Speakers:

Universal Health in

Indonesia and SingaporeCan P2P Healthcare be a solution?

Mr. Albertus Setiadi

RGA

Mr. Jairus Ng Yi Jun

PWC

Mr. Robin Hu

Aviva

Q&A Session

Moderator: Ms. Shong Kay Ying, RGA

2020 SAS Sponsor

Virtual SAS Afternoon Forum

29 May 2020 (Friday)

12.15pm – 1.45pm

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Albertus SetiadiIndonesia National Healthcare Scheme -

Badan Penyelenggara Jaminan Sosial (BPJS)

Jairus NgA Comparison of Universal Healthcare in

Singapore and Indonesia

Robin HuA Brief Introduction on P2P Mutual

Healthcare Funding in China

Presented by: Albertus Setiadi

Indonesia National

Healthcare Scheme Badan Penyelenggara Jaminan Sosial

(BPJS)

1A

ge

nd

aBrief History of Indonesia National Health Care Scheme

2 About BPJS Kesehatan

3Component of BPJS Scheme (i.e. Member, Funding, Benefits & Role of Private Insurance)

4 Challenges facing BPJS Scheme

5 Summary

Brief History - Indonesia National HealthCare Scheme

Dutch government officially acknowledge Indonesia

independence. Then Minister of Health (Mr Siwabessy) issuedearly proposal for universal healthcare scheme

1949Formed a formal organization (BPDPK) to manage operation of

healthcare scheme coverage for government staff andpensioners, including their family.

1968

Reform BPDPK into PT Askes (state owned company). The

new organization extended healthcare scheme to include staff

of all state companies. In 2005, PT Askes further extended the

program to include coverage for poor family under subsidy ofnational government, benefting around 60mn individuals

1992 - 2005

Indonesian government issued bill of Universal Health Care

Scheme (BPJS) and appointed PT Askes as operator whose

name later changed into Badan Penyelengara Jaminan Sosial(BPJS) Kesehatan

2011

1Jan 2014 as official operation of BPJS Kesehatan which runs

BPJS Scheme

2014

Indonesia’s Universal Healthcare Scheme (BPJS) officially started on 1st Jan 2014 & is currently run by state owned operator called BPJS Kesehatan

Realisation of national universal healthcare scheme

Ensuring sustainability of the scheme

Widening coverage to include all

Indonesians

Providing best service to member

About BPJS Kesehatan

• Operator (state owned) of Indonesian National Universal Health Care scheme (i.e. the BPJS scheme)

• Mission is to– Provide the best service to member– Widen coverage to include all Indonesians– Ensure sustainability of the scheme

• Essentially, realizing the ideals of national universal healthcare scheme in Indonesia

IDR 94 Trillion (USD 6.3bn) Total Claims paid

About BPJS Kesehatan

640 Thousandscustomers Per day who consume

healthcare under BPJS scheme

IDR 11.7 Trillion (USD 780mn) P&L deficit

Snapshot for year 2018

Source: 2018 Audited Account from www.bpjs-kesehatan.go.id

IDR 34.7 Trillion (USD 2.3 bn) cumulative (Since 2014)

total deficit of the scheme including

additional grant/subsidy from

government

• There are 5 membership categories with total a of 221 million members as at 31 Aug 2019.• Membership is compulsory.• The largest membership category (about 6 in 10 BPJS members Or 132 mn people) is from

non-paying member.

Component of BPJS – Member

Source: https://bpjs-kesehatan.go.id

132

17

34 33

5

0

20

40

60

80

100

120

140

(Eligible) Non payingmember

Salary worker & coreFamily (Government

Staff)

Salary Worker & coreFamily (Private

Companies)

Non-Salary Worker &core Family (Incl foreign

expatriate)

Not Working

Mill

ion

Membership Category

BPJS Member - Total 221 millions (As at 31 Aug 2019)

60%

8%

15%

15%

2%

BPJS Member - Total 221 millions(As at 31 Aug 2019)

(Eligible) Non paying member

Salary worker & core Family (GovernmentStaff)

Salary Worker & core Family (PrivateCompanies)

Non-Salary Worker & core Family (Incl foreignexpatriate)

Not Working

Paying Member

Membership Categories Example

(Eligible) Non Paying Members This membership is designated by national and local government based on eligibility & socioeconomic profile. Membership is not automatic. Indonesian has to apply & check with local government for eligibility

Salaried worker & Core Family*(Government Staff)

E.g. Police, military, member of parliament etc

Salaried worker & Core Family* (Private Companies)

E.g. staff at private companies

Non Salaried worker & Core Family* Entrepreneur & foreigner who works in Indonesia for at least 6 months

Not Working Investor, employer, pensioners, merdeka generation & their family

Component of BPJS – Member

*Core family means spouse & up to 3 kids. Coverage can be extended to include 4th kids & other extended family (e.g. in laws, grandparents etc) at additional fee

Primary Care Inpatient / Outpatient

Component of BPJS – Benefits

• Preventative Care (e.g. Vaccine)• GP consultation• Non specific medical treatment• Medication• Optic

Outpatient• Consultation, treatment• Specialist medical procedure• Implant • Forensic• Rehabilitation• Dialysis / Blood services• Cancer treatment

Inpatient• Room & Board• ICU treatment• Consultation (attending doctor

and specialist)

Cashless BenefitFirst layer of treatment is Primary Care

Referral letter will be required before entering into Inpatient / Outpatient careThere is no deductible / co-insurance / benefit limits

Component of BPJS – Funding

Paying Member*

(Eligible) Non Paying

MemberGovernment

BPJS(National Universal Health Insurance

Scheme)

Contribution

Cap

ital

BPJS’ network

providers

Polyclinic

General Practitioner (GP)

Public Hospital

Private Hospital

Reimbursement Model

*Paying member include: Salaried worker (Government Or Private), Non Salaried Worker

Component of BPJS – Funding

Paying Member*

(Eligible) Non Paying

MemberGovernment

BPJS(National Universal Health Insurance

Scheme)

Contribution

Cap

ital

• Paying member contribute regular premium to BPJS scheme

– Salaried worker contribute 5% of its monthly salary (4% from employer; 1% from employee). The share from worker is automatically deducted from their salary

– Non salaried worker would need to make monthly regular premium contribution

– Non working would have its premium paid by pension providers (i.e. government)

• Eligible Non Paying member will have its premium being paid by (national/local) government

• Government will act as final guarantor and will make additional contribution when scheme is in deficit. This funding will form part of government’s budget.

*Paying member include: Salaried worker (Government Or Private), Non Salaried Worker

Membership Category Monthly Contribution(As at 31 Aug 2019)

Eligible Non Paying Member IDR 0

Paying Member

1) Salaried worker (+additional family member outside core family*)

5% of Salary (+1% for each additional family member)

Salary cap: IDR 8mn

2) Non Salaried worker Class I: IDR 80,000 (USD 5.3)Class II : IDR 51,000 (USD 3.4)Class III : IDR 25,000 (USD 1.6)

Exchange rate used: IDR 15,000 / 1 USD

Component of BPJS – Funding

*Outside core family means family member other than spouse & up to 3 kids

HOWIs this low contribution premium made

possible?

Membership Category Monthly Contribution(As at 31 Aug 2019)

Actuarial Calculation Government’s Subsidy

Eligible Non Paying Member IDR 0 IDR 36,000 IDR 23,000 (USD 1.5)(the remaining cost is funded by cross subsidy

from Paying Member)

Paying Member

1) Salaried worker (+additional family member

outside core family*)

5% of Salary (+1% for each additional

family member)

6% 1%

2) Non Salaried worker Class I: IDR 80,000 (USD 5.3)Class II : IDR 51,000 (USD 3.4)Class III : IDR 25,000 (USD 1.6)

Exchange rate used: IDR 15,000 / 1 USD

Class I: IDR 80,000 (USD 5.3)Class II : IDR 63,000 (USD 4.2)Class III : IDR 53,000 (USD 3.5)

Exchange rate used: IDR 15,000 / 1 USD

Class I: IDR 0Class II : IDR 12,000 (USD 0.8)Class III : IDR 27,500 (USD 1.8)

Exchange rate used: IDR 15,000 / 1 USD

Component of BPJS – Funding

Government has been paying the bills via subsidy

Source: https://bpjs-kesehatan.go.id/bpjs/dmdocuments/b39df9ae7a30a5c7d4bd0f54d763b447.pdf

Component of BPJS – Funding

BPJS(National Universal Health Insurance

Scheme)

BPJS’ network

providers

Polyclinic

Public Hospital

General Practitioner (GP)

Reimbursement Model

Private Hospital

• BPJS will reimburse the cost incurred by

service provider in delivering service to

BPJS’ members

• Cost reimbursed has been pre-agreed

upfront

– GP: fixed monthly fee per member per

month

– Specialist / Inpatient: Paid according to

fee schedule

– Services: bundled according to

International Refined Diagnosis - Related

Group

• Done via Coordination of Benefit (COB) mechanism

• Benefits offered by Private Insurance• Higher class ward

• Admission into providers who may not be part of BPJS’ network of provider

• Premium• Members who opt for COB pay total premium to BPJS ; Or

• Private insurers collect premium on behalf of member who opt for COB

• Benefit payment• BPJS will cover payment on benefits provided by BPJS’ network of providers

• Private insurers will cover payment on benefits provided by non BPJS’ network

Component of BPJS – Collaboration with Private Insurance

Source: http://www.kresnainsurance.com/index.php/en/newsamm/854-bpjs-insurance-collaborate-with-private-insurance2

BUT….Member still have

to follow referral

process mechanism

before getting into

Inpatient /

Outpatient

treatment

BPSJ Kesehatan has been successful in widening its coverage towards goal of including all Indonesians

But….

Key challenges remain:

1.Ensuring sustainability of the scheme

2.Providing best service to members

Challenges - Overview

Realisation of national universal healthcare scheme

Ensuring sustainability of the scheme

Widening coverage to include all Indonesian

Providing best service to members

BPJS Kesehatan’s Mission & Vision

• Across calendar years, total membership has been growing from 121mn (year 2014) to 221 mn (31 Aug 2019)

• BPJS Kesehatan & government, has been effective in executing its mission to widen the reach of Indonesia national health care scheme towards target of 100% total population of 260 mn lives via;

• Implementation of ID infrastructure

• Enforcement of mandatory membership

• Improving premium payment facility etc

Challenges

Source: https://bpjs-kesehatan.go.id/bpjs/dmdocuments/b39df9ae7a30a5c7d4bd0f54d763b447.pdf

60

121

157172

187

221

0

50

100

150

200

250

300

2005(PT Askes)

2014 2015 2016 2017 2019

Mill

ion

Membership of Indonesia National Health Care Scheme

Total Member (million) Total Indonesia population (Est 2019)

BPJS scheme

What does it mean to Sustainability & Quality of Service?

Challenges - Sustainability

https://asia.nikkei.com/Economy/Indonesia-struggles-to-pay-for-huge-universal-health-care-program

Sustainability

Utilization

Benefit vs Premium

Political Climate

Challenges - Sustainability• Utilization is higher than expected

– Increase in demand as # member increased quickly

– Overconsumption (e.g. choice between Primary care vs Inpatient/Outpatient for patient with controlled chronic condition and patient who live in suburban with minimal medical practitioner)

– Adverse Selection (e.g. skip paying premium until sick, stop paying premium once recovered from elective surgery) and Fraud (e.g. hospital continuously using particular coding to submit claim reimbursement)

– Control of Benefit (e.g. is elective dental treatment & reading glasses medically necessary or cosmetic?)

• Benefits offered is higher relative to actuarially calculated premium. This means, the scheme will naturally runs into deficit

– As at Sep 2019, Indonesian finance ministry is prepared to pump IDR 13 trillion (USD 870 mn) to clear BPJS deficit

• At the end, funding vs sustainability decision depends largely on relevant political climate

– When is the right time to increase premium or remove subsidy? & what’s its impact?

Challenges - Sustainability

Political Climate plays role in Determining Funding & Sustainability

Challenges-Service quality (Anecdotal)

Quality of

Service

Queue Time

Under Capacity

Lack of access to

top specialist

This challenge likely apply to affluent segment of society

• Long queue time (as long as 3 months) particularly for

elective surgery

• Limited BPJS approved ward under private hospitals

– Lack of incentive for providers to join

– Some are concerned about liquidity of BPJS

• Lack of access to specialist doctor particularly those who

practice under private hospitals / GP

• BUT…. this may be view of some but not all members

• 8 in 10 surveyed feels satisfied with service provided by BPJS Kesehatan

• 7.5 in 10 surveyed feels satisfied with medical facility provided

Source: BPJS 2018 annual report

Challenges-Service quality

Majority of member surveyed feels satisfied with service & health facility provided by BPJS

• BPJS scheme (effective 2014) is Indonesia national universal healthcare scheme

• It is run and managed by BPJS Kesehatan (state owned) who ensure smooth operation and financial sustainability of the scheme

• Premium for member from low socio segment will be fully subsidized by government.

• It’s been successful in achieving its aim of widening coverage for all Indonesian

• Challenges remain• Ensuring sustainability of the scheme

• Providing best service to members

Summary

Presented by: Jairus Ng

A Comparison of Universal Healthcare in Singapore and Indonesia

1

Ag

en

da An Overview of the Singapore Healthcare System

2 Financial SustainabilityFund Experience, Source of Revenues, Expenditures

3 Healthcare Equity

MedisaveMandatory savings account funded by one’s income to pay for large inpatient

and selected outpatient bills.Contribute 8-10.5% of monthly salary MediShield Life

National universal healthcare insurance to help with large hospital bills and selected costly outpatient treatments

MediFundFor individuals who have exhausted all

available helpSubsidiesRange of subsidies to keep healthcare affordable

Singapore’s Healthcare Funding3M + S Framework

MediShield Life BPJS Kesehatan

Insured All Singaporean Citizens and PRsAll residents of Indonesia, including

foreigners

PremiumDynamic; Age-dependent, payable by

MedisaveStatic, Depends on Membership

SubsidiesDepends on household income and

age

Contributions for those in poverty or

near poverty are paid by the

government

Coverage

No exclusion but individuals with

serious pre-existing conditions are

required to pay additional 30%

premiums for the first 10 years

No exclusion due to pre-existing

conditions

Inpatient Coverage Yes Yes

Outpatient

Coverage

Yes, specific procedures related to

chronic diseaseYes

Annual Benefit

Limit

S$100,000 per policy year with no

lifetime limitNil

Lifetime Benefit

LimitNil Nil

Deductible Yes, Age and ward dependent Nil

Coinsurance

10% for outpatient; starting at 10%

then decreasing for inpatient and day

surgery, depending on bill

Nil

Universal Healthcare Coverage MediShield Life & BPJS Kesehatan

Key Features of MediShield Life and BPJS in Comparison

(Source: Ministry of Health, Singapore & BPJS Kesehatan)

▪ To provide protection for all Singapore Citizens and PRs against large hospital bills for life, regardless of age or health conditions (Source: Ministry of Health)

1 MediShield Life

▪ Provide the best service to members ▪ Widen coverage to include all Indonesians ▪ Ensure sustainability of the scheme

2 BPJS Kesehatan

Objectives

Financial

Sustainability

Premiums

Investment Income

Revenue

Benefits

Loading Charges

Expenditure

Fund Sustainability

Financial Sustainability is the positive state whereby revenues received exceed the expenditures

BPJS Kesehatan Deficit* (Cumulative)MediShield Life Yearly Claim & Reserve Experience

Financial SustainabilityFund Experience

Singapore Indonesia

As at end 2018, the Medishield Fund is valued at $7.1 billion, of

which three-quarters of the fund comprised of reserve to meet

future claims liabilities and the remainder to safeguard against

adverse scenarios. (Source: Ministry of Health)

The National Health Insurance Scheme (NHIS) has been in deficit

since its first year of inception, and is predicted to remain in deficit

for many years. (Source: BPJS Kesehatan, 2019 Projection)

Claims Paid Change in Reserve Incurred Loss Ratio*

Changes in 2016 due to introduction of MediShield Life

in Nov’15

Incurred Loss Ratio of 98%

over the period 2014 - 2018

Government provided

$724mil in premium

subsidies in 2018

Deficit Amount

According to the Finance Minister, shortfall between

spending and revenues primarily due to non-

payments of premiums from independent

participants

*Incurred Loss Ratio = (Claims Paid + Change in Reserve)/ Earned Premiums *Deficit = Claims Paid – Premiums Received

Financial SustainabilitySource of Revenues - Singapore

Age Employer EmployeeTotal CPF

Contribution Allocation for

Medisave

<35

17% 20% 37%

8%

35-45 9%

45-50 10%

50-55 10.5%

55-60 13% 13% 26% 10.5%

60-65 9% 7.5% 16.5% 10.5%

>65 7.5% 5% 12.5% 10.5%

CPF Contribution and Medisave Allocation

MediShield Life Premiums

▪ MSL Premiums payable by Medisave

▪ Premiums are age-dependent, and it increases with age

▪ 30% loading for policyholders with pre-existing conditions

▪ Range of subsidies available to help pay for MSL premiums

CPF Contributions and allocations rates change to reflect the changing needs as we age.

(Source: CPF Board)

Gradual increase to prepare for healthcare

needs in the old age

Contributions mostly to Medisave

Financial SustainabilitySource of Revenues - Indonesia

Membership Categories

Contributions No. of

Members (Millions)

Payment Collectability

Contributing

Salaried Formal Workers

- Government Staffs

- Private Companies

5% of their salary, up to a salary cap of IDR 12M

(4% paid by the employer and 1% by the

employee)

5195%

(Government)100% (Private)

Non-salaried workers in

Informal Sector

Unemployed

Pay a fixed contribution between IDR42,000 and IDR160,000 per monthly

38 50%

Non-Contribu

tingPBI

Fully subsidised by the government

132 100%

1. Inadequate Contributions

2. Static Contribution Rates that does not reflect changing needs at old age or adjusted for higher risk-profiles

3. No formal avenues to collect contributory premiums, especially from workers in the informal sector

(Source: BPJS Kesehatan)

Membership Contributions and Collectability

Issues related to sustainability

Financial Sustainability

2. Capitation Payment System causes providers to underprovide or over-refer patients

Membership Categories Claims Ratio

Salaried Formal Workers- Government Staffs - Private Companies

105% (G); 70-90% (P)

Non-salaried workers in Informal Sector Unemployed

300 – 400%

PBI 70%

Healthcare Expenditures Singapore

1. Cost-containment measures in place to ensure fund sustainability

2. Fiscal prudency and targeted subsidies

Indonesia

1. High Claim Ratio in the Informal Sector due to Adverse Selection

3. Private-public partnership is required to absorb growing enrolment, however private clinics have higher capitation rates

3. Management of private-public partnership is important to prevent buffet syndrome

Claim Ratio grew quickly

over the years and the industry

experienced a loss margin of 7.2% in 2016.

Which eventually lead

to premium hikes

Healthcare

Equity- World Health Organisation

“Fair opportunity to attain their full health potential and that no one should be disadvantaged from achieving this potential”

Healthcare EquityAccess to affordable healthcare

IndonesiaSingapore

1

2

3

1

2Restrictions and cost containment measures further limit its effect in financial protection

High out-of-pocket expenses, and saving nature of Medisave scheme place greater burden on low-wage earners

Measures in place to bridge the equity gap, and claim limits are periodically reviewed to ensure costs are affordable

Uneven geographical distribution of healthcare facilities limits those living in rural access to quality healthcare services

Improved access to healthcare for the low-income and vulnerable group

Prepared by: Robin Hu

A Brief Introduction on

P2P Mutual Healthcare

Funding in China

39

Background & Product Design

• Background on overall healthcare landscape in China

• Xiang Hu Bao’s product design (Critical Illness)

Product Comparison

• Comparison against Traditional Life Company

• Pros and Cons of Xiang Hu Bao

Product Statistics

• Xiang Hu Bao’s customer profile

• Analyze claim payout rate and premiums

Looking ahead

• Potential market space for P2P product

Overview

Xiang Hu Bao, a 1 year old online mutual aid

platform, has reshaped health coverage landscape

and redefined the definition of insurance

XIANG

HU

BAO

Non-CIRC

REGULATED

CIRC

REGULATED

Traditional Insurance Company

CIRC licensed and Centralized Company,

subjected to C-ROSS Framework

National Healthcare

Security System

Government funded medical

coverage for all residents in China

InsureTech Company

CIRC licensed and Centralized Company,

subjected to C-ROSS Framework

Crowd Funding

Platforms are available to raise

funding to back patients

Charity Donation

Local charity organizations receiving

donations from general public

Current Market Overview

Xiang Hu Bao LaunchXiang Hu Bao is a fully decentralized, blocked chain powered product. It was first

launched on Alipay App in Oct 2018 by Ant Financial, it provides basic protection

against 100 types of critical illness with no upfront premium payment required. Till

now, it has reached a total customer base of 100 Million customers

1 2 3 4 5

16 Oct 2018 1 Nov 2018 27 Nov 2018 8 May 2019 27 Nov 2019

6

31 Jan 2020

TIME ELAPSED

19 13

Launch of Xiang Hu Bao

3 Million signed up within 3 days

CIRC Regulated

20 Million Customers

Within 1 month after launch

Change of Name (保→宝)

No longer under CIRC’s

regulation

Launched Xiang Hu Bao for

seniors above 60s

Achieved 100 Million customers

within 1 year after launch

Free death cover due to

COVID is added

*Xiang Hu Bao requires a minimum of 3.3 Million participants to be in-forced

(per claim SA=300K RMB, 10% expense, min premium = 0.1 RMB, hence the min # of participants to get started = (300K * 1.1) / 0.1 =

3.3 Million)

Fixed Critical Illness Benefit

• Age < 40, SA = 300K RMB

• Age ≥ 40, SA = 100K RMB

Coverage

• Zero upfront premium payment

• Upon claim, participants share

cost

Premium

• Sesame Credit Score > 650

• Age < 60

• Online Health Declaration

Eligibility

• Renewal of scheme is NOT

guaranteed

• Ant Financial can terminate XHB

at its own discretion*

Renewability

Product Design

Health Declaration

Pre-existing

Condition

Medical History

Claim History

No claims history with any insurers for

claims amount of RMB 20,000 &

above. No history of insurance

policy/application ever been declined,

postponed or accepted on special

terms (i.e. loading, exclusion).

In the last 2 years, no history of medication

taking for more than 30 consecutive days or

hospitalization stay for more than 15

consecutive days. Have not received

inpatient treatment or been advised by a

physician to receive inpatient treatment.

• Tumor, cerebral infarction, brain hemorrhage, heart disease,

renal dysfunction, hepatitis (including carrier), liver cirrhosis,

aplastic anemia, SLE, rheumatoid arthritis, hypertension (grade

2 & above with systolic ≥160mmHg or diastolic ≥ 100mmHg),

diabetes, Parkinson’s disease, epilepsy, mental illness,

infectious disease, HIV/AIDS, chronic obstructive pulmonary

disease, paralysis;

• Unconfirmed benign polyps, nodules, cysts, lumps.

Customer Journey

Inceptionof

Xiang HuBao

HealthyMember

ConfirmedPatient

90 DaysWaitingPeriod

Upload Evidence

Ant FinancialVerification

CommunityVerification

SA Payout

Re-reviewedby

Ant Financial

PublicAnnouncement

Auto Deductionfrom Alipay

Eligible forCompensation

300KSubmit Claim

7th and 21st ofeach month

No Objection

Objection

14th and 28th ofeach month

Age < 40

Age ≥ 40 100K

• Family

Alipay platform made it extremely easy to purchase for family

members, hence nearly 20% of sign-ups are through family

• Cancer

54% of claims incurred while one is working away from his

hometown. Out of which, cancer made up the highest claims,

with Thyroid Cancer, Breast Cancer, Lung Cancer as the most

common cancer types

• Youth

More than half of Xiang Hu Bao participants are from the 80s-

90s generation

• Poor

60% of participants come from Tier 3 and below cities which

generally are less developed with limited insurance access.

Their annual income is less than 100,000 RMB

XIANG HU BAODEMOGRAPHIC

Sick While Away from Hometown

54%

Sign-ups by Family

19%

80s-90s Generation

58%

Rural & Suburb Area

60%

Xiang Hu Bao Claim Cost

• Take up rate is steadily growing over the past one year

• Claim cost increased drastically once waiting period finishes

• Huge spikes in claim at XHB’s one year anniversary

• Per person claim cost starts to taper down after one year

Traditional vs Xiang Hu Bao

• Premiums are known and Pre-paid• Centralized Mechanism• Company bears insurance and

investment risks

• Payments are determined post claim• Decentralized Mechanism• Participants bears insurance,

investment and catastrophic risks• Coverage is not guaranteed

8%

Fixed Premiums

Value Chain

100%

Customer

80% 65% 55% 40%

20%

10%

10%

• Customers are paying much more than what protection actually cost

• Xiang Hu Bao’s mechanism by-passes all these charges and bring the basic back to customers, behaves like a mutual

fund with critical illness trigger

Distribution Cost

Management

Expense

15%Cost of Capital

Operating Profit

Protection

Market Integration• Ant Financial covers more than just

insurance, ranging from investment to

healthcare to banking

• Vertical and Horizontal Integration

Accessible Protection• Simple & Intuitive Design

• Affordable Price

• Basic Protection Coverage

Flexible• Join & Cancel Anytime

• Hassle free onboarding

process

Cross-selling• Create Protection Awareness (1 in 6

buys an insurance plan within 6 month)

• Cross-sell other insurance productsHigher Online Traffic• Hot topic of discussion

• Brand awareness

• Higher Conversion Rate

(Policies offered by partner

insurance companies

increase by 60% in sales)

12

4

5

3

Xiang Hu Bao’s Advantages

Floating ClauseDefinition of major illness and payout amount

can be adjusted at XHB’s own discretion.

E.g Thyroid cancer (Early Cancer, 50k SA)

SustainabilityAs participants age, claim cost share

per person increases, how far are

participants willing to share the cost

Anti-SelectionWhen claims increase, healthy lives

leave, unhealthy lives remain, worsen

situation

Non-RegulatedNot recognized as an insurance product,

government can call off this form of P2P

mutual funding and leave participants

unprotected

Xiang Hu Bao’s Shortcomings

How can insurance industry adapt to constant market disruption?

ProcessCumbersome onboarding process

Tedious underwriting questions

RegulationRegulator’s reaction to

market innovation new

entrant

InnovationProduct innovation,

Blockchain Technology

DistributionHigh distribution cost through

traditional intermediated

/advisory based distribution

01 02

04 03

In the near Future

Food for Thoughts?

• Universal Health

• Universal coverage vs Sustainability

• P2P mutual healthcare funding

• Its benefits and shortcomings

Questions & Answers

Postponed: Q2 2021

AUGMENTED ACTUARY:THINK GLOBAL, ACT LOCAL JOINTLY ORGANISED BY

RESORTS WORLD SENTOSA

JOINT SAS-IAAHS

HEALTH CONFERENCE

2020 SAS Conferences

The SAS is planning virtual and land-based conferences in 2020. Tentative plans include:

- Virtual Health & Retirement Conference (August/September)

- Conference Superweek (mid November)- Land-based (if possible)

- Practicing Certificate Seminar

- Volunteer appreciation dinner

- Half-day to one-day conferences by Life, GI, Health, Retirement, ERM, Data Analytics

We thank our 2020 SAS sponsor, China Re, for making the above plans possible. We also need additional sponsors. More sponsorship means we can deliver high quality conferences for our members.