The Hong Kong Federation of Insurers (HKFI) welcomes the release today (11 July 2011) by the Food and Health Bureau of the outcome of the second-stage public consultation on the proposed health care reform.  We are pleased to note the firm indication of majority public support for voluntary health insurance.  This comes as no surprise for the industry as evidenced by the growing popularity of health insurance.  The health insurance market, in terms of the premium size, has grown by more than 70% from HK$6.1 billion in 2005 to HK$10.7 billion in 2010.

The way ahead has been confirmed.  What is required next, which is much more challenging and unpredictable, is for the Government to produce a practical and intelligent design of the proposed voluntary scheme and make it work. 

To achieve the intended objectives, the scheme would have to fulfil some basic conditions including:

• members of the public need to be convinced that the ultimate design of the scheme is good for them and it is affordable;

• the scheme must contain sufficient incentives to encourage a sizeable number of people of different risk profiles to participate;

• the scheme is sustainable financially in the long-term;

• the proposed supervisory framework needs to cover all stakeholders including insurers, doctors, hospitals and scheme members.

"We support the proposed scheme in principle," said Mr Alex Chu, Chairman of the HKFI.  "We all understand the importance of getting details of the scheme design right.  And we are more than ready to take an active part in working with the Government to come up with a scheme which is practical, efficient, actuarially sound and commercially viable, whilst providing a positive health insurance solution to the people of Hong Kong."