China Health Security Industry Report 2018 Health · Mutual-aid · Fintech · Blockchain & Big Data iResearch Consulting | 2018
China Health Security Industry Report 2018 Health · Mutual-aid · Fintech · Blockchain & Big Data iRe
China Health Security Industry Report 2018
Basic medical insurance is insufficient for catastrophic illnesses.
Low-income population lacks adequate protection.
Prevention + relief integration.
Risk sharing and customized care services.
Transparent, traceable risk pooling.
Social networks empower sharing economy in healthcare.
Internet finance eases medical cost pressure.
Reduce financial burdens from high treatment fees.
Transparency and strong social ties build user loyalty.
Foundation for sustainable growth.
📑 Report Index · Core Chapters
📖 Health Security Platform Definition
Health security platforms provide complete solutions from critical illness prevention to post-illness救助 (aid).
They integrate “Internet + mutual aid + insurance” and use technology to share high medical risks.
The three-tier system includes: crowdfunding for critical illness, health mutual aid, and online insurance (e-insurance).
Source: iResearch expert interviews
Blockchain and social networks enable transparent risk sharing, filling the gap left by basic insurance and traditional commercial products.
🌍 Birth of Health Security Industry
Economic factors: High costs of major illness treatment create a huge funding gap even after basic insurance.
Technological factors: The internet, big data, and blockchain enable new risk-sharing models.
Socio-cultural: Public demand for efficient, transparent, and standardized charitable platforms.
The “sharing economy” expanded from mobility to medical assistance, fostering rapid growth of health security platforms.
⏳ Evolution & Market Consolidation
The number of health security platforms surged after 2016, most starting with critical illness crowdfunding.
By late 2016 to 2017, capital chain issues and profitability challenges emerged.
The number of platforms dropped from hundreds to several dozen, underscoring the need for compliance and transparency.
Initial boom → disorderly growth → consolidation
Leading players like Qingsongchou built sustainable business models using tech and trust as moats.
🏥 Limitations of Basic Medical Insurance
According to the 5th National Health Service Survey, basic insurance coverage is extensive, but low-income urban workers still have a participation gap.
Average out-of-pocket expenses per hospitalization far exceed the annual income of low-income groups.
This gap directly drives demand for mutual aid, crowdfunding, and health security platforms.
⚠️ Market Opportunity: Critical Illness Crowdfunding
In 2013, average hospitalization expenses placed tremendous strain on ordinary families.
Population aging further exacerbates the financial risks of major diseases.
Health security platforms enable risk pooling among many members, becoming a social necessity.
🔸 By 2030: 16 trillion RMB (Healthy China 2030 blueprint).
Health security platforms occupy the core position linking users, medical institutions, and insurers.
📈 Macro Health Service Market Outlook
From 2012 to 2017, China’s health industry market size expanded linearly, with a significant CAGR.
Health security platforms remain in early stages, with substantial room for user base expansion.
The total addressable risk market is worth hundreds of billions, attracting young internet users through inclusive designs.
Crowdfunding → Mutual aid → E-insurance conversion funnel
🔗 Health Security Industry Chain
Critical illness crowdfunding: Strong social ties for targeted fundraising.
AI review + blockchain traceability — funds go directly to hospital accounts.
Health mutual aid: Members deposit small amounts in advance.
When a member falls ill, costs are evenly shared under foundation supervision.
Online insurance (e-insurance): Scenario-based marketing.
Platforms partner with insurers to offer customized protection with high conversion efficiency.
Traffic entry → risk control → fund custody → health services
These three segments form a closed loop: prevention, assistance, and indemnity.
💡 Business Model: Consumer-centric
User pain points: sudden catastrophic illness, urgent need for large funding, and cumbersome traditional procedures.
Health security platforms leverage the internet to provide rapid fundraising, transparent information, and fund traceability.
- Immediacy: Launch fundraising or mutual aid application within hours.
- Cost-effectiveness: Mutual aid per capita cost is extremely low.
- Inclusive coverage: No income threshold for major illness mutual aid.
Revenue streams: insurance commission, health product mall, advertising & value-added services, ensuring sustainable growth.
🤖 Tech-driven Value Creation
Artificial Intelligence: Human-machine collaboration reduces audit costs and improves relief efficiency.
Blockchain: Distributed ledger provides immutability and full traceability of fund flows, enhancing trust.
Big Data: Enables symmetric medical information, smarter clinical decisions, and personalized insurance recommendations.
Lower OpEx → User trust → Cross-selling
Technology solves long-standing information asymmetry issues in charity and traditional insurance.
🏅 Benchmark: Qingsongchou (Easyfund)
Founded in 2014, Qingsongchou built an integrated closed loop: “crowdfunding + mutual aid + e-insurance”.
It obtained an insurance brokerage license and launched value-added services (green channel, online clinic, health mall).
✔ Conversion rate for a single e-insurance product as high as 13%.
✔ Over 5 million e-insurance policyholders.
Blockchain + AI strengthen risk control; recognized by both the government and users, achieving a virtuous cycle between commercial sustainability and social impact.
User loyalty is driven by strong social relationships and second-word-of-mouth propagation.
📊 Mutual Aid Scale & E-insurance Funnel
User scale advantage accelerates fundraising speed and improves risk control.
Larger mutual aid member base expands the fund pool; each member’s per-case contribution declines, boosting engagement.
Scenario-based health awareness campaigns lead to insurance conversion rates far exceeding offline or traditional online channels (up to 13% for single SKU). Monthly premium micro-insurance enhances repurchase willingness.
⚠️ Core Dilemmas Ahead
User trust is the cornerstone of the law of large numbers and risk sharing mechanisms.
Risk control heavily relies on authentic information from recipients and transparent fund allocation.
These two factors determine the platform's credibility and ability to attract new users.
Blockchain and big data effectively reduce moral hazard, ensure capital turnover efficiency, and preserve the sustainability of mutual aid.
⚡ Challenges: Regulation & Cross-sector Rivalry
With surging user volumes, national regulations will raise entry barriers and accelerate industry consolidation.
Competition extends beyond mutual aid and crowdfunding into the broader health service, medical, and financial sectors.
Future success requires strong resource integration and compliance capabilities.
Players must strengthen compliance, deepen tech application, and differentiate services.
🔮 Future Development Trajectory
Big data will match user profiles with service providers for personalized health management.
Blockchain enables fully traceable capital flows, decentralized trust, and lower risk control costs.
Platforms will integrate healthcare providers (rehab, telemedicine, diagnostics) to offer a one-stop health experience.
The health security platform will evolve into a super-ecosystem covering prevention, treatment, and financial resilience.
📌 About iResearch Consulting
iResearch focuses on data-driven insights, empowering enterprises with market intelligence.
This report is based on expert interviews, desk research, and iResearch econometric models.
All copyrights reserved. No part may be reproduced without written permission.
© iResearch Consulting 2018. For reference only; does not constitute legal liability.
