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, CHINA - Media OutReach - 19 JUNE
2018 - 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.
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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
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