A healthy investment

Wang Guojun, a professor of the School of Insurance and Economics at the University of International Business and Economics in Beijing, says that post-1990s consumers have a higher recognition of insurance than previous generations. For one thing, the awareness of risk control is increasing among younger people. For another, there are more products available on the internet, which conforms with their online shopping habits. The supply also diversifies both in service and price.

"Major clients of the insurance industry are employees aged from 30 to 60. When the post-1990s generation grows older, and sees income rise and risks accumulate, they will gradually become the main source of insurance consumption," Wang adds.

Yuan Simin, an insurance agent in Beijing, says over the last two years, about one-seventh of her clients born after 1990 have actively consulted the issue with her, and most of them bought health insurance.

"Some of them told me that they constantly feel fatigue, have poor sleep, or have lumbar pain or back ache. Some said they often work overtime, stay up late and don't have meals regularly, while some have heard of people who die young. All this leads to worries about their health," Yuan says.

She says before signing the contract, she will talk to clients face-to-face, learning their future plans, major concerns and other conditions. Whoever is planning to buy health insurance, for example, has to fill out a detailed questionnaire about their physical condition. "You have to be honest about it, so that the compensation can be provided smoothly," she adds.

Different from clients in the 1980s, who often bought insurance for their children first, the younger generation tends to better protect themselves and plan in advance, in order to not leave a burden on their parents, she says, adding that they often don't have much budget for it because they also have to pay for rent, or have plans to buy housing or a car.

Yuan suggests that consumers invest 10 to 15 percent of their annual income on health insurance, and the ideal solution would be a plan that covers around three to five years of life expenditure.

As many effective, imported drugs are very expensive, and not covered by the government's medical insurance list, additional medical insurance is important, according to Yuan.