In 2004, the Narada Foundation released an article entitled A Survey on the Status Quo of the Development of Human Resource in the Social Sector, which stated that 34.6% of employees working within the public service sector are not covered by social security. Excluding Guangdong, the average monthly income of staff within the social sector is lower than the local average with the greatest gaps in Shanghai and Beijing.
In response to the growing demand for insurance for those working in the social sector, the China Social Welfare Foundation initiated a program called “Yi Bao”, which provides affordable private insurance (non-governmental provider) for people in the public service sector. New China Insurance, a private insurance provider, is the first to provide insurance specifically for individuals working within this industry. As they are pioneers in this field, the created their business model without any existing data and research on the target group. New China Insurance previously worked with an NPO called the China Rural Kids Care Program in providing disadvantaged kids with basic health insurance. It was this work that led to the creation of insurance for the third sector industry.
The basic plan has an annual cost of RMB205 per person and covers up to RMB100,000 of critical illness care, RMB100,000 personal accidental, RMB10,000 medical expenses and RMB500,000 group medical expenses. The group medical expense allows the insured to apply for extra RMB10,000 medical expenses if needed. There are minimal requirements to apply. The applicant must work full-time for a social nonprofit organization. Nonprofit organization registration can be difficulty and applicants may work for registered nonprofit organizations as well as business-registered and unregistered ones.
As a pioneer in this industry, Yi Bao not only offers social security for nonprofit organizations staff in a sustainable way but the program itself represents a successful case of collaboration between social sector and corporate industry.
Contributed by Joy Yong