The ASEAN region presents a diverse picture when it comes to healthcare systems and insurance. In the ASEAN Insurance Pulse Survey by Malaysian Re, industry leaders have a somewhat mixed perception of the regional healthcare system, rating it from satisfactory to partly satisfactory. The systems and financing mechanisms vary greatly among the member nations. For instance, Brunei and Thailand have tax-funded universal healthcare, while Indonesia and the Philippines rely on contribution-based national health insurance.
Private health insurance, which was worth around $7.5 billion in 2023, is popular among the affluent urbanites. However, in Myanmar and Cambodia, out-of-pocket expenditures still account for a large portion, 70% and 55% respectively as of 2021. The demand for private health insurance in ASEAN is on the rise. This is due to factors like increasing disposable incomes, better literacy and internet access, and a greater awareness of health coverage benefits, especially after the COVID-19 pandemic.
Nevertheless, the outlook for ASEAN healthcare systems is not without challenges. Rising costs, ageing populations, and the growing burden of chronic diseases such as diabetes, cancer, and cardiovascular issues pose significant hurdles. Public systems, mainly funded by government expenditure, find it difficult to maintain quality and accessibility with mounting financial pressures. Private systems, on the other hand, are grappling with medical inflation, unclear pricing, and overutilization of services, which are causing health insurance premiums to soar. Industry players are looking at strategies like stricter cost controls, risk reduction, and partnerships to deal with the rising claims costs, and also emphasizing prevention, education, and the use of digital health technologies to improve the overall situation.
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