces Back By 6 Points
May 22, 2018 15:00 HKT/SGT
Aon and DLA Piper review insurability of GDPR fines across Europe
May 14, 2018 13:00 HKT/SGT
Malaysia Bounces Back With 4-Point Increase in Employee Engagement
Apr 11, 2018 10:20 HKT/SGT
Islamic State poses a sustained threat to Singapore and Southeast Asia
Apr 7, 2018 00:00 HKT/SGT
Healthcare affordability improves in Singapore
Mar 29, 2018 00:00 HKT/SGT
2018 Employee Engagement Trends: Singapore Employees Least Engaged Among Major Asian Markets
Mar 19, 2018 16:05 HKT/SGT
Selecting quality talent a significant challenge for Singapore companies: Aon Talent Acquisition Southeast Asia Study 2017
Dec 12, 2017 11:30 HKT/SGT
China salary increase rate down in 2017, as involuntary turnover rises
More news >>
 News Alerts
Copyright © 2018 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Privacy Policy | Terms of Use | RSS
US: +1 800 291 0906 | Beijing: +86 10 8405 3688 | Hong Kong: +852 2217 2912 | Singapore: +65 6304 8926 | Tokyo: +81 3 6721 7212

Connect With us: