Zurich survey: 1.7 million Hongkongers don't have healthcare protection

A newly released survey shows that more than a million Hongkongers don't have any kind of healthcare protection, plumping to spend their cash on investments, entertainment, shopping, and housing instead.

Zurich Insurance Hong Kong (hereafter Zurich) has conducted an online survey regarding local knowledge of medical expenses, showing that 27% of respondents did not purchase any form of individual medical coverage. Among these respondents, 40% of men and 33% of women said they did not have any income to spare on medical insurance.

Based on its results, Zurich has predicted that in Hong Kong, there are about 1.7 million adults aged over 20 or above facing a healthcare protection gap.

Some respondents weren't forced to decline insurance because of low income but simply prefered spending on other investments or entertainment. For example, 13% of men spent their on cars and housing, while the same amount of female respondents said they spent their money on travelling and shopping.

"The survey findings reflect that the public still underestimates the importance of medical insurance," said Fiona Kwok, CMO of Zurich.

"As local medical costs continue to soar, relying solely on group insurance and savings may be insufficient to pay for even basic medical needs, not to mention the tremendous costs if a critical illness strikes. This must not be a back burner topic in the midst of rising rates of young people with illnesses in the city with the longest life expectancy."

The survey also found that 35% of respondents, who were also prior claimants, were not fully compensated, and 90% had to pay more than 10% of the medical expenses out of pocket. The main reason (57%) behind this was the claim exceeded the maximum limit of individual benefit.

Additionally, even though plenty of insurance products offer deductible options, the survey revealed that the public's understanding of them was low. 45% of respondents were not clear on the very concept of a deductible. For those who understood, 41% were confused over the "higher the deductible, lower the premium" correlation.

The waiting period was another area that claimants were concerned over. In the survey, 49% of respondents with individuals plans were prior claimants, of those 71% revealed it took 10 days or more to receive their claim result notifications. The average duration was 17.6 days.

In light of the Hong Kong government's launch of the Voluntary Health Insurance Scheme (VHIS) in April, 71% of respondents who were interested in purchasing VHIS said "full coverage of medical expenses" captured their attention most.

Lastly, 30% said VHIS would be more desirable if it offered comprehensive international coverage.

"Medical insurance is a significant lifetime investment, so flexibility, including job mobility and relocation, should be an integral part of the purchase decision," Eric Hui, CEO of Zurich commented.