Allianz China Announces 12.5% Rate Increase for 2025: What It Means for Companies in China
Allianz China (or Allianz Jingdong General Insurance Company, also known as ‘AZJD’) has announced that, effective April 1, 2025, the Compass Plan (SME Product) and Standard International Plan will see an average price increase of 12.5% for both renewals and new business.
This adjustment is higher than One World Cover’s 2025 projected medical trend for China of 9.2%, raising important questions for businesses evaluating their health insurance strategy. Given that medical trend represents the expected increase in healthcare costs due to inflation, utilization, and pricing dynamics, a 12.5% increase suggests Allianz is factoring in additional pressures beyond standard market projections.
READ MORE >> One World Cover 2025 Medical Trend Report
Breaking Down the Reasons for the 12.5% Increase
Allianz has cited several key factors influencing its decision to raise premiums:
Rising Medical Inflation:
- Allianz highlights that hospital care costs — including staff salaries, facilities, equipment, and energy — continue to rise.
- This is consistent with broader market trends, but OWC’s data suggests that efficient cost management and claims oversight can help mitigate these pressures.
Increased Utilization Since COVID-19:
- Allianz notes that people are seeking treatment more frequently, both for medical conditions and preventative care.
- This aligns with what OWC has observed: a post-pandemic surge in healthcare utilization, particularly for outpatient services.
- However, not all insurers have responded with double-digit increases— many OWC clients have kept renewals within single digits by leveraging proactive claims monitoring and plan design adjustments.
Rising Cases of Severe Medical Conditions:
- Allianz reports an increase in major medical claims, especially for cancer treatments — a key driver of rising costs.
- While this is a legitimate concern, OWC believes that early intervention, preventative healthcare measures, and data-driven negotiations with insurers can help schools and businesses manage these risks more effectively.
How Should Businesses in China Respond?
Evaluate Your Renewal Strategy Companies facing double-digit increases should assess whether their current plan aligns with long-term sustainability goals. Have you considered whether your plan structure, insurer, or claims management approach needs adjustment?
Compare Market Options Not all insurers are applying a 12.5% increase. Some businesses will find better value elsewhere, especially if they work with a broker that actively negotiates renewals and manages claims performance.
Leverage Data for Cost Control One of the key differentiators for organizations that keep renewals below trend is real-time claims monitoring. If your insurer isn’t providing transparent, monthly claims reporting, you may not have the visibility needed to take early action.
Allianz Remains a Strong Option
Despite this increase, Allianz remains one of the most reputable tier-A insurers globally, known for:
- Best-in-class servicing for multinational businesses
- Extensive direct billing networks in China and worldwide
- Strong financial backing and brand recognition
OWC partners with Allianz in China and all other markets worldwide. If your company is looking for a robust, high-quality health insurance solution, we can help you evaluate Allianz’s options and compare them with alternative solutions.
Interested in a quote or renewal consultation? Contact us today.
Michael Pennington, Customer Experience Director, One World Cover – [email protected]
