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As of August 1st 2013, international private medical insurance provider Nordic Health Care will discontinue issuing new plans, marking the insurers exit from the market. Nordic, a health insurer under Europæiske Rejseforsikring’s travel insurance, will also no longer be accepting plan renewals that are not contractually obligated.

Plans which are contractually obligated to be continued will see premiums increase by about 60%. Despite the disappointing news, Bupa International has announced they will offer Nordic customers special conditions and terms if they choose to switch to Bupa coverage.

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International health insurance giant, Bupa International, continue to focus their development in the Asia region with particular interest in the China market. There have been a number of successes and announcements recently supporting Bupa International’s move and focus. Read more

Internationally renowned health insurance group, Bupa, has been expanding its teams of people and forming new acquisitions that will help to increase the company’s international presence.
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In addition to Bupa’s  April 1st premium adjustments for their Premier Worldwide Health Option plan (PWHO), which caters to the China market, the leading health insurance provider has also announced major changes to their child coverage.

Some of these changes have left Globalsurance parents with Bupa plans feeling concerned. Children have typically been separated into two brackets based on age, a 0-6 bracket and a 7-20 bracket. Children that fall into the first bracket are likely to see premium increases of about 25-50%, while children in the older bracket will only see premium increases of around 6%. The result of this decision now makes it more costly to insure a child that is under the age of 6 than one in the 7 to 20 age range.

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Globalsurance customers recently received good news with the release of Bupa‘s updated premiums that will take effect on April 1st. The premium adjustments reflect Bupa’s ability and commitment to keeping their plan pricing stable and strong. The company’s proven consistency in what they are able to offer customers is good news for the many loyal Bupa customers who have stuck with with the leading international health insurance provider. Read more

One of the signs that Dubai is continuing to show recovery after the 2008 Financial Crisis is through the growing health insurance industry. Many of the leading health insurance providers in the region  are all reporting increasing numbers of insurance quotes and information requests from people interested in obtaining medical insurance.

Globalsurance continues to expand its services and operations in the region, attributing the influx to more and more inquiries from new clients and expatriates that are relocating to Dubai.

Tim Slee, Global Sales Director for Bupa International commented on this growth:  “There is an exciting new level of increased activity across the Middle East, this increased interest has led to a strong conversion rate of international medical insurance sales in the UAE.” Bupa International has seen encouraging performances and maintains a strong presence in the region because of the diversified products they offer with their cooperation with Globalsurance.

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The distribution of offshore International health plans to wealthy individuals in South America has been a successful and lucrative market for many decades. IHI Denmark in particular, had built a considerable amount of its success in this part of the world over the years. In 2012 however, a combination of location regulation and poor plan performance has resulted in most key offshore providers pulling out of Latin America.

Bupa and IHI Bupa, who had perhaps the biggest offshore portfolio in South America, have stopped selling offshore plans into the market. In 2004, Bupa took over the IHI portfolio after acquiring IHI Denmark. The insurer then went on to purchase US-based AMEDEX Insurance in 2005 which serviced 100,000 people in 42 countries throughout Latin America.

Bupa are now looking to push the Latin American product range, citing reasons for the change being driven by compliance requirements. Several countries in Latin America have raised the stakes as international insurers are now exposed to draconian punitive fines for selling health policies within their country without a license. These potential fines are measured in sizeable percentages of global revenue. Bupa’s response is understandable; as they try to fill the gap with onshore Bupa Latin America plans (Bupa LA is now available in Brazil once more). However, Globalsurance analysts believe that Bupa’s offshore plans were better value for money, and that clients can now find deals from local onshore providers who have become competitive. That said, clients in the region are sensitive to branding, and the Bupa brand remains strong, thereby enabling it to access a large part of the market.

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Globalsurance can confirm that Bupa International’s medical inflation rate has come in below long term average which is good news for clients. Global medical inflation in the international Private Medical insurance (iPMI) market has been running at 10.8 percent on average for the past 5 years so although Bupa’s increase looks high by most inflation measures, it is actually typical within the iPMI sector.

Bupa International is unique as an insurer in that it has a bi-annual premium rate increase for individual international private health insurance policies and it changes its premiums twice per year – on the 1st of April and the 1st October. Earlier this year, Bupa adjusted its premiums by 6 percent and then by 4.3 percent this October meaning an effective rate of yearly medical inflation of 10.3 percent.

These changes relate to all of the company’s Worldwide Health Options (WHO) and Lifeline health insurance products.

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In a move that has caught agents and brokers off guard, Nordic Healthcare, a provider of international health insurance, has announced that it will cease sales of new individual policies in all but its core markets.  This means that, with immediate effect, Nordic will no longer be issuing new IPMI policies anywhere in the world except Europe, Singapore, Hong Kong, Thailand and Vietnam. The announcement deals mainly with individual clients, it is understood that corporate business will be assessed on a case by case basis. This announcement follows close on the heels of Nordic’s announcement earlier this year to pull out of South America.

Although Nordic will no longer be accepting new business in areas outside of the aforementioned countries, it insists that all existing policies will continue to be renewed and that customers with policies currently in force will not be affected in any way, a move that is warmly welcomed by clients and intermediaries. To date, Nordic has continued to treat its existing customers fairly and  continued to support them even after pulling out of selling new business in a particular market.

The move appears to be an attempt by Munich Re, the owners of Nordic, to make the Nordic Healthcare business more compliant. Historically many international private health insurance providers were prepared to sell a policy to an expatriate in almost any country, particularly to individuals. The nature of the business and associated regional regulation, means that insurers, mostly based and licensed in Europe, have been selling policies to client anywhere in the world in an uncompliant way. All insurers are regulated in their home country, but because international health insurance policies are aimed at non nationals and are sold by foreign brokers or insurance companies, they fall into a grey area (particularly individual policies) which makes it difficult for local regulators to exercise any oversight of their operations. Most regulators require an insurance company to have a local presence before it can sell insurance products to nationals, but it is not always worth the investment for an insurer to open a local office if the IPMI market in a particular country is very small, and in many countries the legal requirements to be registered as an insurance provider represent a large financial commitment.

In the past twelve months, many insurers have been making efforts to become regulated in key markets. Recent moves by Bupa and Allianz in China and Aetna in Singapore are early indicators of an industry wide shift taking place.

This drive to be more compliant  explains Nordic’s actions as far as most of Asia is concerned, withdrawing from poor or developing countries with very small expat populations will not affect Nordic’s balance sheet much. What is puzzling is that they have also stopped selling new policies in China and South America, some of the biggest emerging markets around. Nordic is the only European insurer to have made such a massive exodus, it has obviously deemed the risks high enough to justify pulling out of such potentially lucrative markets. Whether this move is reflective of internally motivating factors for Nordic Healthcare or whether it is more indicative of issues brewing in the wider IPMI market is difficult to tell.

It is possible that Munich Re will follow the lead of Bupa and launch a locally based IPMI product in China, where it is seeing 20% annual growth in its reinsurance business, and is clearing the way for a similar move by pulling Nordic’s operations from the region. It is hard to imagine Nordic have completely abandoned the region since China is such a valuable market for all types of insurance business. While there is bound to be more than regulatory pressure involved, right now, we can only speculate as to what is really happening, whilst keeping an eye out for more developments that are sure to follow soon.

Globalsurance has learnt that Bupa is launching a new product for the Chinese market. Bupa has teamed up with China based Alltrust Insurance Company to provide Bupa Premier Worldwide Health Options (PHWO), which becomes available from the 1st of October. PWHO is unique in that it will consider covering pre-existing medical conditions, a first for international private medical insurance plans in China.
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In this article we will first present our findings of the premium increases and premium inflation rates in each region and country we studied, with specific insurance findings to be presented at the end. Overall our findings were that International Private Medical Insurance (iPMI) premium inflation was very high, at roughly 10.8 percent per year over a 5 year average. While variations exist between countries, the reality is that iPMI inflation rates were extremely consistent throughout the world. However, it is important to note that this is medical insurance premium inflation at the high end of the sector, and not necessarily with regards to the mass market.

Even presenting the argument that premium increases are fairly consistent on a global basis, there are some immediate outliers – Hong Kong, for example, runs at an iPMI premium inflation rate of roughly 13 percent per year, while Kenya’s premium inflation rate is approximately 9 percent per year. Although there is a difference in premium inflation rates between Hong Kong and Kenya, the difference is not overly substantial – as will be seen inside this report.

Globalsurance is pleased to reveal the results of our latest study on the international health insurance industry and rates of international medical insurance inflation around the world as of August 1^st 2012.

Using 7,916 data points from 8 different International Private Medical Insurance providers in 10 different countries, Globalsurance has been able to successfully identify a number of trends within Global Medical Inflation for individual International Private Medical Insurance (iPMI) plans during the time period from 2008 to 2012. iPMI is a subsector of the greater health insurance industry which services the global population of expatriates and international High Net-Worth individuals.

The companies sampled in the studies use Age and Geographical Area of Coverage as the main variables in their premium calculations. By selecting a sample which is community rated Globalsurance has been able to efficiently identify the actual rates for premium increases in different parts of the world. Our measure of inflation is based on a sample of policies, ages, and published rates for each insurer included in the study. Globalsurance selected the most common age groups and most common policy types for our data points to achieve realistic measurements in relation to medical insurance premium inflation around the world.

While individual insurance providers and underwriters may disagree with our findings, the figures represented in this report are based on our sample and present baseline figures for all of the regions and companies we chose to consider.

It is important to note that, unlike the recent Towers Watson Report on Medical Trends, the data contained in the Globalsurance insurance review is not survey based. Rather than looking at individual responses and feelings in reference to levels of health insurance premium inflation, which may have some inherent bias dependent on the respondent, Globalsurance is analyzing the actual premium data from insurance companies with exposure to the world at large, over locally based providers operating in a single country.

Additionally, we have analyzed premium data, and not healthcare pricing data. Consequently the figures represented in this report are indicative of the levels of healthcare cost inflation which insurance perceive to be in place in the locations we sampled; profit and operating costs of the individual insurers are assumed to be unchanged. While the increase or decrease in premium values may point to actual rates of medical inflation in the countries which were included in the study they do, in fact, represent the increased costs placed on policyholders.

However, it should be noted that, while the figures contained in this report are the actual rates of iPMI premium increases for the duration of the study, the removal of Age and Policy type means that the figures presented in this study of International Medical Insurance premium inflation can be used as a suitable proxy for rates of actual medical inflation in relation to healthcare costs around the world. It should be noted that the proxy does not represent medical inflation across the entire healthcare sector within a country or region; for example, NHS cost increases in the United Kingdom are not evident in our findings. The rates of iPMI premium inflation are only a proxy for healthcare costs in High-End, private medical facilities in the countries which we considered, due to the basic nature of the international medical insurance products we are studying.

So, without any further ado, here is the Globalsurance International Insurance Review:

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There have been a number of notable changes in International Private Medical Health Insurance in the last few weeks, while not as earth shattering as the Libor scandal or the crop failures in the US, the progressive and continual changes reveal an industry that is currently very dynamic and competitive. While Bupa is launching products to fill gaps it sees in the IPMI market, US healthcare giant UnitedHealth Group is steadily working to increase the scope and quality of their international healthcare cover. Medicare International has been tuning their products to keep them competitive, and have made efforts to keep premium increases down to a minimum.

Bupa, one of the world’s largest insurers, has recently announced a new range of international private medical insurance products called Bupa Flex. Until now, international health insurance policies were only available for a minimum of one year, but Bupa Flex aims to provide the benefits of traditional long term international medical cover without the usual 12 month minimum duration. It is aimed at international travellers and expats who are planning to be abroad for a period of between 3 to 11 months. Now, people moving abroad for short term transfers can tailor the duration of their policy to their exact needs. It offers benefits above short term travel insurance because policyholders can increase the duration of their cover at any time, and even convert to long term health insurance without a loss of or break in cover.

An innovative aspect of Bupa Flex is that it is managed online. Bupa has created a secure online portal called Membersworld, through which subscribers can manage almost every aspect of their insurance cover. The portal allows clients to access their policy documentation, request pre-authorisation for planned treatments, submit claims and access live 24 hour webchat with experienced advisors. The service also uses email and SMS alerts to notify members of the status of their claims, or to alert them that there are documents online which require their attention.

Bupa Flex comes in two flavours; Bupa Flex and Bupa Flex Plus. The basic plan covers inpatient and day care treatment, local air and road ambulances costs, and outpatient surgical operations. Bupa Plus adds a full range of out-patient coverage as well. Because of the short term nature of the products, there are no options to add maternity, newborn care or cancer benefits. Both plans have a total limit of GBP1 million (USD 1.7 million) and do not offer cover in the United States.

NIB and Unitedhealthcare International Join Forces in Australia

NIB, Australia’s fifth largest health insurer, and UnitedHealthcare, based in Minnesota, have signed a strategic partnership whereby NIB will support UnitedHealthcare’s international health insurance members in Australia. The deal gives UnitedHealthcare International customers access to NIB’s network of healthcare providers in Australia, which includes more than 500 hospitals. It extends UnitedHealthcare’s customers direct settlement options at a wider range of healthcare facilities in Australia, like dentists and opticians.

UnitedHealthcare sells international expat medical insurance, under their Global Solutions brand, to employers with employees based internationally. “UnitedHealthcare International’s clients are benefiting from our expanding global health care network, providing their employees with seamless access to high quality health care. A growing number of our clients have operations in Australia, and they now will have access to top hospitals and care providers there,” said Simon Stevens, president of Global Health at the UnitedHealth Group.

The company recently set up a similar alliance with Dubai-based Al Sagr National Insurance Company, to expand their Global Solutions coverage to seven countries in the Middle East. Through this alliance, UnitedHealthcare members have access to local services in the Kingdom of Saudi Arabia, UAE, Jordan, Qatar, Oman, Bahrain, Lebanon and Kuwait.

NIB currently provide healthcare cover in Australia to about 20,000 international customers, and are aggressively working to position themselves for expansion into the international healthcare market. “We have a view that increasingly people will need global health insurance cover and that if we don’t have an involvement in this phenomenon we could be missing an enormous opportunity,” said Mark Fitzgibbon, CEO of NIB.

UnitedHealth Group serves 75 million people worldwide through its family of US and international health and well-being businesses and are the market leaders in supporting employers with international workforces.

While there is no reciprocal agreement in place for NIB customers in the USA, NIB may be hoping to expand their international healthcare coverage through partnerships of this kind.

Medicare improves international health cover

Medicare International has made a number of improvements to its international health insurance products.

Organ transplantation and HIV/AIDS benefits will now be included in their International and International Plus policies at no extra cost, with the transplantation benefit carrying a limit of USD 170,000 for the International, International Plus and Executive plans which rises to USD 340,000 with the Executive Plus plan. The HIV/AIDS benefit will be subject to a two year waiting period, and will have a lifetime limit of USD 17,000 across all plans.

Maternity and complicated or abnormal pregnancy cover available on the Executive and Executive Plus packages will no longer be subject to an excess of 20% and 30% respectively.  and the 20% co-payment on newborn care has been scrapped. The reduction in out-of-pocket expenses may be a welcome change, as simplifying and streamlining the process at a stressful time may increase the perceived value to policyholders.

Claims are also no longer subject to a USD 5100 limit for group and individual claims, but claims are now fully recoverable and without any cap, subject to the policy limits of USD 1.7 million per annum.

Price rises for 2012 have also been well below the expected annual medical inflation rate of 12-14%, with an average increase of 8% for individual plans and just 5% for group policies. With the current state of the economy, it is a welcome change to see policies undergo significant improvement while still keeping premium increases in check.

The competitiveness of the International Health Insurance market, the rising demand and scope for growth into developing parts of the world, like East Asia, are keeping insurers on their toes. We can expect a continuing stream of innovative products and new solutions as insurers contend for market share.

Established in 1996, Jordan based Arab Orient Insurance Company is currently one of the leading providers of general insurance in the Middle East.

Operating as a subsidiary of Gulf Insurance Company, AOIC prides themselves on reliability, quality and superior customer service and believes these characteristics have helped them to dominate the competitive market whilst showing consistent growth over the years.

With the Middle East rapidly becoming a global business hub, the economy of Jordan continues to grow and entice expanding businesses. AOIC has reacted positively to this change and has grown along with the country in which it is based. However, the company has always envisioned expansion in their future and hopes to be the first local company to establish an international presence for themselves by expanding wherever possible.

British international insurance giants Bupa are helping to fulfill this desire and have signed an agreement enabling AOIC to offer worldwide international health insurance as well as improve the quality of their local insurance services.

The collaboration will undeniably have a positive impact on both parties by combining AOIC’s local expertise in Jordan with Bupa’s knowledge and experience of global health insurance.

Bupa first entered the Middle East insurance market over 10 years ago when it successfully planted its roots in Saudi Arabia and formed Bupa Arabia. Now the kingdom’s largest health insurer, Bupa will undoubtedly continue to make its mark on the Middle Eastern health insurance industry by forming this positive partnership.

AOIC will continue to offer a range of insurance products, but those offered in the health sector will now be serviced by Bupa International and as a result, members of such products will be able to receive treatment in more than 7500 participating hospitals and clinics worldwide as well as the 24 hospitals in Jordan that have now been added to Bupa’s ever expanding network.

Deputy CEO of AOIC’s Medical insurance and customer care Mustafa Melhem is pleased by the prospects the partnership can offer, hoping they will now be able to offer customers an even more personalised experience with unique custom-made plans to fit their personal requirements.

AOIC has high hopes for its development and believes its continuous growth will help place Jordan in amongst the list of top countries providing the best insurance services in the Middle East.

With the backing power of the worlds leading expatriate health insurance provider now behind them, there is a good chance they will be able to do exactly that. Furthermore, the reputation that Bupa carries both in the UK and internationally should not only benefit AOIC but should positively impact the Jordanian insurance market as a whole.

It is partnerships such as these that enable Bupa to stay ahead of the game in international health insurance and it appears that the Middle East may witness many more alliances in the future.

As medical services grow more and more costly around the world, international private medical insurance providers are trying to ensure that their policies provide good value for money while maintaining high levels of benefits.

In many countries, including such places as the US and the UK, the cost of medical services has been rising throughout recent years. In the US, the S&P Healthcare Economic Composite index showed an annual growth rate of 5.11 percent for the fiscal year that ended in October, outstripping the 4.74 annual growth rate reported in September by a significant margin. S&P’s Healthcare Commercial Index, which takes into account only healthcare costs covered by commercial insurance, saw its fourth consecutive month of rising annual growth rates to arrive at 6.91 percent for the year ended October.

Across the pond in the UK, there are similar stories with healthcare company Bupa releasing a study that predicts the costs of cancer treatment will rise steadily in the future. The report Cancer Diagnosis and Treatment: A 2021 Perspective was aimed at trying to make predictions about the cost of treating cancer over the next 10 years. The results estimated that the cost of treating cancer will rise by approximately 62 percent, meaning that while cancer treatment for someone in 2010 may cost on average around £30,000 (US$46,487), it will cost £40,000 (US$62,007) on average by 2021.

With premium costs over the last decade being pushed up by almost 10 percent a year due to medical inflation, insurers globally are recognizing that while everyone may like policies with extraordinary benefits, cost is a point of consideration for many. As 2011 comes to an end, some international health insurance companies are beginning to introduce changes to services or flexibilities to payment structure and cost-sharing to ensure that customers get value for money while maintaining high levels of benefits.

International private medical insurance provider, MediCare International, has introduced new excess structures that clients may select if they so choose that give policy discounts of up to 50 percent. The new options allow for four levels of excesses, offering discounts that range from 10 percent, 20 percent, 35 percent and all the way to 50 percent depending on the selected size of co-payment.

Another company that is reevaluating their products is Allianz Worldwide Care, which has revealed that it is trailing a new system of medical evacuation. Typically, if a policyholder finds themselves in a situation which necessitates medical evacuation, they are put on an air ambulance and either transferred back to their home country, or to the nearest center of medical excellence, depending on the particulars of the policy. The new option for transport will transport medically stable policyholders on commercial flights while they are accompanied by one of Allianz’s own doctors.

Allianz Wordlwide Care’s Medical Director, Dr. Ulriche Sucher, explained that “Many of our corporate clients have employees working in remote regions within Eastern Europe, Asia, Africa and Latin America, where sparse medical facilities means a greater reliance on evacuation services following a medical emergency. Plus, advancements in medical treatments and medical specialism in specific countries means that sometimes patients need to be brought to another country to receive the care that they need. Added to this is the increase in natural disasters such as storms, earthquakes and floods which can result in people needing medical treatment at a time when the closest medical facilities may have been damaged,”

While air ambulances will still be used in cases where the policyholder is in an emergency situation which requires emergency evacuation to the nearest quality medical facility, the new medical escort service is expected to bring large cost savings with it, especially for large corporate clients. The service is expected to be introduced after a 12 month trial proves successful.

Companies Mentioned

Allianz

Allianz Group is one of the leading global services providers in insurance and asset management. With a worldwide network of 153,000 employees, the Allianz Group serves 75 million customers in over 70 countries. Allianz offers a wide variety of insurance products to both private and corporate customers, including motor, accident, general liability, fire and property, legal expenses, credit and travel insurance. Allianz provides life and health insurance products on individual and group basis. Allianz is the market leader in the German market and has a strong international presence in insurance.

MediCare International

With 25 years of providing expatriates top quality international health insurance, Medicare International has grown by ensuring quick and easy access to their services 24 hours a day. The company currently covers clients from 86 nationalities in 114 countries around the world.

British United Provident Association (BUPA) have seen their overall revenues increase by 6 percent in the first half of 2011, overcoming the global economic downturn largely on the back of the continued strong performance from its expatriate insurance and overseas healthcare operations. Bupa now intend to build upon this momentum and further develop their international medical distribution network, expanding the scope and rage of their operations in the Asia Pacific region in particular.

Bupa’s interim report showed that overall half year revenues were £3.9 billion (US$6.14 million), with underlying surplus rising sharply up by 35 percent from £162.1 million (US$255.16 million) to £247.2 million (US$389.12 million) for the period. These figures came as Bupa’s home UK market experienced a slight contraction, while their worldwide customer base rose by 1 percent to 10.7 million. International sales from Bupa’s Asian, Australian, Latin American and Middle Eastern operations have helped the company offset the loss of growth in previously dominant markets. The British healthcare conglomerate is now exploring new ventures to move forward with its international development strategy.

Bupa has long identified India as a prime target for further business development. The health insurance market in India is in a nascent stage, with low coverage rates and the majority of expenditure on healthcare coming out of patients’ pockets. However, with a population exceeding 1.1 billion people and a projected 600 million in the middle class by 2025, the country offers significant potential going forward. Bupa wants to capitalize on this huge demand. By their measurements, over seventy percent of healthcare expenditure in India is private and over 90 percent of what is spent is not insured.

Bupa entered the Indian health insurance market in 2010 through a joint venture partnership with Max India Ltd, launching a standalone private health insurer named Max Bupa. The Max Bupa Health Insurance joint venture now has a presence in nine large cities and has established a network link with over 700 hospitals across India. For the financial year 2010-11, Max Bupa’s premium from direct business written stood at Rs 254.6 million (US$5.18 million) and profit before tax was Rs 1162.4 million (US$23.65 million). Bupa has found themselves in a strong position in India through their MaxBupa venture already, with a sound reputation and over 100,000 insured customers in a market that is set to expand as economic conditions strengthen.

Max Bupa are now shooting for Rs 700 million (US$14.25 million) worth of new business premiums in India by the end of the fiscal year. To help achieve these goals, the insurer has been in negotiation with rural banks, co-operative banks and post offices this month to expand its distribution network and effectively engage the rural, largely underinsured, masses across India. Max Bupa has traditionally offered and promoted its insurance products through its agency force, telemarketing, direct sales or online channels. However, in order to reach the more remote areas of the country, gaining access to more entrenched business network, like community banks and post offices, becomes a vital tool. Mr Neeraj Basur, Chief Financial Officer of Max Bupa, explained to the press on Tuesday that establishing bancassurance relationships would allow the company to progress considerably. “Bancassurance is a good model for distribution of insurance products. Regional and co-operative banks have the kind of reach and expertise in this area so we want to tap them,” Mr Neeraj Basur said.

Talks are already well underway to distribute Max Bupa insurance policies through a tie-in with five regional and co-operative banks in Maharshtra, India’s second most populous state. Further expansion has been curtailed however by national regulatory roadblocks. Under existing Insurance Regulatory Development Authority (IRDA) law, commercial banks in India are only allowed to distribute the insurance products from one life and one non-life insurance company to bank customers. This has proven to be a particularly big obstacle for standalone health insurers like Max Bupa, as the non-life sector encompass a wide array of business lines, including automobile, property and creditor insurance, and thus could have a multitude of companies with differing products competing to fill a bank’s allocation. Max Bupa’s Chief Executive, Dr Damien Marmion, assured reporters that the company would work with regulators to address this regulatory issue, and that they would not be the last insurer to suffer from it “We are in talks with IRDA to allow banks to sell products of standalone health insurance companies alongside those of the life and non-life companies. The industry is in talks on this issue and something could emerge soon,” Dr Marmion said.

Indian state governments will want regulation dissuading private health insurance investment to be dealt with as well. Many states are keen to rope in private insurers to help bring scores of poor and unorganized workers into the fold of health insurance. For these reasons the Rashtriya Swasthya Bima Yojana (RSBY) scheme was launched by the Indian Ministry of Labour and Employment on April 1st 2008, tasked with providing sufficient health insurance coverage for families living Below Poverty Line (BPL), and to better protect them from the financial liabilities that arise out of health shocks involving hospitalization. The RSBY scheme is a cooperative venture between the Indian government and private health insurance companies. Insurance companies offering RSBY coverage are vetted and selected by the State to administer health insurance policies on behalf of the Indian government. Premiums are subsidized by the Indian government with the Central and State organizations splitting costs 75 percent and 25 percent respectively.

Max Bupa wants to provide health insurance cover under the government-sponsored healthcare scheme and to ultimately make it a commercially viable activity for the company. The insurer is currently bidding for the RSBY distribution rights in three states, with plans to design more appropriate cost-effective products for the unorganized labor market. If Max Bupa is able to find success through the RSBY scheme it could prove that health insurance products and providers can achieve results in what was previously considered to be an unprofitable market.

Insurance Companies Mentioned

MaxBupa

Max Bupa Health Insurance is a 74:26 joint venture between Max India Limited and UK-based Bupa. Bupa is a leading private healthcare provider with more than 10 million customers worldwide and over 60 years experience in the health sector. The Max India Group has expertise in both health and insurance related services including hospitals, clinical research and life insurance.

Bupa

Bupa is a leading international healthcare provider, offering personal and corporate health insurance, workplace health services and health assessments. The insurer today has ten million customers in over 190 countries, and over 52,000 employees around the world.As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world. Bupa has operations around the world, principally in the UK, Australia, Spain, New Zealand and the US, as well as Hong Kong, Thailand, Saudi Arabia, India, China and across Latin America.

New research released today by Max Bupa, a leading India-based private health insurance joint venture between Max India Ltd. and Bupa, has revealed some interesting insights regarding people’s differing attitudes and perceptions towards chronic diseases and other medical concerns around the world. Of particular note has been the poor health and general wellbeing reported for their home Indian population, and Max Bupa are now developing programs to address this.

Bupa Health Pulse 2011 is the second annual international survey commissioned by Bupa. Between 22 April and 23 May 2011, the international healthcare group surveyed over 13,000 people from the following twelve countries: Australia, Brazil, China, Hong Kong, India, Mexico, New Zealand, Saudi Arabia, Spain, Thailand, the United Kingdom and the United States of America. Quotas were set and data was weighted so as to be nationally representative by gender, age and region across all markets involved.

The principle finding made evident in the Bupa Health Pulse 2011 study is the fact that many of the people surveyed, regardless of what country they are from, are not getting enough regular physical activity, even if they were aware or in fact suffering from long-term medical conditions that exercise could aid or help prevent. Over half of the respondents (55 percent) told Bupa that they did less than two hours of exercise a week, with nearly 1 in 5 (18 percent) admitting to usually doing no physical activity at all. This particularly alarming when you consider that more than a third of all respondents (38 percent) claimed to suffer from heart disease, depression, asthma or another common long-term ailment, all of which require some degree of modest physical rehabilitation to treat and ultimately prevent against.

Among the countries surveyed, respondents from Brazil and Saudi Arabia claimed to do the least exercise, with a third of the people from each country saying they did none at all. China and the United States, meanwhile, were the countries where people committed to the most physical activity, with 58 percent of Chinese and 55 percent of American respondents indicating they did at least two hours of exercise a week. These numbers will all hopefully improve as over 60 percent of those surveyed indicated that they wanted to do more to improve their physical condition.

Bupa’s international healthcare survey further disclosed the reasons why people were not getting as much physical activity as they’d liked or hoped. The poll cited work commitments as the chief barrier to exercise, with nearly half (48 percent) of worldwide respondents reporting it as their greatest issue, followed then by a general lack of motivation (18 percent), lack of time to work out (15 percent) and cost concerns (17 percent). These obstacles varied sharply depending on the location of the respondent. Among the developed market countries, such as Australia, the UK and the US, lack of motivation was consistently regarded as the main obstacle to doing more physical activity. In the fast emerging economies like Brazil, China, India and Thailand, time and price were the more prevalent obstructions to exercise. When asked what it would take to get people to exercise more, nearly two thirds of all those polled thought that training with friends or as part of a group could help regulate and improve their health and wellbeing habits. Over 70 percent also thought that improved self reliance in setting specific goals and biometric targets could improve their motivation.

When dissecting the results along gender lines, the study found some interesting contradictions in attitudes towards health. Bupa Health Pulse 2011 showed that while men worldwide are more likely to feel overweight in comparison to women (27 to 23 percent response), women are more eager to shed the pounds, with 52 percent wanting to lose weight versus 45 percent of men. Male respondents were also twice as likely are females to feel personally unhealthy (68 to 32 percent affirm). Women reinforced this data by indicating a greater concern about their partner’s health over their own and were more awareness of mental health issues.

Max Bupa has focused on the data released specifically about the Indian market, where the country’s most productive age group looks to face the most pronounced losses due to health problems. According to Bupa’s international survey, around 40 percent of Indians surveyed were classified as unhealthy, while one out of every 10 was technically obese. More than half of the Indians surveyed (57 percent) did less than two hours of exercise a week last year. Of these respondents, it is believed the 25-34 age group will lose the more productivity due to medical illness in the coming years. Diabetes and heart disease have remained the key health concerns among Indian respondents.

The rapid development of the Indian economy has lead many of the people coming up in the country to neglect their health and wellbeing due to the strenuous hustle of daily life. More than half of Indians polled by Bupa (61 percent) thought that their work commitments were preventing them from exercising more and making healthier lifestyle choices. The report further highlighted that 55 percent of Indians had been for a medical check-up to assess the risk of developing a chronic disease, while 25 percent of Indians had not been for any health checks, below the 31 percent international average of people not seeking medical consultation to assess health risks.

Max Bupa is using these concerning health statistics as a platform to launch its ‘Health Promise’ program. Health Promise was launched this week as the company’s first bold attempt to promote greater health and wellbeing awareness in India. Through its new website, www.YourHealthFirst.in, Max Bupa will provide necessary lifestyle and fitness advice to encourage policyholders to make a promise to improve their health for both themselves and their beneficiaries.

Speaking at the launch of the campaign, Shefali Chhachhi, Marketing Director for Max Bupa explained that the insurer was committed to improving the lifestyle of their clients as well as promoting the idea of living healthy to the Indian populace at large. “Max Bupa wants to help people put their health first and be their health partners for life helping them live healthier and more successful lives. Through this initiative we want people to take the first step towards being healthy by stating their health concern for their loved ones and we will help them in addressing these concerns, by providing them expert advice and access to quality healthcare.”

Insurance Companies Mentioned

MaxBupa

Max Bupa Health Insurance is a 74:26 joint venture between Max India Limited and UK-based Bupa. Bupa is a leading private healthcare provider with more than 10 million customers worldwide and over 60 years experience in the health sector. The Max India Group has expertise in both health and insurance related services including hospitals, clinical research and life insurance.

Bupa

Bupa is a leading international healthcare provider, offering personal and corporate health insurance, workplace health services and health assessments. The insurer today has ten million customers in over 190 countries, and over 52,000 employees around the world.As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world. Bupa has operations around the world, principally in the UK, Australia, Spain, New Zealand and the US, as well as Hong Kong, Thailand, Saudi Arabia, India, China and across Latin America.

The United Arab Emirates is working hard to revise many of its regulatory policies to better conform to GCC laws, applicable through its membership in the Gulf Union. This restructuring effort could involve the adjustment and merger of some of the nation’s legislative and regulatory institutions, most notably the dissolution of the UAE Insurance Authority.

The insurance sector has continued to develop admirably in the United Arab Emirates. The Insurance Authority’s most recent report revealed that the total volume of underwritten insurance premiums in the UAE was AED22 billion (US$6 billion) for 2010, a 10 percent increase over the AED 20.1 billion (USD 5.5 billion) recorded in 2009. The total invested funds in the insurance sector meanwhile topped AED 27.6 billion, with national companies enjoying more of the windfall than ever before.

The UAE, long known as a broker market, has retained an institutional distinction between banking and investment services. Banking has been supervised by the UAE Central Bank, while insurance services are regulated through the UAE Insurance Authority. This has unfortunately resulted in numerous grey areas whereby regulators have been unable to properly apply and monitor their market reforms. Reorganizing the relationship between the Central Bank and Insurance Authority will hopefully produce a standard set of regulations across the UAE to properly address risk and guarantee the necessary consumer protections now required in a global economy.

Sources close to the situation have confirmed that the UAE Insurance Authority will likely be dissolved later in the year. The institution was first established in 2007 to oversee and pass legislation governing the regulation of the insurance industry in the UAE, including accreditation for both local and foreign registered insurance entities. In the wake of the global economic downturn, the Insurance Authority began tightening its regulatory efforts to closely match their regulatory frameworks in line with best industry practices elsewhere. The Insurance Authority was among many regulators in the Gulf at the time seeking to better police the insurance industry, particularly the intermediary sector. These businesses were failing to comply with the new capital requirements first set for brokers in December 2006. Last year, the Insurance Authority singled out and removed almost sixty firms, now leaving around 145 brokers still standing in the region. These efforts have lead to the institution extending its supervision to insurers already regulated by other bodies in the region, such as the Dubai Financial Services Authority, which also created perhaps an oversight redundancy.

To date the UAE Insurance Authority has issued nine licenses to insurers who wish to operate in the Emirates insurance industry. In March, the institution put forth draft resolutions aimed at better controlling investments within the country’s insurance market. The proposal would both set maximum limits on funds invested as well as minimum cash reserves held by active insurance firms that would be proportional to their standing capital. The Insurance Authority has also recently embarked on a process of unifying its electronic database across all insurance companies in order to soon provide a one-stop location for those interested in UAE motor vehicle insurance online, with the option ready to extend its services into other countries in the region as well. It is hoped that efforts likes this will gradually lead to either a harmonization of requirements across the region, or reciprocal arrangements between the various countries, and ultimately allow for better cross-border provision of services

Similar to other Middle Eastern states, the UAE authorities have also expressed concerns about the dominance of the expatriate workforce in the local insurance sector. Fatima Mohammed Ishaq Al Awadhi, deputy director of the Insurance Authority, intimated that the UAE may not give approval for another insurance firm to operate in the country unless it employed a sufficient number of Emirate citizens. Out of 7,271 employees currently working for insurance companies in the UAE, only 397 are citizens, an ‘Emiratization’ rate of 5.5 per cent.

The regulatory tasks and responsibilities of the Insurance Authority will be redistributed to other organizations as the institution is phased out during the year, including the issuance of new licenses for insurance, financial and investment companies looking to set up business in the country. More specifically, responsibilities for the license accreditation of UAE investment companies will be removed from the jurisdiction of the Security and Commodities Authority (SCA) and bestowed upon the Central Bank, while licenses involving insurance companies and brokerages (previously the Insurance Authority’s responsibility) will be now reassigned to the SCA. The SCA has also been authorized to monitor and process the licenses of all brokerages in the financial sector as well. These consolidation moves have been made to make domestic regulatory authorities better adhere to international best practices.

The increased involvement by the Central Bank in the insurance sector comes as the UAE considers setting up a system to guarantee small bank deposits of below AED1.5 million (US$410,000). Similar insurance plans were approved for larger deposits earlier in the year as part of a strategy to better ensure long-term financial stability in the region. The amount insured would either be carried by the banks or jointly by both banks and depositors as it is in financial systems in other countries. Many bankers in the region have thus far rejected the proposal citing unnecessary costs and the UAE banking sector’s strong capital position as a guarantee of stability.

Other countries in the Gulf region have also been busy updating their regulatory infrastructure and implementing social reforms to address institutional difficulties. This week, the Kuwaiti government signed an insurance contract worth GBP 1.8 million (US$2.8 million) with BUPA to provide private health insurance for all Kuwaiti students currently pursuing higher education in the United Kingdom.

BUPA currently serves over 2,000 students in the UK, and provides the necessary experience to ensure Kuwaiti expatriates will be well protected while abroad. The insurance policy with BUPA will include treatment for most medical and dental services available in both private and public hospitals and clinics. While visiting the United Kingdom it is important to have health coverage. The British government has renewed efforts to clamp down on the abuse of its NHS services by foreign nationals.

Kuwait Health Minister Dr. Hilal Al-Sayer told reporters that this deal demonstrated Kuwait’s intentions to provide the best services for its students to help them better learn and compete with their counterparts from other countries on more equal footing. The Ministry also planned to raise allocations for foreign medical treatment across the rest of Europe and the US. This policy was important as it would enable Kuwaiti expatriates to better adjust to high standards of living in European countries, the minister added.

Insurance Companies Mentioned

Bupa

Bupa was established more than 60 years ago in the UK and now has ten million customers in over 190 countries, and over 52,000 employees around the world. Bupa is a leading international healthcare provider, offering personal and corporate health insurance, workplace health services and health assessments. As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world. Bupa has operations around the world, principally in the UK, Australia, Spain, New Zealand and the US, as well as Hong Kong, Thailand, Saudi Arabia, India, China and across Latin America.

Bupa Asia Pacific, Australia’s largest privately owned health insurer, has delivered exceptional results for 2010. The company reported a 26 percent rise in after-tax profits as a result of pronounced increase in premium revenue coupled with a recovery in investment income.

Bupa Asia Pacific was established in 2008 as a $2.4 billion (US$2.63 billion) merger between Bupa Australia and MBF Australia Limited. The acquisition of MBF made Bupa the largest private provider of health insurance in the country. Today Bupa Asia Pacific covers over 3.2 million members in Australia, across an array of brands including, MBF, Blink Optical, HBA and Mutual Community.

According to Bupa’s latest accounts filed with the Australian Securities & Investments Commission (ASIC), earnings for the company increased $48 million (US$52.5m) to a total of $228 million (US$249.4m) for the year ending December 31. Revenue earned from health insurance underwriting rose by over $280 million (US$306m) to $4.24 billion (US$4.6b), a 7 percent increase for the year. These results followed an increase in claims made by Bupa policyholders, costing the company $3.65 billion (US$ 3.9b), a 5.6 percent increase on 2009’s expenses.

In 2010, Bupa Asia Pacific sold MBF’s previous life insurance and wealth management business operations to Clearview Wealth Limited, a financial services group, for $204 million. Bupa then acquired Peak Health Management and eye-care business, Health Eyewear, for around $10 million (US$11m) in total. The accounts further reveal that Bupa Asia Pacific paid $211 million (US$230.8m) in dividends to its parent company, down from $332 million (US$363m) in 2009, the first year following the MBF merger.

Bupa experienced a $31 million (US$34m) rebound in investment income during the year, rising up to $119 million (US$130m), which after assorted costs and expenses, gave the insurer a pre-tax profit of $331.5 million (US$362.6m) for 2010, $90 million (US$98.5m) ahead of 2009’s total. The company filed $97.5 million (US$106.6m) in tax together with a $5 million (US$5.5m) loss from discontinued operations, all of which totaled cumulative earnings of $228 million (US$249.4m).

The health insurance industry is closely regulated in Australia. The premium amount which private insurers can charge customers is directly monitored by the Federal Government. Every year, insurance companies provide the government with details of whether and how much they plan to alter their health coverage premiums in order to protect their business and guarantee that they remain a solvent operation in Australia. Once those rates are calculated and granted permission, they are systematically applied from April 1 of the following year.

Bupa’s accounts, along with those of its rival Australian insurers, have benefited from the recent substantial (almost 6 percent in 2009) industry-wide increase in the accepted cost of health insurance in the country. According to the accounts, about $17 million (US$18.6) of the rise in Bupa’s profits can be attributed to the increase in premium revenue. Last month the company was permitted by the government to further raise their premiums again. Their projected average premium increase of 5.14 percent, however, remains the lowest of the principal health funds in Australia.

Private health insurance companies in Australia have traditionally operated within narrower profit margins than the global insurance industry average and remain more concerned with maintaining good underwriting and long term viability in the country. Companies must hold minimum levels of capital above prudential requirements to make certain they can meet their obligations to policy holders and continue to operate. Increasing premiums grants the insurers necessary capital to more adequately cover any adverse events, potential volatility in benefits, as well as to enable further investments and expansion in their business. These factors will eventually improve the quality of service for insurance policyholders in Australia.

Private health insurance coverage is not mandatory for Australians. The Australian healthcare system features both state and private-run institutions. Medicare was established in 1983 to provide Australians with free universal coverage for medical treatment in addition to a scalable reimbursement scheme for outpatient services. The Pharmaceutical Benefits Scheme is also prepared to subsidize medical prescriptions. Australia apportions around 8.5% of its GDP towards healthcare, on par with other OECD countries. The Medicare system remains principally funded through general revenue. Those above a certain income who remain exclusively on Medicare are liable for a Medicare Levy Surcharge, which is assessed at 1% of taxable income.

The Australian Government has introduced incentives and insurance rebates to encourage more people to obtain private health coverage to ease both the financial and structural burden that the large numbers of aging patients are placing on the public healthcare system. The measures introduced in the past decade have had their desired effect with more Australians investing in their own health then ever before. The insurance industry has grown significantly as a result.

Bupa has been a successful player in the Australian insurance market for many years. The British based company has in fact seen its successful business in the Asia-Pacific region take on a more prominent role in the company’s overall growth strategy. Bupa is expecting challenging conditions to continue in its traditional established markets in the UK and the USA. Operations are expected to grow in the emerging economies, particularly in the populous Asian, Middle Eastern and Latin America regions, where there has been an increasing demand for quality health insurance coupled with a growing middle class that can afford such services.

Insurance Company Mentioned

Bupa

British United Provident Association (BUPA) was established more than 60 years ago in the UK and is now has ten million customers in over 190 countries, and over 52,000 employees around the world. Bupa is a leading international healthcare provider, offering personal and corporate health insurance, workplace health services and health assessments. As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world. Bupa has operations around the world, principally in the UK, Australia, Spain, New Zealand and the US, as well as Hong Kong, Thailand, Saudi Arabia, India, China and across Latin America.

British United Provident Association (BUPA) announced results for the year ending 31st December 2010, with strong international sales contributing to a 9 percent jump in revenue to total £7.58 billion (US$12.12 billion) for the year.

However, the health insurers’ surplus before taxation expense was down by 72 percent to £118.0 million (US$188.8 million) from £416.5 million (US$666.4 million) reported in 2009, mainly due to goodwill impairments of £249.2 million (US$398.7 million).

Bupa’s overall revenue was up 9 percent compared to 2009 reaching £7.58 billion (US$12.1 billion); this reflects a 4 percent growth from organic activities and a 5 percent benefit from favourable foreign exchange movements. The key drivers for improvements in sales were Bupa’s international businesses in Asia, Latin America, Australia and Saudi Arabia; the improvements from these sources offsetting static sales in the UK, North America and Spain during 2010.

Bupa’s underlying surplus before taxation amounted to £464.9 million (US$743.8 million) representing a 9 percent improvement year-on-year primarily down to the positive performance in Australian and Asian healthcare markets.

The Bupa Health and Wellbeing UK (BHW) brand also produced sound results contributing to the health insurer’s profit margin following the restructuring of this business sector.

Bupa struggled in some established markets – particularly in the UK, US and Spain – during 2010, with new sales remaining static in line with the very tough economic conditions applicable in western hemisphere countries.

Buoyant sales in Asian, Latin American and in Middle Eastern countries, along with a new business activity in Australia, helped the company offset the loss of growth in previous dominant markets.

A key driver for Bupa’s robust international sales figures resulted from the market for expatriate health insurance. This activity strengthened in 2010 with increased mobility by expats searching for new opportunities as economic conditions deteriorated in Europe and the US causing high levels of unemployment; Bupa was able to capitalize on this trend, being one the leading insurance providers for expatriate health insurance.

In Asia, Bupa saw profitability levels increase as higher customer numbers helped revenue from international activity reach £3.39 billion (US$5.42 billion) in 2010 – up from £2.83 billion (US$ 4.52 billion) in 2009. This represented a 20 percent increase in revenue generating a business surplus of £208.9 million (US$334.2 million) in 2010.

Bupa’s fledgling operations – Bupa Arabia and Bupa Australia – have generated new customers: now there are over 1 million BUPA policyholders from the Middle Eastern operation and over 3.2 million customers in Australia. Bupa Arabia’s sales have benefited from the health insurance legislation in place in Saudi Arabia, which requires all expatriate residents in the country to hold private health insurance.

There was a notable growth in sales in Hong Kong and Thailand which saw customer numbers increased by 12 percent and 9 percent respectively. Health insurance delivered a good performance in both countries with new sales growth and high retention of existing customers.

MaxBupa, the standalone Indian health insurer, was initiated by Bupa in 2010. It now has a presence in nine cities and has established a network link with over 700 hospitals across India. Bupa is in a strong position in India through their MaxBupa venture, which has already secured a sound reputation with over 27,000 customers in a market set to expand as economic conditions strengthen.

Speaking on Bupa’s 2010 results, Chief Executive, Ray King, said: ‘We achieved strong growth in our insurance businesses in Australia and Asia and increased operational efficiency in our businesses in Europe and North America, where market conditions were more challenging.”

Bupa is expecting business to grow in 2011 particularly in the expanding Asia-Pacific and Latin America regions, where there is an increasing demand for quality health insurance. The momentum within these two emerging regions and Saudi Arabia are expected to drive profits for the international health insurer and create an increasingly diversified customer base.

While growth is expected in emerging markets, Bupa is anticipating challenging conditions to continue in its traditional markets in the UK and the USA with sales likely to be inhibited as economic conditions are impacted by austerity measures being applied nationally. While unemployment numbers remain high in the UK and the USA, both individual and corporate health insurance sales are expected to be frustrated.

As global demands change, Bupa will seek to penetrate new markets and strengthen its foothold in emerging markets where a presence has been recently been established. The health insurer also plans to develop its product range and quality of service in order to promote sales growth.

The UK based health insurer took a major strategic decision in 2007 and sold its private hospital network within the UK in an ambitious step to focus on the core private health insurance and care market. The £1.44 billion (US$2.2 billion) capital generated from the sale of private hospitals was used to strengthen Bupa’s global presence which is now reaping financial benefits.

In the medium term, Bupa is planning to grow by responding to demands from highly populous emerging markets where action has been taken to establish a presence.

Bupa’s global reputation has made it one of the leading multinational health insurers and it is a strong favourite with expatriates seeking health insurance cover. This sector of business has helped Bupa to increase sales during 2010 and it is expected to be a major contributor to trading activities in 2011.

Across the group, Bupa retains a strong market position with a sound financial standing. It is, therefore, well placed to meet the prevailing challenges in 2011 including pressures arising from the spread of chronic diseases, the rise in ageing populations and changing consumer and national government expectations about the services required from companies in the health insurance and care business.

Insurance Company Mentioned:

Bupa

Bupa was established more than 60 years ago in the UK and is now has ten million customers in over 190 countries, and over 52,000 employees around the world. Bupa is a leading international healthcare provider, offering personal and corporate health insurance, workplace health services and health assessments. As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world. Bupa has operations around the world, principally in the UK, Australia, Spain, New Zealand and the US, as well as Hong Kong, Thailand, Saudi Arabia, India, China and across Latin America.

From July 1st 2011, health insurance policy holders in India will be able to change insurance providers, without the fear of losing their benefits from their previous policy.

With the new initiative issued by the IRDA (Insurance Regulatory and Development Authority), industry leaders in India predict an increase in competition among health insurance providers, as policy-holders will be afforded greater freedom in moving their policies among insurers. Health insurance service standards are also expected to rise in return, as insurance companies will increasingly compete on the quality of customer service.

The IRDA issued a media release on 10th February 2011, indicating that insurers should allow for portability of health insurance policies. The central thrust of the IRDA plans for health insurance portability is the ability to transfer credit for pre-existing conditions in regards to waiting periods on cover, provided that there has been no lapse in the policy. The IRDA also seeks to allow portability if the policy lapses due to delay by an insurer.

Prior to the regulatory change, policy holders were often at a disadvantage. If a policy-holder wanted to change to a different health insurer, particularly if they have acquired a chronic illness, they may face obstacles such as long waiting periods or exclusion of cover for pre-existing conditions when taking out the new policy.

Policy-holders should be happy with the recent changes in IRDA laws, which will allow them to carry their policy to another insurer, keeping the benefits of their previous policy. “It is essential to protect policyholders against discontinuity and consequential loss of pre-existing disease cover… The portability will ensure the policyholder is not tied to one insurer for the pre-existing disease cover” said the IRDA in the February 10th media release.

CEO of Apollo Munich Health Insurance, Antony Jacob, explains changes regarding the new law “a customer opting to choose our product (at similar sum insured level) can transfer indemnity based health policy from any insurer with the accumulated benefits”.

The IRDA aims to protect the interests of policy-holders and this is one of their most recent regulations on health insurance companies in India. The IRDA, appointed by the Government of India, are ultimately setting its targets to not only protect the rights of consumers, but to protect the state in the burden of medical treatment placed on the public health system.

Looking ahead, as suggested by leading insurers, what we can expect to see is an increase in competition among insurers. Policy holders in India will find shopping for another insurance provider an easier process.

Increased competition on the market may initiate a drop in health insurance premiums; as insurers provider try to draw in customers. However, Dr BS Powdal, Head of Health Insurance, Bajaj Allianz, explains that this is unlikely to occur. With customers moving to different companies there is usually a particular reason for it, such as poor service, given the benefits under their policy will remain the same. ‘Quality of services’ will therefore be the likely motivator in the near future for customers within India moving to different health insurers.

Dr BS Powdal of Allianz explains, “he is going to pay some extra amount for the added quality of service so it is unlikely that there will be a price wars because of portability but the customer benefits because he gets the benefit of the waiting period which he has already stayed with the previous insurance company”, further adding that premiums are in fact likely to rise “if there is a person who has say suffered a heart attack with the previous insurer’s policy period when he moves to the next insurer that insurer probably will charge a higher premium… prices may go up to some extent for those who have a claim history with the previous insurance company”.

In the meantime, competition is on the increase in India with more and more individuals taking out health insurance policies in the country. The number of policy holders increased to 6.88 million from 4.57 million in the 2008-9 year, according to data issued by Third Party Administrators (TPA) and Insurers in India. With increasing numbers of policy holders, premium collection by health insurers has almost doubled along with the submission of claims.

Key players on the health insurance market in India include Star Health & Allied Insurance, Apollo MUNICH and Max BUPA; with other leaders including National Insurance Company, United India and Oriental Insurance and ICICI Lombard.

Insurance Companies mentioned:

Star Health & Allied Insurance

Star Health and Allied Insurance is a specialist health insurance provider and was the first stand alone health insurer in India. Star Health and Allied Insurance provides health, accident, student, travel, and life insurance products.

Apollo Munich Health Insurance

Apollo Munich Health Insurance Co. Ltd. (previously known as Apollo DKV Insurance Co. Ltd) is a joint venture between the Apollo Hospitals Group and Munich Health. Apollo Munich Health Insurance provides health, personal accident and travel insurance.

Max BUPA

Max Bupa Health Insurance is a 74:26 joint venture between Max India Limited and UK-based Bupa. Bupa is a leading private healthcare provider with more than 10 million customers worldwide and over 60 years experience in the health sector. The Max India Group has expertise in both healthcare and insurance related services including hospitals, clinical research and life insurance.

Bajaj Allianz

Bajaj Allianz is a joint venture between Bajaj Finserv and Allianz SE, one of the world’s largest insurance companies. Bajaj Finserv is engaged in life insurance, general insurance and consumer finance business. Allianz SE has over 119 years of industry experience and is present in over 70 countries around the world.

ICICI Lombard

Founded in 2001, ICICI Lombard is a 74:26 joint venture between ICICI Bank Limited, India’s second largest bank, and Fairfax Financial Holdings Limited, a Canada based financial services company. ICICI Lombard is a general insurance company offering a wide range of insurance policies including, business, liability, motor, travel, rural and health insurance products.

National Insurance Company

Founded in 1906, National Insurance Company Ltd (NIC) is one of the leading public sector insurance companies of India, carrying out non life insurance business. Headquartered in Kolkata, National Insurance has a large market presence in Northern and Eastern India.

United India Insurance

Incorporated in 1938, United India Insurance Company Limited is one of the leading General Insurance Companies in India. With headquarters based in Chennai, India, the company has more than three decades of experience in Non-life Insurance business. It was formed by the merger of 22 companies, consequent to the nationalization of General Insurance.

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