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Austerity Efforts in Europe Putting Pressure on Health Services

As financial concerns continue to affect the Eurozone, many countries have been forced to make efforts in reducing state spending which is leading to the cutting back of benefits, such as national healthcare programs.

In the EU, countries ranging from the more powerful such as the UK and Germany, to countries such as Slovakia and Hungary are facing falling or stagnating budgets, in many cases as a result of the European debt crisis. Various countries have been impacted differently, with some managing to put of drastic changes to services with timely reforms and others seeing rising wait times for procedures.

Slovakia and other ex-communist eastern European countries have been hard hit, with the pressure to cut costs keeping salaries low for doctors and medical professionals in the countries. This has resulted in brain drain over the long term, but more recently has lead to around 1,600 medical personnel resigning in Slovakia. While some doctors have agreed to return to work after the government offered a 40 percent raise in salary, many have not, and other doctors in nearby countries with similar problems may follow suit. Many Slovakians have been left without treatment, prompting the Czech Republic to send 30 army doctors in to assist, while Austrian and Polish hospitals are preparing to accept Slovakian patients.

Countries like Germany or the UK face different problems to those faced in Slovakia, however budget cuts to established healthcare systems in these countries, coupled with shifting demographics are stretching these national healthcare systems thin. In 2010, Germany reformed its health insurance system, increasing the contributions for workers and their employers while also adding controls for the price of pharmaceuticals. This has worked to some degree, reducing the programs budget shortfalls, but as the population continues to age and the workforce shrinks as is being seen in many developed countries, the amount of money spent on drugs and outpatient care will continue to grow in the future.

The UK National Health Service (NHS) is seeing cracks in the system as the result of budget reductions alongside growing health outlays. Lines for surgeries are increasing in length in the UK, while a growing number of NHS hospitals are in dire enough financial condition that they could be required to merge with other hospitals which may result in loss of services or reduced access to quality healthcare in some localities.

Britain has previously experienced a rising uptake of private medical insurance plans when the NHS was not highly considered, due to people wanting to ensure they have access to quality medical care. However with unemployment in the UK reaching a 17 year high at 8.3 percent, people may have to consider whether paying for healthcare through private health insurance or out of pocket spending is more cost effective for them.

Citizens or even resident expatriates in countries with developed healthcare systems and high quality medical facilities may find it easier to pay for treatment as needed, in some cases. Although there are many places and people in the world for which paying for private care out-of-pocket may work, in many instances it simply would not be appropriate.

Paying your own way for hospitals treatments requires firstly that you have enough money saved up to pay for any treatments, and secondly that you are knowledgeable about the hospital and its capability in the required treatment. This is not always possibly, especially for expatriates or business people who travel frequently to numerous countries. Paying your own way also may not be a feasible option for expats located in places like Africa or elsewhere where the hospitals or medical facilities may not be of a high quality, necessitating a medical evacuation. This can be prohibitively expensive.

Thankfully many international insurance providers have been paying attention to developing trends and many have been reevaluating their products and services in response. Insurance companies such as Medicare International and Allianz Worldwide Care are developing cost effective international health insurance payment plans and services, offering customers plans with high benefits and variable premium structures that can appeal to a wide range of international customers on a broad spectrum of budgets.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

Cost of Care Rising as Insurers Trying to Provide Value for Money

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.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

Maldives Enlists Allied Insurance for Universal Health Insurance

The Maldivian government will move forward on plans to engage in a public private partnership with Allied Insurance to provide universal health insurance in the island nation.

The government had previously invited insurance companies to draw up plans for providing universal health insurance for the island and submit them to be considered for the partner position. The Maldivian Finance Ministry made the announcement that it was looking for private sector insurers to partner with in late October, prompting Sri Lanka Insurance, Amana Takaful and Allied Insurance to apply.

More recently, the Finance Ministry has announced that it will be partnering with Allied Insurance to provide universal health insurance to the populace, as it was the only company to finish the letter of expression.

The proposed system for the universal health insurance program is designed to be split 40/60, with the government holding 40 percent ownership in the scheme and the private insurance company, in this case Allied Insurance, holding the remaining 60 percent. The system is supposed to provide a wide array of benefits, including emergency treatments, both inpatient and outpatient treatment, prescribed medicines, therapeutic treatments and emergency evacuations within the Maldives. Also to be included will be overseas cover for any treatments that are not available locally.

In fulfilling its roll as the private sector partner, Allied Insurance will be handling billing from healthcare providers, processing claims and raising public awareness. The Maldivian government will pay the premium. The ministry’s Director General Saami Ageel said that they were still negotiating the costs of the insurance plan with Allied.

There is still much debate surrounding the implementation of the universal health insurance plan, and many things may change before the scheme gets underway. MPs are debating the 100 or so amendments that have been proposed, many of which could have a fundamental impact on how the scheme operates.

As the bill currently stands, workers are required to contribute 3.5 percent of their salaries towards the universal health insurance scheme, however, some MPs have already called for the scheme to be compulsory for both locals and expatriates in the Maldives. Other MPs have submitted amendments that would alter the amount of money contributed by the worker and others that would require the employer to contribute as well. Another proposed amendment would see the government pay all costs to cover the entire country under the scheme and do so through money raised by a tax on tobacco products.

There are reports that the universal health insurance scheme is supposed to begin being implemented in January of 2012, however this may depend largely on the content and number of amendments that have been proposed to the universal health insurance bill as more material changes to the proposed system may delay the start date.

Company Mentioned

Allied Insurance Company

The Allied Insurance Company was founded as a joint-venture between the Maldives’ State Trading Organization and the Commercial Union Assurance Company of the UK in 1985. In 1987 the STO bought back all shares from Commercial union Assurance and Allied Insurance now offers a wide range of general insurance products and life insurance in the Maldives.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

Aviva Setting Up Locally Compliant UAE International Health Insurance

UK-based Aviva is moving to build a network in the United Arab Emirates to provide international health insurance products to expatriates situated on the Arabian Peninsula.

Many countries in the Gulf Cooperation Council (GCC) are facing rising costs of healthcare, often due to a rising number of instances of lifestyle related diseases such as diabetes and heart disease. Abu-Dhabi alone spends approximately AED1 billion (US$272 million) every year on healthcare costs associated with treating young diabetics at risk of suffering heart disease in the future.

Abu Dhabi is not alone in this, with GCC compatriot Saudi Arabia having similar problems. The rise of sedentary lifestyles in the region has pushed the levels of obesity up alongside diabetes and related diseases. As many countries in the GCC pay for a large proportion of healthcare in their countries, this rising tide of costly chronic and lifestyle-related health problems is becoming an increasingly large problem.

The GCC healthcare market is expected to grow by approximately 11 percent a year, from an estimated AED94 billion (US$25.6 billion) in 2010 to AED161 billion (US$43.9 billion) in 2015. Given that much of this expenditure on healthcare is paid for by governments, many in the region are looking at health measures to ameliorate the trend lifestyle diseases, as well as possible health insurance mandates.

Abu Dhabi has led the way in this regard, initially requiring mandatory health insurance policies originally for expatriates to get a visa, and later expanding that program to the point where mandatory health insurance is now a requirement for most citizens and residents in the country. While other countries in the region may be debating similar requirements, some health insurance companies are working proactively to provide products that offer customers quality products while fulfilling any governmental health insurance requirements.

International health insurance company Aviva has recently been working with Abu Dhabi-based Emirates Insurance Company to build up a UAE health insurance network. Their efforts have paid off, resulting in the creation of Emirates’ International Solutions product line, a group of 4 benefit plans designed especially for the UAE region which will be available after March 1^st, 2012.

In being designed for the local region, international health insurance products that are to be available from Aviva will comply with local regulation. This means that any expats who live in Abu Dhabi will be able to take out one of the Emirates’ International Solutions products and have it satisfy the visa requirement for compulsory local insurance, allowing them to simply have one plan to cover them in Abu Dhabi and internationally.

In commenting on the recent news, the International Business Lead for Aviva, UK Health, Teresa Rogers noted that “Offering health provision in the UAE is complex due to different legislative requirements across each of the Emirates. We’ve worked with a specialist international law firm to help us develop bespoke solutions for our customers based in the UAE and we believe that our four products will enable us to respond to changes in legislation and customer needs both now and in the future.”

Company Mentioned

Aviva

Europe’s fourth largest insurance company, with more than 300 years of experience in the global insurance industry, Aviva is committed to the safety and satisfaction of its customers. They sell a broad range of insurance products including motor and property insurance, protection and health insurance, business insurance, life insurance and pensions.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

Is the Latin America Health Insurance Market in Good Shape?

In recent weeks there has been a wave of news from within the international Health insurance industry revealing that Latin America is causing a host of issues for Health Insurance companies.

The leading causes of concern are primarily fraudulent claims being submitted under plans, and massive overcharging by healthcare providers for individuals seeking treatment who are in possession of medical insurance coverage. Both these issues are leading to increased health insurance loss ratios for most companies providing policies to the region, and is placing the continued viability of international health insurance for LatAm in doubt.

This is especially concerning considering the fact that Latin America has weathered the global economic downturn in a fairly robust manner. Brazil, for instance, as a key market for many international insurance companies and a major emerging BRIC economy should present high growth opportunities for insurers.

Despite the perceived opportunities in the Latin American health insurance market insurers are increasingly wary of the region and are slowly beginning to pull out of these markets. One such insurance company planning to leave LatAm is Nordic, the health insurance brand of Europæiske Rejseforsikring A/S; Nordic has revealed that it plans to cease the sale of NHC Americas Health Insurance products.

The company is also moving towards a complete withdrawal from Latin America, and will no longer sell NHC products through Agents or Brokers located in the region.

The move has surprised many industry insiders as it has been known that Latin America was one of Nordic’s biggest markets, and the company was well placed to capitalize on the expansive economic growth of the region over the near term future.

However, Nordic sources have revealed that this withdrawal from the LatAm health insurance market was instigated after an extensive internal review, and is being conducted in order for the company to consolidate its positions in other markets, with Asia being a key focus.

Unlike the recent announcement regarding the complete shutdown of Aviva Global LifeCare Health Insurance products, Nordic has stated that policyholders currently enrolled on an NHC Americas health insurance plan will still be able to renew their policies going forward, and that the plan will be serviced in accordance with existing policy terms.

This means that in contrast to Aviva, Nordic will not completely disable its NHC Americas business, but rather stop the sale of any NHC Americas products to new customers. As such, existing NHC Americas policyholders will be able to receive continuing coverage for any medical conditions they may have developed while on their health insurance plan.

The two companies, Aviva and Nordic, could not have handled the “shut down” of their respective plans in a more contrasting manner. Nordic, unlike Aviva, has shown its commitment to policyholders and has displayed its intent to provide high quality on-going services to members who may have developed serious medical conditions while enrolled on their health insurance plan. Aviva, on the other hand, has shown a complete disregard for the impact of its actions on its clients.

While the Aviva Global LifeCare plans may have been loss making for the company, the position they have placed themselves in by simply ceasing to operate these products could do major damage to the perception of “safeness” which IPMI policies offer on a global level. Facing a similar position, Nordic has elected to stand by its existing customers who may have otherwise faced a difficult proposition in obtaining continuing coverage for this region.

Nordic will not force policyholders off plans which are already in place. This key distinction over the manner in which Aviva is treating existing members is a major insight into the duality displayed by many major Global health insurance providers in the modern age. For the international insurance industry to grow, consumers must have trust in the company they are working with, in that the protection they are purchasing is often intended to provide their medical coverage for the rest of their life. While Aviva may have had a negative impact on the perceived trust levels clients have towards their insurer, Nordic has proven that at least some international insurance companies do care about the people they are protecting, and that these insurers are committed to protecting customers over the long haul.

At present it is still unclear why NHC has made this startling decision. Market Analysts suspect that one of the major contributing factors is due to the company’s Claims Ratio in the LatAm region; future claims development in Latin America for NHC was viewed by insiders as potentially unsustainable.

While the news will undoubtedly come as a blow for individuals in Latin American countries due to the high quality and coverage levels associated with the NHC Americas policy, the fact the Nordic remains committed to continuing service of existing customers will be welcomed by many.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

Aetna Enters India

India’s emergent healthcare industry, which features an abundance of specialist medical facilities, an extensive network of healthcare providers and increasing demand for services, is fast becoming an attractive investment opportunity for many multinational companies. On Monday, the international arm of American health insurance powerhouse Aetna became the latest firm to enter the market through the complete acquisition of a 100 percent stake in Indian Health Organization Pvt Ltd (IHO).

The move marks Aetna International’s first foray into India and will provide the US-based health benefits company with a solid customer base of 80,000 enlisted IHO members upon which to further develop its platform in the country. Aetna will also be given access to IHO’s robust network of healthcare providers as well as the preventive care and wellness programs specially tailored to the Indian market. While the financial details of the transaction have not yet been disclosed, Aetna has intimated that they plan to retain the management and all employees at IHO. The Indian company will maintain its existing leadership structure and continue to operate as a separate business within Aetna International, reporting out to the Southeast Asia region office.

IHO is just a three-year old business, started up by two Delhi-based entrepreneurs Visham Sikand and Sunando Sen to provide medical and dental care to participating policyholders at a discount through an accredited healthcare provider network encompassing over 2,500 doctors, 500 dentists, 800 pharmacies and 300 clinics is 18 different cities across India. The company supplies a health card for an annual fee which enables clients to access diagnostic tests and health consultations at discounted rates. The annual charges for an IHO health card range from INR 1,545 (US$35) for individuals to INR 2,648 (US$60) for a one-year family plan and Rs.3,971 (US$90) for a two-year membership. The company has also unveiled a priority plan, which offer higher levels of discount for INR 3,530 (US$80) annually for single membership and Rs.4,853 (US$108) for couples.

Commenting on the acquisition of IHO, Aetna’s Managing Director for Southeast Asia, Derek Goldberg explained that their interest in the Indian healthcare marketplace was well founded. “India’s growing health care market presents tremendous opportunity. The out-of-pocket medical spend in India is more than $30 billion annually, which is more than 60% of the total health care expenditure in the country. The service offered by IHO targets that direct consumer spending on health care by providing access to primary and preventative care,” Goldberg said.

Aetna believes that combining their global expertise and resource strength with IHO’s provider network and local market insight will ultimately be of benefit to consumers, making healthcare products even more affordable and accessible in India. Goldberg added that it was important for Aetna to diversify its operations further into South Asia, stating “IHO provides Aetna with the opportunity to develop a presence in India and build out a broader provider network, serving both the local market and our expatriate members.”

Aetna International has been of the market leaders in the expatriate healthcare business, supporting over 400,000 members worldwide. Aetna recently launched a new suite of International Healthcare Plans (IHP) designed to cater to both expatriate employees and employing companies in order to make health benefits more accessible for members while abroad. India has a sizeable middle-class workforce overseas and it will become increasingly important to have an understanding of how best to provide them health benefits and security.

Visham Sikand, IHO’s co-founder and business development head, confirmed that Aetna’s involvement will be of great benefit to his company and India’s healthcare network as a whole. “As a global leader in health care, Aetna has the expertise and resources to take IHO’s business to the next level. I am excited about the prospects of making quality health care and wellness programs more affordable and accessible for consumers in India,” Sikand told the media.

Aetna’s acquisition of IHO has followed a slew of deals conducted by private equity firms looking to fund India’s escalating healthcare needs. These investments include HDFC PE’s purchase of a 12 percent stake in e-hospital MediAngels and Sequoia Capital and Elivar Equity INR 1.5 billion (US$3.4 million) outlay for a minority stake in Glocal Healthcare System’s hospital chain. The Indian government has also been looking to develop public-private partnerships in hospitals to improve and expand healthcare access towards the more remote and impoverished areas of the country. Recent moves made India’s regulatory authorities have opened up many of the country’s industries to greater foreign capital investment. This has been particularly welcome development in the insurance industry.

Since the insurance market in India was first opened up to the private sector in 1999, total insurance penetration has doubled and the domestic protection industry has overtaken several developed markets in output. There has been a substantial rise in insurance coverage, with both the number of life and health insurance policies increasing many times over. Despite this progress, Indian insurers themselves have yet to make a mark internationally in either sales or market capitalization. While premium income in the Indian insurance market within the upcoming decade is projected to reach between US$ 350-400 billion, a combination of regulatory adjustments and fierce competition between both local and international companies is expected to hamper profitability and constrict many insurers’ margins in the short term.

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, behavioral 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 and expatriates.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

Boosting Big Investments in “BRIC”

As the economies of Brazil, Russia, India and China continue to grow, increasing numbers of international insurance and reinsurance companies are seeking to enter into these burgeoning regional markets. As some of the most recent international insurers to tap new country markets have found out, not only must they balance short and long-term strategies, but also provide appropriate and appealing products to local populations, sometimes even in the middle of shifting regulatory environments.

Just last week, at the Insurance Day Conference in Bermuda, Joe Plumeri, CEO and Chairman of Willis Group Holdings, spoke about the importance of maintaining growth in the Indian health insurance market along with the markets of Brazil, Russia, and China, or the “BRIC” countries as they are sometimes called. He stated that due to these countries’ developing populations, “the wealth and insurable value that an exploding global middle class will create will be unprecedented in history. The resulting demand for insurance will dwarf the capital and capacity of today’s insurance market.” Plumeri emphasized that “the new middle class will need brokers that understand them and their industries. They’ll need carriers who are innovative, financially secure, and who are there when they need them-carriers with a reputation for paying legitimate claims quickly.” A report published by Standard and Poor’s this week reaffirmed his opinion, with S&P credit analyst Magarelli stating that India’s “non-life sector, which includes property/casualty and health insurance, has one of the lowest penetration rates in Asia.” Again asserting Plumeri’s opinion on what customers will need from carriers, Magarelli proclaimed that in order to maintain the growth of the Indian insurance market, insurers need to start focusing more on key factors such as customer service, innovation, and efficiency; currently, “the insurers’ persistently poor underwriting performance..could potentially stunt the industry’s growth if it remains unchanged.”

As the demand for insurance in Brazil grows, The Travelers Companies Inc has just purchased 43 percent of Brazilian insurance company J. Malucelli Participacoes em Seguros e Resseguros SA for US$410 million, with the opportunity to increase its stake in the company to 49.9 percent over the next 18 months. As J. Malucelli already commands 30% of Brazil’s largest market, it is no surprise that Vice Chairman and head of Traveler’s Financial, Professional, and International Insurance business segment Alan Schnitzer said that J. Malucelli’s “extensive customer base provides us [The Travelers Companies, Inc.] with an exceptional platform for expanding the joint venture beyond the surety business into the growing property and casualty market.”

In accordance with projections for growth in Malaysia’s insurance sector, Zurich Insurance Company Ltd has just purchased Malaysia’s Assurance Alliance Bhd, a subsidiary of MAA Holdings Bhd, in full. A financial holding company, MAA offers general and life insurance, reinsurance, property management, investment advising, and more; Zurich purchased the general and life insurance sectors of the company. The sale comes a few months after Dan Bardin, Zurich’s chief executive of Global Life Asia Pacific and the Middle East, disclosed that the company was interested in expanding in Malaysia, saying that now is a “great time” to focus on expansion in Asia, although it can be “an enormous task to integrate.” Unfortunately, the sale effectively removed the basis of MAA, resulting in the quick descent of MAA’s shares on the Bursa Malaysia Stock Exchange from 5 sen to 67.5 sen on a volume of 32.63 million shares. MAA is also suffering other monetary issues, as without adequate internal funding, the company may not be able to pay their final principal payment of RM140 million. Whether or not they are able to do so will depend on the profit made from the RM344 million (US$114 million) sale to Zurich.

Bardin has reported that the company is also interested in expanding to Singapore and Taiwan. Contrary to S&P credit analyst Magarelli’s opinion that India has “one of the lowest penetration rates in Asia”, Zurich Regional Chairman of Asia/Pacific and the Middle East Geoff Riddell has reported that the company is currently not looking at expanding to India due to the competing prices caused by large private life insurers entering the market already. In March, Warren Buffett’s Berkshire Hathaway entered the Indian insurance market to sell automobile policies for Bajaj Allianz General Insurance, while New Zealand/Australia insurance giant IAG currently owns a 26 percent share of the Indian sector of its business alongside the State Bank of India.

Managing Director of Swiss Reinsurance’s Corporate Solutions Division Ivan Gonzalez elaborated on Swiss Re’s goals for expansion in the future in an interview last week. With 80% ownership of Brazilian insurance company UBF Seguros, Swiss Re has already gotten a footing in the Latin American insurance market, but they hope to use this ownership to expand in and out of Brazil; to grow the company “as a business”. With an eye on the other three largest Latin American markets-Mexico, Chile, and Columbia, Swiss Re is also opening an office in Miami, in order to “be closer to the Latin America market”, Gonzalez said.

Locally, Hong Kong is also trying to maintain its global financial foothold, as the Hong Kong government has begun to talk about creating an independent insurance authority; its aim will be to enhance “regulation and development of the insurance industry”, the government said. Secretary of Financial Services and the Treasury KC Chan also stated that the authority will “reinforce Hong Kong’s position as an international financial center.”

It is clear that companies will continue expanding into Brazil, Russia, India, and China, but only time will tell if they will be able to provide customer service that will maintain a good relationship between these countries and their new insurers.

Insurance Companies Mentioned:

Zurich: Although its headquarters are in Switzerland, Zurich services customers in more than 180 countries, providing insurance for markets in North America, Europe, Latin America, and the Asia Pacific. In North America, Zurich is the second-largest provider of commercial general liability insurance and the fourth-largest commercial property-casualty insurer.

Swiss Reinsurance: As the second-largest re-insurer in the world, Swiss Re maintains a presence on all continents, providing reinsurance for Property and Casualty and Life and Health related issues, as well as risk management services for corporations.

Bajaj Allianz Insurance Company: A joint venture between global insurance giant Allianz SE and Bajaj Finserv Limited, one of the 2 and 3 wheeler manufacturers in the world, Bajaj Allianz offers health, child, and pension policies in more than 1,200 offices across India.

J. Malucelli Seguradora SA is a Brazilian insurance company that provides surety insurance.

Malaysian Assurance Alliance Holding’s Berhad (MAA Bhd) is a financial holding company that provides financial services and insurance in South Asia, dominating in Malaysia while also establishing a presence in Indonesia and Malaysia.

Berkshire Hathaway: Under CEO Warren Buffet, Berkshire Hathaway manages many subsidiary companies, including Geico Auto Insurance, and can also provide financial planning help.

UBF Seguros: is a small Brazilian insurance company that provides agricultural and surety insurance.

Willis Group Holdings: As one of the world’s leading insurance brokers, Willis provides professional insurance services, reinsurance, risk management, financial and human resource consulting, and more in almost 120 countries.

The Travelers Company: One of the largest American insurance companies and the largest writer of US property-casualty insurance, The Travelers Company provides personal, business, financial, professional, and international insurance and ranks 106 on the Fortune 500 list.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

More International Medical Insurance Providers Offer Full Underwriting Services

Morgan Price International Healthcare has become the latest international private medical insurance provider to respond to rising broker demand and offer full medical underwriting options for individual policyholders.

Morgan Price International Healthcare (Morgan Price) was established in 1999 to offer specialist international health insurance to expatriates working all over the world. Depending on location, Morgan Price plans are underwritten by Europ Assistance Holdings Irish Branch or Generali Worldwide Insurance Company Limited.

Full medical underwriting (FMU) options are now available through Morgan Price’s individual GlobalHealth and ExpatHealth insurance plans. These updates are the result of ongoing product development meetings with participating reinsurers as well as extensive feedback on expatriate health policy from the global intermediary market.

The announcement follows Aviva PLC’s plans, released earlier this month, to upgrade its international private medical insurance products to better meet the needs of their expanding base of international clients. Aviva’s ‘International Solutions’ modular private health insurance products now offer flexible coverage options to handle the large discrepancies in cost and quality of healthcare available when living overseas. A recent study conducted by Aviva confirmed that medical coverage issues continue to be a key concern in customers’ travel planning.

Most international private medical insurance underwriters have historically sided against providing medical cover for pre-existing conditions because expatriate clients usually will not have access to or the support of the state healthcare system in their new country of residence and employment to fall back on. While group coverage schemes above a certain size can often be underwritten irregardless of a particular group member’s medical history, individuals with pre-existing conditions have been left with few options when looking for coverage, either a policy with those conditions excluded altogether or one which is accepted but only on a moratorium basis.

Morgan Price is now one of a number of international private health insurance providers to offer comprehensive underwriting options. Last year, Bupa International announced plans to offer a similar service, initially through its direct sales channel and then on to licensed intermediaries. Other companies that feature full medical underwriting include DKV Globality and IHI Bupa, the Danish subsidiary Bupa acquired in 2005.

Speaking at the launch of Morgan Price’s full medical underwriting options, Jon Carpenter, Managing Director of Morgan Price, detailed how policyholders would be able to access the new service. Morgan Price customers will fill out a medical declaration (either online or in print), which will either result in coverage being confirmed at the normal terms or with the inclusion of a modified benefit or exclusion policy rider. The whole analytical underwriting process is expected to take no more than 1 working day in the majority of cases and “only a little longer” when auxiliary medical information is required.

According to Mr. Carpenter, the addition of full medical underwriting options will provide Morgan Price customers with “much greater certainty” about limits on coverage for any pre-existing conditions at the onset of the policy rather than at the critical claims stage.

Mr. Carpenter further stated that the move to implement more inclusive actuarial processes was a necessary development for Morgan Price. “Moratorium underwriting has worked well for us over the past 10 years, but in these days of greater clarity and transparency in all insurance matters FMU seemed like a natural progression,” he said, adding that the conventional practice for the entire expatriate health insurance industry may need to evolve. “Traditionally individual international business has been sold via the moratorium route as it is an immediate sell, but increasingly this is causing issues at the back end where customers expect fast claims turnarounds and payments. If a moratorium policy is being administered properly, then claims stage investigation is common, and this inevitably delays processing and payments while you track back through an expatriate’s medical history.”

“Underwriting up front might take a little longer but the benefits are in the claims process,” Mr. Carpenter concluded.

Insurance Companies Mentioned

Aviva

Europe’s fourth largest insurance company, with more than 300 years of experience in the global insurance industry, Aviva is committed to the safety and satisfaction of its customers. They sell a broad range of insurance products including motor and property insurance, protection and health insurance, business insurance, life insurance and pensions.

Morgan Price

Morgan Price is a UK-based specialist international and expatriate health insurance provider for clients around the world with special focus on the Middle East. The company was founded in 1999 as a managing general agent who acts on behalf of international insurers in product design, administration, premium collection and claims handling.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

Aviva Improves International Medical Insurance Policies

On May 4th 2011, Aviva PLC, the world’s sixth largest insurance group, announced an array of benefit enhancements to further improve upon their award-winning international private medical insurance services.

To better meet the needs of their expanding base of international clients, Aviva has been upgrading its international private medical insurance products. Aviva’s ‘International Solutions’ modular private health insurance products have been specifically designed to cover globally-mobile people who are living and working outside their country of nationality, such as expatriates. The policies offer flexible coverage options to handle the large discrepancies in cost and quality of healthcare available when living overseas. A recent study conducted by Aviva concluded that medical coverage issues have remained a key concern in customers’ travel planning.

Under the company’s new updates, International Solutions will raise the overall core benefit limit from £1.5 to £5 million (US$2.4 to US$8.2 million) and the previous newborn lifetime cover of £20,000 (US$33,000) for 112 days will improve fivefold to £100,000 (US$165,000) for 112 days. Routine chronic cover annual benefit has been further doubled from £7,500 (US$12,400) to £15,000 (US$25,000), while the medical practitioner annual benefit limit has been increased from £1,500 (US$2,480) to £2,500 (US$4,130).

In addition to raising the limits of their international offerings, Aviva has transferred a number of benefits from its supplementary cover options into the core cover for International Solutions products. This includes coverage for vaccinations, which had previously only been available to customers purchasing the Wellness Option module. There is also now an option to remove compulsory per claim excess on individual insurance policies.

Several of Aviva’s optional benefit packages have also been updated. The maternity option benefit cap has been lifted from £7,500 (US$12,400) to £10,000 (US$16,500) and there is now an increased annual compensation limit for consultations with a specialist, diagnostic tests and specialist-referred surgical procedures and physiotherapy, rising from £1,000 (US$1,650) to £2,500 (US$4,130). Improvements have also been made to dental and optical services, as well as increased out-patient service options for both individual and corporate International Solutions insurance policies.

To complement International Solutions’ coverage enhancements, Aviva has added a StandbyMD medical consultation service. This exclusive arrangement grants Aviva customers 24 hour access to a physician offering medical support and advice. The healthcare concierge service is available through 4,000 cities, across 86 different countries worldwide. StandbyMD provides international health insurance customers with prompt telephone access to a qualified physician. Policyholders can also elect to arrange face-to-face consultations or home visits.

Additionally, a new repatriation benefit rider has been developed for expatriate customers with the compassionate travel option, which will enable policyholders to return to their home country (or country of nominated residence) if certain medical treatment is not available locally. If a policyholder possessing the benefit is evacuated, Aviva will now provide compensation for someone to accompany them on their journey, even if the individual in question does not possess an Aviva international health insurance policy.

For expatriate clients, Aviva has introduced a new electronic service which will enable customers to keep important health records and allow prompt access to said vital information while abroad. The Aviva ‘My Health Passport’ is available through two different formats: a small software version used to store practical information such as personal details and GP and insurance contact information, and a printed booklet which covers more comprehensive health information.

Aviva has set up a new provider network in the United States through a partnership with Miami-based Olympus Managed Healthcare. This arrangement incorporates an additional 6,000 hospitals, over half a million doctors and 57,000 pharmacies into Aviva’s health provider network across the US. Aviva policyholders will be able to locate a qualified American doctor or hospital through the comprehensive online network. If customers choose to go within the health provider network they will have their bills settled directly by Aviva, removing the need for individuals to handle costly medical bills themselves.

Olympus Managed Healthcare are market leaders in claims management, handling over 125,000 claims a year on average. Aviva believes that this joint venture will provide customers with additional security, dedicated support and improved access to healthcare in the United States.

Teresa Rogers, international business lead of Aviva UK Health, commented on the inception of International Solutions policy updates: “By listening to our intermediaries and customers, we’ve been able to focus on improving the right things. We’ve enhanced the benefits and support that our customers tell us are most important to them. This not only includes increasing monetary limits, but also adding expert support services such StandByMD to further improve the peace of mind our customers receive from their policy.”

All new benefits will become available from July 2011 for both new customers and existing policyholders looking to renew their International Solutions service.

Aviva has been very proactive in expanding and upgrading its operations to attract more potential clients worldwide. Aviva has established a presence in many of the increasingly lucrative Asian insurance markets through joint ventures with locally based insurance companies in order to capitalize on the rising demand for insurance products and services in the region. The company has been able to maintain growth across key markets and will look to further improve upon its level of service to sustain strong performance through 2011.

Insurance Company Mentioned

Aviva

Europe’s fourth largest insurance company, with more than 300 years of experience in the global insurance industry, Aviva is committed to the safety and satisfaction of its customers. They sell a broad range of insurance products including motor and property insurance, protection and health insurance, business insurance, life insurance and pensions.

Olympus Managed Healthcare

Olympus Managed Healthcare offers medical claims administration and cost containment services in the international marketplace. The company also provides third party administrator, call center, and consultations services, as well as other specialty programs. Olympus Managed Healthcare operates through a network of doctors and hospitals around the world. The company was founded in 1994 and is based in Miami, Florida.

Standby MD

StandbyMD is a healthcare concierge service that provides insured persons with personalized physician oriented access to healthcare services 24 hours a day, seven days a week and includes an assortment of both hands-on and referral based medical solutions.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

New Health Screening Requirements for Expats in UAE

Last Sunday, the UAE ‘s Ministerial Service Council, chaired by Shaikh Mansour Bin Zayed Al Nahyan, the Deputy Prime Minister and Minister of Presidential Affairs, announced that expatriate workers who want to work in the UAE must get medical tests done in both their home countries and in the UAE prior to receiving a work visa for the emirate.

Many expatriate workers try to cheat the system by providing a fake medical test result from their home country. The new system will curb the number of workers, who slip into the UAE work force with fake certificates, by mandating re-tests once the workers arrive in the UAE.

The Ministerial Service Council has ordered the Ministry of Health to prepare and implement the legislations necessary to put the new system into effect. Expatriate workers, who bring communicable diseases into the UAE, have been a long-term issue for the council.

Another challenge that the council fights in preventing expatriate workers with communicable diseases from entering the country is internal corruption. Recently eight people, an Emirati health official, her uncle, and six others, were accused of accepting bribes and forging health certificates for individuals with infectious diseases.

The 25-year old Emirati woman, who worked for the Dubai Health Authority (DHA), is charged with accepting 30,000 Dhs ($8,167 USD) in bribe from her 42-year old Indian uncle to forge and issue health certificates to expatriate workers who have communicable diseases.

The uncle owns a typing center, which he is accused of working out of to distribute clean medical certificates to people with infectious diseases, ranging from hepatitis to Acquired Immuno-Deficiency Syndrome (AIDS). Prosecutors claimed that the 25-year old niece would abuse her authority and position to stamp certificates with a free-of-communicable-diseases stamp during her night shift.

Another two DHA clerks, a 28-year old Iranian and a 30-year old Indian, are also charged for accepting 45,000 Dhs ($12,251 USD) from four Pakistani workers to forge similar health certificates.

As of Monday, the Emirati woman has pleaded not guilty before the Dubai Court of First Instance. Her uncle also pleaded not guilty as he defended himself in the courtroom, which was presided by Judge Hamad Abdul Latif Abdul Jaward.

The 28-year old Iranian, 30-year old Indian, and one of the four Pakistani workers have too pleaded not guilty, while the other three Pakistani workers were not present for Monday’s trial.

An Emirati second lieutenant testified that the Dubai Police’s CID was informed that an Asian suspect was responsible for forging health certificates at one of the DHA’s fitness centers. He also notes, “We arrested the uncle who ran a typing center. During interrogation, he admitted that he collected from one of the Pakistani workers applications for individuals with infectious diseases and needed to renew their residence permits or have one issued.” The lieutenant also claimed that the uncle would charge around 500 Dhs to 1,000 Dhs ($136 to $272 USD) per application.

He goes on to say, “We detained one of the Pakistani individuals, who immediately admitted the two clerks, who worked in fitness centers, used to issue for him the forged certificates.”

Prosecution records showed that the confession was confirmed by another one of the Pakistani workers after he was arrested.

Although the new system cannot prevent DHA health officials from forging health certificates, it can deter expatriate workers who have infectious diseases from coming into the country with false test results and help relieve the pressure on the UAE healthcare system.

Any expatriate who wishes to work and live in the UAE is required to get a health check to see if he or she has HIV/AIDS, syphilis, or pulmonary TB. Housemaids and nannies will also be subjected to a pregnancy test, while kindergarten school employees, barber shop, health club, and restaurant workers will also have to test for hepatitis B.

The Ministerial Service Council hopes that the new system will lessen the stress and expenses on the UAE healthcare system, which has to treat all patients with communicable diseases before deporting them. The number of people waiting to get tested is also expected to drop as expatriate workers will be deterred from trying to get into the country with faked test results. DHA clinics have been so busy recently that some have suffered a breakdown in services.