IPMI Inflation in China

Like Hong Kong and Singapore, China too has seen an overall IPMI inflation rate of 9.5% in 2015, which is up from 7.2% in 2014, but still less than the double digit rates the previous 3 years. When compared to the reported Consumer Price Inflation of 2.5%, IPMI inflation is somewhat higher. Unlike recent Consumer Price Inflation figures - which have been largely stable - IPMI inflation rates have not followed the same trend, which indicates that the four major IPMI influencers likely have more impact on inflation.

Aside from the four main IPMI influencers Pacific Prime believes that there were three other influencers:

  • People in China, expats included, are becoming a more mature market with demands for not only better healthcare, but also better insurance coverage and the funds to pay for it. This has led to an increase in demand for IPMI plans.
  • In answer to this growing demand, the Chinese government has introduced new regulations to increase the number of hospitals - especially foreign owned private facilities - in the country. This has led to an increase in the cost of care and insurance.
  • The government has also introduced expanded health insurance regulation to include critical illness which has resulted in higher overall inflation levels and demand for plans that cover this, which includes IPMI plans.  

IPMI Inflation in China 2008-15


As the largest market in Asia, with a quickly burgeoning insurance industry, it is our prediction that China will likely lead the way for IPMI in the region and should be watched closely.

 Inflation in China by Insurer