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The year 2012 may not have been the most flourishing of years for some health insurance companies around the globe, but data for the first quarter of 2013 looks promising for many of the world’s largest, most well-established medical insurance providers. Among those releasing encouraging figures, Cigna, AXA, Munich Health and Allianz, some of the biggest players in the industry are all showing healthy signs of growth.

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2013 is looking to be another promising year for insurance giant Cigna, as the company continues to win prestigious awards, bring in new leadership in key regions and expand services to win new clients.

In January, Cigna Global Health Benefits Asia-Pacific received the “Employee Benefits and Services Provider of the Year” award at the annual Asian Expatriate Management and Mobility Award in Hong Kong. These awards are often considered the “Oscars” of the international mobile profession. Cigna’s award demonstrates the company’s overall superiority in the area of employee health insurance.
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Coverage from top insurers,  such as Cigna, can often involve high premiums as benefits are generous and the levels of servicing offered are of the highest quality.  The “Global Health Options” (GHO) issued by Cigna roughly one year ago was aimed at such clients looking for high quality health insurance. Now, Cigna is aiming to provide health insurance that will appeal to clients who may not be able to afford high end plan premiums and have launched their latest product, the GHO “Advance”. The benefits of this plan have been reduced slightly, but the premium is much more appealing while still incorporating the level of service that is normally associated with Cigna.

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Health insurance companies were busy last year in regard to charity donations in recent months. One company in particular hit a record high amount and in 2012, William Russell raised more than USD $15,750 for Woking Hospice in a goal that saw involvement from directors, staff and clients.

This impressive amount is much more than what has been recorded in years previous, even doubling the amount raised in 2011. William Russell was able to reach this amount from various fundraising activities, which included incorporating dress down days, raffles and sweepstakes.
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Cigna is in a strong position to see growth in its international and commercial healthcare coverage, according to BMO Capital, a financial services company that provides clients from businesses and government’s access to a wide variety of services and products. BMO believes that some of the most important parts of the health insurance providers business are also strengthening.

Furthermore, the company’s stock prices are also projected to increase, as analyst Dave Shove increased his 12-month anticipation for the price of the company’s stock from USD $60 to $65.

Earlier this month at its annual investor day presentation, Cigna Corp released their projections for 2013, with adjusted earnings of about USD $5.80 to $6.25 per share. These figures are lower and more conservative than average expectations from other analysts, which set expectations at about USD $6.33 on average, according to FactSet, a multinational financial data and software company.

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Last months’ 2012 Health Insurance Awards held in Glasglow, England, saw many companies recognized for their efforts in the health insurance industry both in the United Kingdom and internationally. Many of the health insurance companies that received awards and honors at the event, which is widely considered as one of the leading industry events in the UK that showcases professionalism and excellence in the medical insurance industry, work with Globalsurance.

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High increases are expected in 2013 across the Cigna Global Expat plus plan recently acquired from Van Breda. Currently undergoing a re-branding under the Cigna name, these latest increases will undoubtedly dissapoint policyholders and leave them questioning their faith in Cigna.

Numerous providers (Bupa International, Aetna Global Benefits, AXA PPP) have released their annual increases and have been performing well under the trend of the past 5 years. Policyholders attached to a Cigna Global Expat plus plan however, can expect to see an increase of 29% on their premium for all renewals in 2013 and it is understood by Globalsurance that increases could reach up to 50% in certain markets (Singapore, China, Hong Kong).

Globalsurance analysts are not considering these increases to be related to medical insurance inflation, but rather adjusting to the pricing in the market. This drastic increase may cause customers to wonder whether these increases would have occurred if Van Breda was not now a part of Cigna and may blame Cigna’s own ‘economic model and costs’ plan as the cause of the increase in premiums.

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US health insurance giant CIGNA Corp. is launching a new collaborative medical care initiative with a New York-based physician group that aims to deliver improved medical access and outcomes at reduced cost for members and will work in a similar manner to the accountable care organizations outlined by the Obama Administration’s health care reform law.

Accountable care organizations, commonly referred to as ACOs, were introduced as part of the Patient Protection and Affordable Care Act in 2010. ACOs function as patient-centered networks of private healthcare providers that all agree to be made accountable for the overall care of their health plan members in exchange for additional compensation if they are able to improve health outcomes and reduce medical expenses.

On Wednesday, CIGNA announced that the Weill Cornell Physician Organization would be their partner in what will become the first accountable care initiative in New York that encompasses both a health plan and a physician organization. The move follows the establishment of a similar collaborative initiative between CIGNA and independent physician group Partners in Care in New Jersey last month. Nationwide, the Bloomfield, Connecticut-based health insurer is now running 11 accountable care programs across 10 states, with patient-centered initiatives now encompassing more than 170,000 Cigna policyholders and 1,800 primary care physicians. The insurer also participates in six multi-payer medical home initiatives across the USA.

According to a press statement released this week by CIGNA, the goal of all these ACOs is to ultimately provide a better service for policyholders through improved access to care and better coordination between medical providers. The statement outlined the company’s “triple aim” of raising member satisfaction, improving health outcomes and reducing the overall cost of medical care. Those who are already covered by Cigna and use Weill Cornell primary physicians will not need to do anything to receive the benefits of the program.

Under this new collaborative program, all nurses employed by Weill Cornell’s 71 primary care doctors will serve an additional role as clinical care coordinators for CIGNA policyholders. These registered nurses will use the patient-specific data provided by the health insurer to identify and reach out to patients discharged from their hospitals who might still be at risk for readmission, overdue for an important health screening, or someone who may have simply missed a prescription refill. These care coordinators will also work to help patients schedule doctor appointments, provide them with appropriate health information, and refer individuals to CIGNA’s disease and lifestyle management programs, the statement said.

Dr. Alan Muney, CIGNA Chief Medical Officer, declared in the statement that these programs were working to transform medical practices nationwide by changing the payment system to reward for quality and outcomes rather than pay for volume. “We believe that initiatives such as this will help transform the way medicine is practiced in the United States from a system that’s focused mainly on treating illness and rewarding physicians for volume to one that’s patient-centred and emphasizes prevention and primary care. We’ve already seen very promising early results in locations where we’ve implemented this type of program, and we believe these initiatives ultimately will lead to a healthier population and lower medical costs,” Muney commented, saying in addition that CIGNA has planned to continue increasing the number of such patient-centered initiatives nationwide throughout 2012

Weill Cornell’s chief contracting officer, Dr. Michael Wolk, was on hand to confirm the sentiment. “Providing value-added, patient-centred health care is our number one priority. We look forward to collaborating with Cigna to deliver the right care at the right time in the right place,” Wolk said, adding that patients that have needed greater help and communication in managing their chronic conditions, including diabetes and heart disease, would be the most likely to see the immediate benefits of the program.

This collaborative accountable care initiative between Cigna and Weill Cornell demonstrates perhaps the steps now necessary for health insurers and providers to encourage greater patient participation with healthcare professionals while keeping costs manageable. Health insurance in the United States has been primarily provided through private sector employers, who bear a large portion of the nation’s healthcare costs. In times of limited economic growth it has thus become increasingly important for those involved in the country’s health system to find a model that can lower costs while maintaining and improving overall employee health and productivity. Added to this has been the continued fervor over the Obama Administration’s upcoming healthcare reforms. Under the Patient Protection and Affordable Care Act (PPACA) nearly all American citizens will have to carry health insurance by 2014 or else face a fine. The US Supreme Court has agreed to rule on whether the United States government can make its citizens engage in such commerce, with their verdict likely to be a critical issue in the run up to the country’s general election in November. The individual mandate, if deemed legal, will put the US insurance industry in a bind, with insurers having less control over whom they cover, which is predicted to drive up their medical expenses and drive down profits. Many insurance companies are therefore deciding look outside the country in order to offset the relatively low premium growth forecast in the USA.

Indeed, Cigna has proven to be one of the more proactive American insurers looking to develop their footprint in overseas markets. As BRIC economies in particular continue to grow, Cigna plans to be at the forefront with an aggressive strategy to take advantage of the increasing demand for insurance and savings solutions in these countries. Industry analysts predict Cigna’s international operations could grow to become a third of the company’s total business within the next three to five years.

Insurance Company Mentioned

Cigna

CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

Cigna & CMC Life Insurance Co., Ltd., Cigna’s Chinese joint venture company, is adding a new product to its portfolio. The new health management product named Cigna & CMC CARE+ will afford policyholders of Cigna & CMC’s high end health insurance plans access to a number of new services and benefits.

As a joint venture between Cigna and China Merchants Group, Cigna & CMC operates as a health, life and accident insurance company in China. It was announced shortly before the end of 2011 that they would be including the new health management product as a value added service for new clients immediately and that existing clients can avail themselves of Cigna & CMC CARE+ benefits upon renewal.

The Cigna & CMC CARE+ health management product is composed of three tools and services. These are the International Employee Assistance Program (IEAP), Expert Second Opinion services and a health and wellbeing assessment.

The Expert Second Opinions section of Cigna & CMC CARE+ can help clients that have received a serious medical diagnosis by providing them with an online diagnosis analysis as well as treatment recommendations. Cigna & CMC have partnered with the Cleveland Clinic to provide clients access to experts who can provide second opinions and medical advice.

The health and wellbeing assessment offers policyholders access to an online survey which will generate a personal report with suggestions for improving their health in areas such as sleeping, nutrition and stress. After completing the assessment policyholders can receive advice and tools that can help them affect a positive change in their state of health.

The International Employee Assistance Program is one of the services that clients can use to begin improving their circumstances, as it provides confidential short-term counseling services and resources at no additional charge that policyholders can use to help resolve personal issues.

The announcement of the Cigna & CMC CARE+ product came shortly after the company had a new General Manager and CEO appointed in mid-November, 2011, named Mr. Fernando Moreira.  The company currently offers 4 types of health insurance plans, titled jade, silver, gold and platinum, and the addition of the new health and wellbeing tools and services in Cigna & CMC CARE+ enable clients to stay healthy and possibly prevent future health issues.

Cigna & CMC’s Senior Vice President of Healthcare Products, Ken Vaughan, said that “Cigna’s mission is to improve the health, well-being and sense of security for the customers we serve. Building the foundation for health and well-being starts with access to the right tools and services.”

Insurance Companies Mentioned

Cigna

CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

Cigna & CMC

Cigna & CMC is a joint venture in China, established in 2003 by Cigna and China Merchants Group. The company offers life, accident and health insurance products in China. It was awarded the Best Foreign Life Insurance Company Award in China in 2008 and 2009.

International medical insurance company Cigna is planning on opening a joint venture in India in the next couple of years, creating a partnership with local Indian Conglomerate TTK Group in forming a standalone Indian medical insurance company.

According to the WHO’s World Health Survey 2011, around 74.4 percent of private healthcare costs are paid out of pocket in India. Given that India’s middle class is growing at around 10 percent a year, alongside the historically low penetration of medical insurance products in the country, many analysts believe that the private health insurance industry in India will see robust growth in the near future with a projected compound annual growth rate for the industry of around 30% for the next 5 years.

Cigna is the latest foreign investor to commence the establishment of a standalone medical insurance joint venture in India and also the first American company to do so. Having already started the approval process with the Insurance Regulatory and Development Authority (IRDA) in India, Cigna and TTK intend to complete their filing in 2012 and obtain their license in 2013.

Cigna’s local partner TTK Group is a family-owned conglomerate that has business interests in a wide variety of business sectors, including both durable and nondurable goods, biomedical devices and a wide range of business and healthcare services. Based in Chennai and Bangalore, TTK operates retail locations that are soon thought to number over 1,500 throughout the country which would be a great leg up for Cigna in marketing their health and wellness insurance products across India.

If Cigna can enter the market with a portfolio of health and wellness insurance products and solutions that are inviting to relevant market segments then they stand a good chance of doing well in the largely untapped Indian health insurance market. This would further add to Cigna’s burgeoning international business.

Cigna is currently limited to 26 percent ownership of the joint venture with TKK in accordance with Indian regulations, however should the limit on the stake foreign firms can own in Indian-based companies be raised, Cigna may avail themselves of the opportunity to own a greater share.

Companies Mentioned

Cigna

CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

TKK Group

Founded in 1928 by T. T. Krishnamachari, TKK is an Indian conglomerate that is largely based out of Chennai and Bangalore. It now runs several businesses in different industries including white goods, pharmaceuticals, biomedical devices, consumer products and assorted business services.

Cigna Inc, a leading global expatriate benefits provider, is expanding its healthcare network in Brazil with the launch of a new CignaLinks program designed to provide simple, locally-compliant healthcare solutions to employers and their globally mobile employees in the populous Latin American country. Through an alliance partnership with Gama Saude, one of Brazil’s largest private medical operators, Cigna will provide customers with comfortable access to more than 20,000 doctors, hospitals and other quality healthcare services, all at competitive prices.

CignaLinks is a specialized health admin program designed by Cigna to simplify the varied and often complex claims and payment procedures that can occur for globally mobile clients, their employees, and their families, when receiving medical treatment in a foreign country. The program works to address local compliance issues unique to the market a policyholder is filing a claim in, which is particularly useful in a country like Brazil where government regulations can affect benefit offerings as well as access to care for expatriates.

By increasing their footprint in Brazil, Cigna reaffirms their commitment to developing its expatriate healthcare business in promising international markets. Tim Blevins, Senior Director for Cigna International Expatriate Benefits, explained in a press briefing today that the expansion of the Philadelphia-based health insurance company’s network in Brazil meant that Cigna’s customers would now have access to more than one million medical specialists and a comprehensive range of hospital and medical facilities worldwide. “The key advantage of using the CignaLinks network is that it provides our globally mobile customers with an easy, administration-friendly process to accessing high quality local health care systems around the world.” Blevins said, adding that “Our CignaLinks customers receive locally-compliant solutions and always have access to our 24/7 International Service Center.”

Cigna’s chief partner in Brazil is Gama Saude, one of the country’s largest hospital networks. Over the next few years, Cigna will look to build upon this relationship, gradually integrating it international expatriate benefit coverage network with a greater proportion of administrative services and medical facilities in Brazil. According to the insurer, policyholders should look to benefit from this extended partnership directly, “by receiving substantial discounts when accessing the local network for care and by reducing their out-of-pocket costs at the time care is delivered.”

Entrance into the Brazilian insurance market has been a priority for Cigna for some time and will enable the company to respond more effectively to the local market as well as internationally. Brazil is by far the largest insurance market in South America, encompassing more than 40 percent of the gross written premiums in the region. Recent economic stability, positive credit trends, and regulatory reforms that have stabilized the currency and promoted domestic savings, are producing sound growth and a demand for coverage across the insurance industry in Brazil. Despite protracted regulatory hurdles, large multinational insurance companies cannot ignore the market’s size and growth potential and will be looking to invest themselves further in the country, as well as other emerging economies, to offset the stagnant business forecasts in their mature North American and Western European home markets. In 2010 the Brazilian insurance industry outpaced the country’s gross domestic products, growing 16.6 percent, with gross written premiums amounting to R$ 99.4 billion (US$ 62.7 billion). The country’s burgeoning export-led economy also presents further avenues for growth in the expatriate medical insurance field. Brazil now hosts many prominent multinational companies that need coverage options for their employees, many of whom are globally mobile. Cigna recognize this business opportunity.

Latin America is far from the only region offering pronounced investment opportunities for multinational insurance companies during these volatile macroeconomic times. Indeed, several insurers, most notably Nordic and ING, have decided to leave the continent to focus on the Asia-Pacific region, which offers even more robust prospects. In the past year Cigna has made similar moves into Singapore, Turkey and most recently India. Cigna has consistently been one of the most proactive American insurers looking to develop its presence in emerging economies, along with Aetna and MetLife. These firms have all been seeking to increase their footprint in global insurance markets in order to offset the relatively low premium growth forecast in the USA, in addition to the continued unrest surrounding the 2010 US Health Reform Law, which could have a far-reaching impact on the industry and comes into effect in 2014. Furthermore, many insurers are looking to diversify and potentially become larger insurance conglomerates to better absorb upcoming changes in the once lucrative US market. This was demonstrated in Cigna’s US$3.8 billion purchase of Medicare carrier HealthSpring Inc in October.

International insurance markets offer enticing post-reform growth opportunities for US based insurers. As BRIC economies further develop, Cigna plans to be at the forefront with an aggressive strategy to take advantage of the projected increasing demand for insurance policies that will provide better coverage than the government provided coverage plans in the region. Industry analysts predict Cigna’s international operations could grow to become a third of the company’s total business within the next three to five years.

Insurance Companies Mentioned

CIGNA

CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

China’s insurance boom is set to continue in the wake of a stellar first half of the year by the nation’s third largest life insurer; China Pacific Insurance (Group) Co (CPIC). China Pacific released a report on Monday which revealed that the insurers total net profits for the first half of 2011 had risen by 44.7 percent to RMB 5.82 billion (US$ 911.04 million), while sales revenues grew by 14.2 percent to RMB 86.88 billion (US$ 13.6 billion).

Despite the recent gains made by China Pacific, the company’s shares on the Hong Kong Stock Exchange fell by 1.9 percent on Monday, to HK$ 28.15 (US$ 3.61) per share.

China Pacific Insurance, a Shanghai based insurance provider, realized the highest first half profits of all three major Chinese based insurance providers, including China Ping An and China Life, in 2011. The biggest gains for China Pacific were made in the life insurance and property insurance markets, with total life insurance premiums for the period in question yielding RMB 2.79 billion (US$ 437 million) in net profits, a 28.5 percent year-on-year gain.

The company’s property insurance offerings yielded net profits in the region of RMB 2.34 billion (US$ 366 million), a 54 percent gain over the previous year.

China Pacific Insurance’s recent results mirrors the success achieved by two other major Chinese insurance industry players; China Life and China Ping An. The high levels of growth seen by all three of these companies since the start of 2011 fully reveals a maturing market, and sets the stage for even more profits in the near term future.

However, the business potential of the Chinese insurance market has attracted foreign notice, and increased activity by foreign insurers has become increasingly evident in the past few months. Cigna, a well regarded American Health Insurance company, recently revealed plans to launch a new, targeted China health insurance plan in conjunction with its local partner, CMC.

The Cigna CMC health insurance product, named The Jade Plan, is a product specifically designed for the high end mainland market.

While competition may be growing inside China’s insurance market, China Pacific is well positioned to experience even higher levels of growth moving forwards. At the end of June 2011, CPIC had RMB 490.51 billion (US$ 76.8 billion) in assets under management, up by 12.6 percent from 2010.

Insurance Companies Mentioned

China Pacific Insurance Group

China Pacific Insurance (Group) Co., Ltd. (CPIC) is a insurance company providing, through its subsidiaries, a range of life and property and insurance services and pension products to individual and corporate customers throughout the country. CPIC was founded on May 13, 1991, and is headquartered in Shanghai. The company was listed in Shanghai Stock Exchange on Dec. 25, 2007, with the stock code of 601601 and the stock name of “China Pacific”. The Company was listed in the Stock Exchange of Hong Kong Limited on Dec. 23, 2009, with the stock code “02601” and the stock name of “CPIC”.

China Ping An

Ping An Insurance (Group) Company of China, Ltd. (Ping An) is engaged in providing a range of financial products and services. The Company focuses on three businesses: insurance, banking and investment. The Company operates in five business segments: life insurance business, property and casualty insurance business, banking business, securities business, corporate and other businesses. The Company’s subsidiaries include Ping An Life Insurance Company of China, Ltd. (Ping An Life), Ping An Property & Casualty Insurance Company of China, Ltd. (Ping An Property & Casualty), China Ping An Trust & Investment Co., Ltd. (Ping An Trust), Ping An Securities Company, Ltd. (Ping An Securities), Ping An Bank Co., Ltd. (Ping An Bank), Ping An Annuity Insurance Company of China, Ltd. (Ping An Annuity) and Ping An Health Insurance Company of China, Ltd. (Ping An Health), among others.

CIGNA

CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries are committed to providing medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, for 46 million people throughout the United States and in other communities around the world.

It has emerged within international private medical insurance industry that A+ International Insurance may not offer policyholders the option of renewing their medical insurance policies in the future.

A+ International Insurance’s decision to not offer clients a renewal on their IPMI policies may be due to Cigna’s purchase of Van Breda International; Van Breda International was integral to A+ International’s plan offerings and policy administration.

Cigna, a leading US based international insurance provider, purchased Vanbreda International in August 2010 in order to access the Belgian insurer’s international reach.

A+ International’s partnership with Vanbreda International is through Justitia NV. Justitia, an independent insurance company within the Vanbreda Group of companies, is responsible for underwriting A+ International’s international health insurance plans.

Justitia NV generated premium collections of EUR 18.5 million (US$ 26.3 million) in 2008.

While A+ is a relatively new entry to the global health insurance market, the company does have a significant number of policyholders worldwide; the potential denial of renewal terms to existing customers may leave a substantial number of consumers without adequate medical insurance coverage.

A+ policyholders are advised to contact the company, or their intermediary, in order to understand their health insurance options in the event that they are not offered a renewal of their current policy.

At present there has been no official confirmation from A+ International Insurance regarding future business, but policyholders who have contacted the company have been informed that there may not be renewal terms on their policies.

Cigna Inc, the leading international group health insurer for expatriates and other individuals traveling abroad, was today granted a license to operate in the Singapore health insurance market. The move reaffirms the company’s commitment to developing its international business for providing supplemental coverage products. The expansion of the Philadelphia-based health insurance company’s operations into Singapore means the US insurer’s global coverage network of around 900,000 hospitals, physicians and other healthcare professionals, is now working out of 28 different countries and jurisdictions.

As a fully licensed Singapore insurer, Cigna will bring their global healthcare expertise to the country. Locally-based sales and client management operations will allow the company to work more closely with Singapore businesses to develop appropriate health coverage solutions for both their domestic and international employees. Through an arrangement with Parkway Shenton, one of Singapore’s largest private medical operators, Cigna will provide customers with comfortable access to quality healthcare services at competitive prices.

Entrance into the Singaporean insurance market was a priority for Cigna. The Managing Director for the Asia Pacific Region, Ken Vaughn announced in a press statement that the new Singapore-based offices would both enable the company to respond more effectively to the local market as well as internationally: “Our expansion into Singapore demonstrates our commitment to our clients and customers in the local market and their evolving needs in the international market,” he said. The country hosts several thousand multinational companies who need coverage options for their employees, many of whom are globally mobile. The substantial local middle class population, who can well afford supplemental insurance policies, and the large expatriate workforce (estimated to be 110,000) further present avenues for growth. Mr. Vaughn further added: “Singapore is an important market for us because of its choice location within Asia and the fact that many of our clients and customers are located here.”

Cigna’s Singapore office is also of strategic international importance due to its location in Southeast Asia. The new operations are expected to improve communication and decision-making with the company’s other branches in China and Hong Kong and strengthen Cigna’s overall capacity to handle its clientele on a global scale. The company established a presence in China in 2003 through a joint venture with China Merchants Group. Today Cigna is estimated to have around 6 million clients in the Asia Pacific Region, with South Korea currently home to the most policyholders. International business rose 33 percent to US$ 243 million and totaled 19 percent of Cigna’s adjusted earnings for 2010. Industry analysts predict Cigna’s international operations could grow to become a third of the company’s total business within the next three to five years.

Cigna has consistently been one of the most proactive American insurers looking to develop its presence in emerging Asian economies, with only Aetna Inc. also moving into China in the past few years. Both firms have been looking to increase their penetration in global insurance markets in order to offset the low growth forecast for the USA, in addition to the general unrest surrounding the 2010 US Health Reform Law, which will have a far-reaching impact on the industry and comes into effect in 2014. Many insurance companies are in fact looking to diversify and potentially become larger conglomerates to better absorb upcoming changes in the once lucrative US market.

International markets offer an enticing post-reform growth opportunity for US based insurers. As the Asian healthcare market develops, Cigna plans to be at the forefront with an aggressive strategy to take advantage of the projected increasing demand for insurance policies that will provide better coverage than the government provided coverage plans in the region. India and Turkey have been identified by Cigna CEO David Cordani at a presentation in March to investors in New York as the next priority target markets to establish company partnerships in.

In an interview, Cigna’s President of Cigna Expatriate Benefits Andrew Kielty, confirmed that work was underway for Cigna to establish an operation in India: “We are making good progress in India, but finding a long-term joint venture partner is a very delicate process and we can’t predict at this point when that will happen.”

Cigna is also interested in further growing its international business coverage options, selling expatriate healthcare products to multinational companies that are increasingly globalizing their operations. Cigna recently aquired Belgium’s Vanbreda International in 2010 to give the firm increased access to the expatriate health insurance market in Europe and Asia. In January 2011, Cigna announced its intentions to increase expatriate benefit plans through its African operations.

Cigna yesterday announced a new individual international healthcare plan, titled Cigna Global Health Options. The policy is designed for individuals who are frequent travelers and want access to a high standard of medical care wherever they are around the world. The basic policy, which is expected to cost around US$ 4,500 a year, covers hospitalization, maternity care, surgical procedures, cancer treatment and emergency services. Customers can also customize their package through purchasing any of the four additional service options including: international medical insurance plus (outpatient), international vision and dental, international health and well-being, and international emergency evacuation. Cigna Global Health Options’ clients will have access to a 24/7 customer service hotline to authorize treatment, guaranteed payment to hospitals, and handle all other customer inquiries related to the healthcare plan including claims and medical support.

Mr. Kielty explained the significance behind Cigna’s decision to launch this new product: “We are pursuing a broader market of wealthy individuals who want to seek out the best possible health care,” he added “The market for selling individual plans to expatriates is in excess of $1 billion. When you add in the broader high net-worth market, it’s hard to say how high that goes.”

This innovative plan marks Cigna’s entrance first foray into the individual consumer market, having long established itself in the expatriate insurance industry through its sale of group policies to employers. Cigna Global Health Options will prove an important benchmark in measuring the company’s growth into an even more comprehensive health insurance provider. Cigna Global Health Options is currently being marketed exclusively online but plans are underway for a more robust promotion strategy throughout 150 countries, including Cigna’s new venture in Singapore.

Insurance Companies Mentioned

CIGNA

CIGNA Health Insurance is a global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

The international health insurer CIGNA has announced plans to expand its expatriate benefits network in Africa. This will augment the US-based insurer’s African resource base to a total of 47,500 doctors and healthcare workers and increase its range of access to hospitals on the African continent. The expansion of CIGNA’s network in Africa means that the US insurer’s worldwide network now nears 900,000 healthcare professionals operating in 27 countries.

CIGNA is one the global leaders in the provision of medical services for expatriate workers and will add 500 doctors and hospitals to its CIGNALinks network in Nigeria and Egypt. The increase in healthcare professionals and facilities in the two Africa countries will be completed through a new alliance with the Medical Services Organization based in South Africa.

The expansion in the range of CIGNA’s expatriate benefits now means the health insurer is able to provide more healthcare services to its policyholders and maintain it global presence as one of the leading international health insurance companies.

CIGNA’s senior director for Global Health Solutions, Timothy Blevins, said “CIGNALinks in Africa is designed to offer customers substantial discounts when accessing the local network for care and to reduce out-of-pocket costs at the time that care is delivered.”

The key advantage of using the CIGNALinks network is that it provides members with an easy process for making claims and healthcare payments as the scheme is designed to be administration friendly, operating through links with local healthcare organizations. CIGNA clients have 24/7 access to CIGNA customer services organization worldwide.

CIGNA has over 700,000 expatriate customers across more than 200 countries. The recent increase in the CIGNALink’s network in Africa means that access is now available to approximately 900,000 medical specialists and a comprehensive range of hospital and healthcare facilities worldwide, cementing the international health insurer’s status on the global stage.

CIGNA’s expansion of expatriate benefit cover will now include two of Africa’s most populous countries, with strong expatriate communities. Nigeria is a country which attracts expatriates to work in the large scale oil and gas industries in the country, while Egypt is a highly developed African nation with a wide range of industrial activity.

CIGNA, like most international insurers, has been looking to grow its position in global insurance markets in order to offset its relatively static position in the USA. The recent increase in the CIGNALinks network will enable the insurer to maintain a competitive edge as an expatriate health provider.

CIGNA provides insurance plans to cover medical, dental, vision, accident, pharmacy, life and disabilities, for international and expatriate clients. Further growth in CIGNA’s network coverage is known to include expansion into emerging Asia-Pacific markets with India and Turkey being identified as specific targets. The Philadelphia-based health insurance company acquired Belgium’s Vanbreda International in 2010 to give increased access to the expatriate health insurance market.

CIGNA is preparing to announce its financial results for 2010 in February 2011; the insurer reported third quarter 2010 net income of US$307 million – down from US$329 million – in the same period in 2009.

Insurance Company Mentioned:

CIGNA

A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioural health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

The US Health Reform law mandates that by 2014, US citizens must have health insurance coverage or otherwise pay a hefty US$695 annual fine. It is estimated that the Health Reform will reduce the number of the uninsured from 19% of US citizens in 2010 to 8% by 2016.

The Health Reform law imposes new regulations and fees on insurers, and although it expands coverage to the millions of uninsured Americans, it also puts considerable pressure on insurance company profits. In the meantime US insurers are looking at new opportunities among other consumer markets in order to secure their continued growth.

A large number of US citizens are currently uninsured. Under the Health Reform law, health insurance coverage will be expanded to the millions of uninsured Americans, aiming for better access to healthcare for all citizens across the country. A recent study, conducted by the Centers for Disease Control and Prevention (CDC) indicated that during the first quarter of 2010, around 59.1 million people in the US had no health insurance, for at least part of the preceding 12 months. This compares to 56.4 million uninsured in 2008, says the CDC. The study also found that the majority of uninsured were adults, aged between 18 and 64.

Health insurance in the US is usually provided by employers or through an employed family member’s dependent coverage. However, employment is no guarantee of coverage. Due to financial pressures fueled by the recession, employers are having to cut back in costs including employee’s insurance coverage. Between January and March 2009, over 1 million employees lost their health insurance coverage. A study performed by the National Opinion Research Center (NORC) at the University of Chicago, found the proportion of workers in New York with employer-sponsered health insurance had fallen to 58%, compared to 69% in 2001. Further to this, unemployment has risen from 8.5 percent in March last year to nearly 10 percent this year. With the increasing unemployment rate in the US, the numbers of the insured has in turn dropped.

As well as increasing the number of insured individuals, the Health Reform will also affect the way US insurers do business. With new reform laws, insurance companies are barred from refusing coverage to individuals with pre-existing conditions. This law currently applies to children in the US and will come in to effect for adults in 2014. This means that US insurers will have less freedom over which market of individuals they insure, no longer being able to cherry pick their members. This will result in a larger proportion of high risk policy holders, among their population of members. Further to this, insurers are no longer allowed lifetime limits on coverage, taking away cost-cutting measures that insurers are likely to use on policy holders with chronic conditions. Needless to say, overall insurers will be spending more, post Health Reform.

With increasing numbers of Americans taking out health insurance policies, insurance companies will be anticipating a large number of new customers. This surge of new customers will also mean a rise in spending on claims, medications and other reimbursements associated under policy schemes. Newly-insured individuals will also be seeking primary care more than ever, given the cost of healthcare was a major barrier prior to the reform. We can therefore expect US insurers to use this increase to rationalise higher premiums, however this increase will not recover the profit loss that is likely to occur.

In order to enable US individuals more affordable access to the highly expensive medications in the US, the Health Reform also enforces insurers to cover 50 percent of prescription costs. The cost of prescription drugs in the US are by far the highest among developed nations. Given the pharmaceutical industry is the most profitable business in the country, with high consumers of expensive prescription drugs, this Health Reform law will also further impact insurers.

The new laws under the Health Reform undoubtedly put US insurers in an unfavorable situation, having less control over who they insure and putting a considerable dent in their profits. Insurance companies are therefore having to look elsewhere to recover the loss of profit that is expected in years to come.

A small market has open for insurance companies to target retirees who are no longer insured by the their employer, but are also not old enough to be eligible for the Medicare system that covers seniors over the age of 65. However, is this a profitable market for insurers – considering the age-related health expenses that are likely to be incurred?

What we can expect to see is an international expansion of US insurers, moving their market to overseas consumers in order to continue and secure growth and profit. A larger, more profitable market exists among overseas consumers who can afford private health insurance, beyond what their Government’s healthcare system can provide. While Aetna and Cigna Corp primarily offer health insurance through large employers in the US, they are among the US leading insurers who view international markets as an appealing post-reform option.

Cigna’s CEO David Cordani, is currently investing in products sold to individuals that supplement Government healthcare. Cordani recently said the company is seeing new opportunities for international growth as the company establishes potential markets in India and Turkey. Cordani anticipates this international growth will extend into Asia as well as Europe, the Middle East, and Latin America. As well as Cigna, Aetna is also investing in products such as these.

Mark Bertolini, new CEO of Aetna said recently, “We can’t stay where we are. We have to move. We have to change. Aetna views international markets as an enticing post-reform option. Health insurers sell expatriate coverage to multinational companies that are increasingly globalizing. A rising middle class of overseas consumers who can afford insurance products beyond what their governments offer provides another avenue for international growth”.

It will take years until we know exactly what affect the Health Reform will have on the US healthcare system and insurance market as it is today. US citizens will be taking out more health insurance coverage and there will be a large influx of patients seeking primary care, given that healthcare will be more accessable. While what we can expect among US insurers, is a move towards a more profitable, healthier market of international consumers.

Insurance Companies Mentioned:

AETNA:

Aetna is a leading global diversified health care benefits company head-quartered in the U.S., serving approximately 35.8 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioural health, group life and disability plans, and medical management capabilities and health care management services for Medicaid plans. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labour groups and expatriates.

CIGNA:

A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioural health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

Despite Thailand’s recently social turmoil, political uncertainty and world financial crises, the Thai domestic insurance market is targeting an overall increase of 6% in insurance premiums by 2014.

The growth in the general Thai insurance market is driven by a combination of factors derived from the improving prosperity of the population, which translates into increased demand for protection of property, auto and savings, together with health and life cover.

Read the rest of the Growth Predicted for the Thai Insurance Market article

CIGNA Corp., the Philadelphia-based healthcare service provider, has announced at the Morgan Stanley Global Healthcare Conference in New York that it expects to meet its forecast consolidated adjusted income from operations as per estimates for the whole of 2010, currently set at between US$1.13 billion (EUR 869.2 million) to US$1.21 billion (EUR 931 million).

Included in the forecast by CIGNA for the full year 2010 are the results of Guaranteed Minimum Death Benefits, which are expected to reach a break-even level. However, CIGNA sounded a note of caution on reaching their targets, depending upon economic volatility and persistent low levels of interest rates, since these unpredictable factors would call for an increase in reserves, producing losses in the second half of 2010 to cover these benefits.

Under the category of special items for 2010, CIGNA may include items such as potential adjustments related to cost reduction, litigation and taxes. Other than these special items, at present CIGNA doesn’t have additional information available to reasonably identify or estimate any more than these items for the full year 2010.

In its 8th annual chapter, the Morgan Stanley Global Healthcare Conference aims to contribute towards the visionary goals set back in 1935, defining the company as the pre-eminent financial advisor to companies, governments and investors from around the world.

Insurance Company mentioned:

CIGNA

A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioural health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

Philadelphia-based health insurance company CIGNA has announced the recent acquisition of privately owned Vanbreda International, a leading international health insurance company headquartered in Belgium.  The deal between the two companies gives CIGNA unprecedented access to the larger international expatriate health insurance market; the two companies have an estimated 700,000 policyholders worldwide.

CIGNA President, William L Atwell, was positive about the deal between the two insurers, stating that “the acquisition demonstrates CIGNA’s growth strategy to go deep into existing segments, to go global – seeking worldwide opportunities to diversify our earnings stream, build on strengths and serve customer needs – and to go individual, as Vanbreda International has a growing portfolio of international individual business.”

Despite the acquisition of Vanbreda, the company will still continue to operate as an independent business under the leadership of current CEO Rudi Bertels, who said “as we join forces with CIGNA, we look forward to building on our proud legacy of service and adding enhanced capabilities for our customers, such as CIGNA’s leading suite of health and wellness offerings.”

Vanbreda has been a target for CIGNA for some time now as “there is little overlap between our current businesses and capabilities, bringing mutual opportunity to both,” according to Atwell, who also identified the strong “cultural fit” between the two companies as a key motivator for the acquisition.

While CIGNA is a dominant presence in the American health insurance market, providing integrated health services, Vanbreda has a much larger operation in both Europe and Asia. As such, the deal between the two companies is a key component in CIGNA’s global strategy, and a vital part of their plans for worldwide growth.

The last 12 months has seen increased movement in the international insurance market, following in the wake of the 2008-2009 global financial crisis. In a global trend, many insurance providers are looking to expand their global presence, with Europe and the developing markets in Asia being cited as the biggest opportunities for success. The acquisition of Vanbreda by CIGNA is the latest development of this movement.

UBS Bank was the financial advisor to CIGNA for the deal, however financial details of the acquisition have not been disclosed.

Insurance Companies Mentioned

CIGNA

A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

Vanbreda

With over 50 years of experience in the international medical insurance market, Vanbreda covers a myriad of policyholders worldwide. Headquartered in Belgium, Vanbreda believes in product innovation and superior service to customers.

Mr Sadler will oversee the operations from Hong Kong, as CIGNA aim to further expand the business globally. As from the 19^th of July, 2010, the former HSBC MD will take the reins of CIGNA in Hong Kong, to lead the Health, Life & Accident (HL&A) push for growth in the international market.

Insurance Companies mentioned:

 

CIGNA- A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

 

HSBC- Is one of the largest banks and financial services organizations in the world. It has a global presence that consists of 9,500 offices across 86 countries and territories in Europe, the Americas, the Asian- Pacific region, the Middle East and Africa. HSBC Insurance (Asia-Pacific) Holdings Limited is a wholly owned subsidiary of The Hong Kong and Shanghai Banking Corporation Limited, the founder member of HSBC Holdings plc, the London-based holding company of the HSBC Group. Three insurance underwriters collectively form HSBC Insurance (Asia-Pacific) Holdings Limited: HSBC Insurance (Asia) Limited, HSBC Life (International) Limited and HSBC Insurance (Singapore) Pte Limited.

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