Sep
2
Discovery Acquisition of Standard Life Healthcare Approved
Filed Under Health Insurance, Insurance Company, Medical Insurance, United Kingdom | 1 Comment
After having received approval from Britain’s Financial Services Authority and the South African Reserve Bank, the acquisition of Standard Life’s health insurance division, Standard Life Healthcare, by Discovery Holdings has been completed, putting PruHealth in a strong position for growth.
The finalized acquisition and integration of the companies over the next few months will make PruHealth a competitor of scale in the UK private medical insurance market, growing the number of people covered up to 700,000 and boosting market share up to 11 percent. The additional business makes PruHealth the fourth largest private medical insurer in the UK.
The integration of the two companies will take some months, and when it arrives it will see a suite of private medical insurance products based upon the best aspects of currently available insurance policies from PruHealth and Standard Life Healthcare. The new product suite is expected to be ready by the end of 2010, but in the mean time PruHealth will continue to service and sell all products from both PruHealth’s and Standard Life Healthcare’s ranges.
While the integration and new product suite is being arranged, there will be no changes to broker arrangements, customer service, existing policies and account management and sales support for products offered by PruHealth and those previous offered by Standard Life Healthcare. If there are any planned changes to a customer’s policy, they will be notified when the policy is up for renewal.
In the transitional period previous Standard Life Healthcare policies will be referred to under a new brand as ‘PruHealth Previously Standard Life Healthcare’, in order to ensure the integration is done smoothly.
The previous Chief Executive Officer of Discovery Health, Neville Koopowitz, has been appointed as the new CEO of PruHealth. Mr. Koopowitz said that “We are proud to be able to bring to clients both the award-winning product innovation and the excellent service history of two leading PMI businesses, and are excited about the opportunity to further develop our presence in the UK market. We are working hard to bring clients a new product suite, building on PruHealth’s wellness expertise and Standard Life Healthcare’s emphasis on outstanding service and comprehensive coverage.”
Insurance Companies Mentioned:
Discovery Holdings
Discovery is a financial services provider based in Johannesburg, South Africa, and was founded in 1992. Discovery offers health and life insurance in different markets as well as investment services and credit cards. They also have a joint venture life and health insurance companies with Prudential called PruHealth and PruProtect, which are structured under the PruProtection banner.
Standard Life plc.
Standard Life was established in 1825 and headquartered in Edinburgh, Scotland. Since its beginnings, Standard Life has expanded into a financial services company offering pensions, life assurance, and investment management to over 6.5 million customers around the globe.
PruHealth
PruHealth is part of a joint venture named Prudential Health Holdings Limited, between Prudential Assurance Company of the UK and Discovery Holdings. The joint venture was started in 2004 and offers private medical insurance in the United Kingdom. Currently Discovery Holdings owns a 75 percent stake in the joint venture while Prudential Assurance holds the remaining 25 percent.
Aug
31
Allianz Group Profit Up 22% for Year to Date
Filed Under Allianz, Insurance Company, United Kingdom | 1 Comment
Allianz Group, the German insurer, has reported a profit of US$4.95 billion (EUR 3.9 billion) for the first-half of 2010, equivalent to a 22% increase over the same period last year. Revenues during the first half of 2010 increased to US$71 billion (EUR 56 billion) from US$63.4 billion (EUR 49.9 billion) during the same period in 2009.
In terms of net income, the corresponding increase achieved by Allianz during the same period year-on-year was 39.5% to US$3.43 billion (EUR 2.7 billion) from US$2.4 billion (EUR 1.9 billion).
Gross written premiums for property and casualty insurance cover increased a 2% year-on-year to US$30.35 billion (EUR 23.9 billion) from US$29.7 billion (EUR 23.4 billion) achieved in the first half of 2009, with the corresponding operating profit amounting to US$2.36 billion (EUR 1.86 billion).
Allianz recorded second-quarter (Q2) of 2010 revenues in the United Kingdom of US$671 million (EUR 528 million), compared to Q2 2009 revenues of US$624 million (EUR 491 million); driven mainly by an increase in policy count in their commercial insurance lines and their new corporate partnerships in the Automotive, Retail and Financial Services industries. Allianz in the UK delivers tailored insurance solutions to these corporate partners and provides a wide range of market-leading general insurance products to companies, brokers and consumers.
The statement released by Michael Diekmann, Chief Executive Officer of Allianz SE, the holding company of Allianz Group, explained: “In a first half-year marked by exceptionally high natural catastrophe losses, our success shows that our diversified approach across business segments and regions is helping us to ensure stable results. In addition, our strong capitalization and conservative capital management underline the reliability for which Allianz is renowned.”
Insurance Company mentioned:
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
Aug
23
Emergency Evacuation Coverage Often Ignored
Filed Under Expat Insurance, Health Insurance, Healthcare, International Healthcare, Medical Insurance, Spain, United Kingdom | 4 Comments
With the ability to travel across the world getting easier every year, one thing many people do not take into account is the price of getting home should an accident occur. Cases like Carrie-Anne Dudbridge and Ryan Elley are sad illustrations of the necessities of travel insurance in the modern age.
There have been a number of incidents this year involving holidaymakers, many of them from Britain, who have suffered a tragic accident while vacationing in another country. Many of these occurrences have happened within Europe, likely due to the fact that traveling between European Union member states is an easy and economical way to reach some of the most sought after travel destinations in the world.
The European Health Insurance Card (EHIC), which replaced the E111 in 2006, also reassures travelers within the EU, by offering them some level of health insurance coverage when visiting other member states. However, in some cases the EHIC may be lulling people into a false sense of safety, as many are still confused over what exactly is covered by the EHIC.
The EHIC guarantees holder the same access to healthcare as a local resident in the event of illness or accident while traveling. While this can lead to some minor aggravation and bureaucratic hoop-jumping, depending on whether the country the EHIC holder is visiting has copayments, or relies on a system where you pay for treatment up front and claim the costs back, recent accidents have demonstrated that it is no replacement for actual travel or international health insurance.
Should someone suffer an unforeseen catastrophic injury that requires hospitalization while on vacation, it may be necessary to transfer the patient by air ambulance to the nearest medical facility capable of providing the necessary care. Furthermore, depending on the quality of the local healthcare system or the feasibility of waiting for the patient to recover enough to travel home regularly, it may be necessary to transport the patient back to their home nation via medical repatriation. In either case, the costs associated with both air ambulances and medical repatriation are extraordinary; without the appropriate medical insurance in place individuals are left facing thousands of dollars in fees.
Ryan Elley and Carrie-Anne Dudbridge are just two of the most recent in a long line of unfortunate accidents in European getaway locations. Ryan Elley, 20 years old, made a last-minute decision to join his friends in Playa d’en Bossa, a well known party destination on the Spanish island of Ibiza, without taking out health insurance. While at the Jet Apartments at the resort, Elley fell from a second floor balcony, breaking his spine in three places, puncturing a lung and suffering serious head injuries. Elley was the second British national to fall from a balcony at the Jet Apartments, after Peter Carter was injured earlier in 2010 when he attempted to jump from a 3rd floor balcony into the pool, but misjudged the distance. This activity has apparently happened frequently enough that it is now dubbed ‘balconing’ and Spanish authorities in the Balearic Islands are asking tourists to restrain themselves to prevent injuries.
Ryan Elley was placed in a medical coma at the Son Dureta hospital in Palma, Majorca. His parents are trying to repatriate him to England, but due to the fact he did not take out medical insurance they now face a GBP 15,000 (USD 23,360) bill for the air ambulance. So far his family and friends have raised GBP 8,000 towards the costs of the air ambulance.
Carrie-Anne Dudbridge was a newlywed on her honeymoon to the Greek island of Corfu with husband Michael Dudbridge, when she suffered a tragic accident and fell 20 feet from the balcony, fracturing her spine in three places. The Dudbridges did have the EHIC, which they believed would cover their expenses in the case of an accident, however, they found out that the EHIC does not provide cover for medical transportation.
Because the couple did not have travel insurance, they faced having to pay GBP 16,000 (USD 25,000) for an air ambulance to repatriate Carrie-Anne back to England. Mr. Dudbridge launched an appeal for help on the internet, which thankfully has raised about GBP 20,000 (USD 31,190), enough to have the Dudbridges flown back to England on Sunday, August 22nd 2010, by Mediaviation, a private air ambulance service.
These incidents occurred in first world nations, Greece and Spain respectively, where the quality of healthcare and medical treatment is generally considered to be fairly high. If Carrie-Anne had suffered her injury in a country where the provision of medical treatment is much more limited the costs involved with transporting her home safely could be much higher. Were Ryan Elley to have been injured somewhere further a field than Spain, it could have been very difficult and cost-prohibitive for his family to fly out and assist him, in effect leaving him alone in a foreign country with no insurance.
Thailand for instance, where approximately 860,000 Briton tourists visited between March 2009 and 2010, happens to be the place where, proportionally, the most number of British tourists are likely to die or end up in hospital according to British Behavior Abroad, a report by the British Foreign & Commonwealth Office (FCO). The report also illustrates the unfortunate fact that due to financial pressures, many holidaymakers are forgoing travel insurance to save money.
It is important to make sure that you have some level of protection when traveling, whether that is through basic travel insurance or an international medical insurance plan that covers emergency evacuations. While having some form of protection is a start, it is necessary to have an understanding of what your insurance covers, as in some cases travel insurance will not cover you if there is an accident where drugs or alcohol are involved. Accidents do happen, and as Chris Bryant, the British Foreign Office Minister said, “Getting comprehensive travel insurance means that whilst an accident may disrupt your holiday, it won’t bankrupt you in extortionate medical or repatriation bills.”
Aug
18
Investors Challenge Aviva CEO on Refusal of RSA Bid
Filed Under Aviva, Insurance Company, United Kingdom | 1 Comment
Aviva investors have started to question whether the refusal of the GBP 5 billion (EUR 4.13 billion) bid from RSA Insurance Group Plc was the correct way forward, and this question is being addressed to Mr Andrew Moss, who three months after becoming the Chief Operating Officer of Aviva Plc back in July 2007, unveiled his “One Aviva Twice the Value” strategy. Fast forward to the present, and Aviva shares have lost almost half their value since then, prompting investors to ponder about the merits of a breakup of the company.
The market value of Aviva currently stands at GBP 11 billion (EUR 9.1 billion). The refused GBP 5 billion (EUR 4.13 billion) bid from RSA was for the general insurance division of Aviva, which sells auto and home-owners’ coverage.
The challenge posed to Mr. Moss is to convince Aviva investors that more value can be created by him and his leadership, rather than from someone else coming from outside the company. The perception by analysts is that breaking up the company would give current shareholders more value than what they are getting now.
Online price-comparison websites, an ageing population and the slowdown in growth of the UK economy have been given as reasons for the lacklustre profits reported by British insurers during the past three years. In spite of this, the UK is the third most-insured country in the world even though the size of its economy occupies the sixth place globally.
Should RSA successfully acquire Aviva’s general insurance businesses in the UK, Ireland and Canada they would become Britain’s biggest non-life insurer, putting an end to Aviva’s strategic goal of selling all types of insurance products. Aviva is the only major British insurer currently selling life and pension products alongside motor and home insurance.
Insurance Companies mentioned:
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.
RSA has a proud heritage dating back almost 300 years. The current company structure was created in 1996 following the merger of two of the largest insurance companies in the UK, Royal Insurance and Sun Alliance. In 2008 the company shortened their name to RSA and simplified and refreshed their corporate brand. RSA has over 20 million customers worldwide. The Group currently manages GBP 14.3 billion of investments. RSA is a member of the FTSE4Good Index. RSA employs around 21,000 people worldwide.
Aug
16
RSA Bid for Aviva’s UK General Insurance Unit Rejected
Filed Under Aviva, Health Insurance, Insurance Company, Life Insurance, United Kingdom | 1 Comment
RSA has been reported as having made a GBP 5 billion (USD 7.8 billion) bid for Aviva’s general insurance business in the UK, which has been turned down by Aviva’s board. Aviva shares jumped over 5 percent on the news.
RSA has previously targeted much smaller companies for acquisition, such as their purchase earlier in August of Irish insurance company 123 Money Limited. Considering that RSA’s market capitlalization stands only at GBP 4.4 billion (USD 6.9 billion), the purchase of Aviva’s general insurance unit at GBP 5 billion (USD 7.8 billion) would more than double the size of the company, making the financing of such an acquisition both challenging and risky.
Aviva is Britain’s only major composite insurance company, offering general insurance and health insurance as well as life insurance and pension funds. While some analysts see Aviva’s constituent businesses as possibly ripe for the picking, given that pre-tax profit in Aviva’s general and health insurance business fell 3.7 percent year-on-year for the first half of 2010 to GBP 525 million (USD 820 million).
However, with the general and health insurance unit accounting for more than 24 percent of Aviva’s pre-tax operating profit, some see the unit as being strategically important, as it is a vital source of money to finance growth in Aviva’s life insurance business. Considering the fact that Aviva’s total pretax profit grew 21 percent year-on-year in the first half of 2010, and has already signed two major bancassurance deals with RBS and Santander, the latter of which includes a general insurance relationship, it seems unlikely that Aviva would be willing to make the deal.
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.
RSA
RSA has a proud heritage dating back almost 300 years. The current company structure was created in 1996 following the merger of two of the largest insurance companies in the UK, Royal Insurance and Sun Alliance. In 2008 the company shortened their name to RSA and simplified and refreshed their corporate brand. RSA has over 20 million customers worldwide. The Group currently manages GBP 14.3 billion of investments. RSA is a member of the FTSE4Good Index. RSA employs around 21,000 people worldwide.
Aug
13
Bupa Growing Abroad
Filed Under BUPA, Expat Insurance, Health Insurance, Hong Kong, IHI Bupa, Insurance Company, International Healthcare, Medical Insurance, Spain, USA Health Insurance, United Kingdom | Leave a Comment
Bupa, the UK’s largest private medical insurance provider, has announced its financial results for the first half of 2010. The report indicated that while the company’s UK membership numbers remained flat, there was considerable growth in international markets contributing to an overall increase in income of £3.71 billion(US$ 5.7 billion) for Bupa.
Trading conditions in the UK, US and Spain have been particularly difficult since 2008, reflecting the fallout from the general downturn in business activity in these countries. However, trading in Australia and other non-European countries, and the USA, has helped Bupa generate an overall increase in revenue for the first six months of 2010. The UK health insurer reports a 10 per cent increase in revenue to £3.71 billion (US$ 5.7 billion) producing a 5% increase in surplus funds amounting to overall growth of £183.6 million (US$ 285 million) for the same period. As Bupa is a provident association all funds are reinvested into the company, consequently Bupa does not recognize “profit” per-se, but rather “surplus” revenue.
The 10% increase in revenue for Bupa was driven by organic growth of 4% and agreeable foreign exchange movements of 6%. Higher sales in Australia contributed to higher revenue, and a favorable exchange rate from the Australia Dollar to the Sterling was a strong factor for the company’s success.
As a result of the tough economic conditions in the UK, Bupa experienced a 0.8% decline in membership numbers over the 6 month period. Revenue and profits from the UK market remained flat for the first half of 2010 following one-off restructuring costs, but significant loss was contained by lower claims payments and cost savings resulting from new a new administration system adopted in August 2009.
Trading in the USA private medical market was also adversely affected because of the economic downturn, high unemployment levels, and the reform of the healthcare system in the country. These factors all contributed to the slowdown in new business sales and renewals. Bupa continues to develop new products to meet the changing demands in the American private healthcare market, with new business opportunities arising following the passing of health reform legislation; industry watchers expect increased sales volume for USA private medical insurance as President Obama’s reforms roll out through to 2014.
In international markets, Bupa’s surplus increased from £51.3 million (US$79.8 million) to £88.7 million (US$138 million) over the six month period, until 30th of June 2010. Bupa International still remains the largest provider of international private medical insurance, with a global 2% increase in policyholders over the reporting period; primarily due to Bupa Arabia, and Bupa Australia experiencing increasing membership numbers.
Ray King, Chief Executive of Bupa commented on the future of the Australian health insurance market by saying: ‘In our Australian insurance business, the integration programme is almost complete and we look forward to the launch of a single product suite later this year which should further enhance our competitive position.”
In other markets, Bupa Latin America reported an increase in profits compared to the same period last year, explained by steady membership growth and lower claims being made. Bupa Hong Kong revenue increased modestly, and Max Bupa, the joint India venture launched in March 2010, has 6 retail offices in major cities across the country; this is planned to increase to 9 outlets by the end of 2010.
The future for Bupa in the UK and US remains unclear due to the stringent economic conditions and the impact on demand for private health insurance products. However with both governments implementing major reviews of healthcare provision it may give the UK medical provider opportunities to accelerate business in these markets. Chief Executive of Bupa, Ray King said “The UK and US government started to articulate their plans for reform of their healthcare systems and we believe that this should offer new opportunities for businesses in the future.”
The future outlook for Bupa internationally looks positive; consolidating their market presence in the international health insurance market. However, the markets in Europe and North America are still subject to difficult economic conditions.
Insurance Company Mentioned:
Bupa
Bupa was established more than 60 years ago in the UK and is now has ten million customers in over 190 countries, and over 52,000 employees around the world. Bupa is a leading international healthcare provider, offering personal and corporate health insurance, workplace health services and health assessments. As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world. Bupa has operations around the world, principally in the UK, Australia, Spain, New Zealand and the US, as well as Hong Kong, Thailand, Saudi Arabia, India, China and across Latin America.
Aug
11
Aviva Profits Up as Aviva and RBS Sign New Life Insurance Distribution Deal
Filed Under Aviva, Income Protection, Insurance Company, Life Insurance, United Kingdom | 4 Comments
International insurance company, Aviva, has recorded a 21 percent increase in operating profits in the first half of 2010. Aviva is also in the midst of discussing significant structural changes to their profit sharing joint-venture with Royal Bank of Scotland (RBS), which comes shortly after their deal to be the exclusive provider of life protection insurance products with Santander in the UK.
Aviva recorded IFRS operating profits of GBP 1.27 billion (USD 2 billion) for the first half of the fiscal year, showing a 21 percent increase over the same time last year. Aviva also generated net operating capital of GBP 900 million (USD 1.42 billion), which brings the company a long ways towards its revised target of GBP 1.5 billion (USD 2.37 billion) for the year.
Aviva is also in discussions over the future of their joint-venture with RBS, which comes close on the heels of Aviva’s signed deal to be the sole provider of protection and life insurance products to Santander in the UK.
Aviva’s joint-venture with RBS in the UK has been running for about 10 years and was previously set up so that profits from the sale and distribution of the life insurance products was shared equally between the two entities. The preliminary terms would see Aviva engineer life protection insurance products, which RBS would then distribute, keeping the profit. However, negotiations between the two are expected to continue through the second half of the year, with the joint-venture being wound down by the end of 2010.
Earlier in August, Aviva signed a five year distribution deal with Santander over life insurance products in the UK, expanding upon the preexisting relationship between Aviva and Santander in the general insurance sector. It will see Santander offering Aviva’s life insurance products exclusively through its bancassurance channels which include 1,300 branches in the UK, as well as telephone and internet banking. The deal will come into effect from June 2011.
The Chief Executive of Aviva’s UK business, Mark Hodges said “As Britain’s leading insurer, our strength lies in the breadth and quality of our product portfolio across both general and life insurance and I’m delighted that Santander’s customers will benefit from this. Our new distribution agreement will build on our solid existing general insurance relationship with Santander, creating a platform for significant growth across our UK business.”
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.
Aug
4
Elderly Britons Urged To Get Medical Cover When Abroad
Filed Under Expat Insurance, Medical Insurance, Uncategorized, United Kingdom | 5 Comments
The Foreign Office is encouraging elderly Britons who go abroad to ensure they have full medical cover. A report released in July 2010 found many elderly British holidaymakers traveling abroad lacked adequate medical cover or had no cover at all.
The British Behaviour Abroad report – complied by global foreign office staff – analyzed insurance taken by British travelers during the period between April 2009 and March 2010. It highlighted the need for British nationals to have sufficient medical care when abroad.
The report concluded that people buy travel insurance but often fail to declare pre-existing medical conditions thus leading to policies becoming invalid. Consequently travelers are left to fund medical costs from their own pockets.
British consular assistance was required for hospitalization a total of 3,689 times during the review period, with Spain being the main country where medical aid was required. Other destinations featuring highly were the USA, Egypt, France, China, Pakistan, Thailand, Greece, Australia and Italy. The report highlighted the fact that consular offices in foreign countries are only able to assist with hospitalization needs for British nationals, but cannot pay patients medical bills.
As an example the British foreign office in the USA was required to facilitate assistance for a couple who did not declare the husband’s double heart bypass before departure, rendering the medical insurance policy held invalid. The consular team was able to arrange a repayment plan with the hospital for the couple to meet the medical costs. Prior to the consular team’s involvement, the couple had already paid US$10,000 (£6,500) towards medical costs incurred; assistance was required when the medical costs spiraled upwards.
The foreign office found that 19% of British travelers leave their home without any form of medical insurance. Many people believing their credit card accident cover, home insurance or private health cover will be sufficient to cover all eventualities when they are abroad – without realizing that this in fact is not the case. Comprehensive travel and medical insurance are required to give individuals proper cover when overseas.
In addition to the foreign office report, the Association of British Insurers (ABI) also announced that the total medical bill payment for 2009 reached £274 million (US$393 million ) – or £5.3 million (US$8.4 million) a week (US$8.4 million). The cost of medical expenses has increased over 270% in the last 5 years. The ABI said 336,000 claims were made for overseas emergency medical treatment in 2009 – a number that has tripled in the last 5 years. The cost of medical treatment accounts for 60% of the total cost of all claims paid by travel insurers.
The ABI’s Director of General Insurance and Health, Mick Starling said: “The often high costs of overseas medical treatment make travel insurance essential for anyone traveling abroad. All travelers should ensure that they take details of emergency medical helpline telephone numbers included in their travel policy to call for advice and help should they fall ill.”
A claim dealt with by an insurer included a £49,000 (US$78,000) payment for a traveler who required a coronary artery bypass and an emergency flight home, when he was taken ill in the USA. There was also a claim for a policy holder who was taken ill while on holiday in Cyprus – suffering from severe, allergic reaction; £9,000 (US$14,000) was paid out by the insurer. These figures highlight the necessity for proper medical insurance for British travelers.
Travelers or expatriates who do not have adequate medical and travel insurance, face the potential of having to fund costs for emergency medical services form their own pockets. The financial cost for air ambulance services can be £35,000 (US$ 55,000) or more and for repatriation from the East coast of the USA or a schedule flight from Australia with a doctor escort can be £15,000 (US$ 23,000) or more.
When taking out travel insurance policy cover the traveler should ensure it includes – medical and health cover for an injury or sudden illness abroad, 24-hour emergency assistance, personal liability cover, cancellation and curtailment, also specific extra cover is needed for activities such as adventure sports.
Mentioned Enterprises:
Association of British Insurers
The ABI (Association of British Insurers) represents the collective interests of the UK’s insurance industry. The Association speaks out on issues of common interest; helps to inform and participate in debates on public policy issues; and also acts as an advocate for high standards of customer service in the insurance industry.
The Foreign and Commonwealth Office
The Foreign and Commonwealth Office – the Foreign Office for short – is the government department responsible for promoting British interests overseas and supporting our citizens and businesses around the globe.
Aug
2
Medical Tourism – The Growing Trend Continues
Filed Under Health Insurance, Healthcare, International Healthcare, USA Health Insurance, United Kingdom | 11 Comments
The growing demand for private healthcare in buoyant Asian markets is highlighted by the Malaysian state owed Khazanah Nasional Berhad winning the battle to acquire Singapore’s Parkway Holdings, against stiff competition from Indian based Fortis Healthcare.
In 2009 Fortis Healthcare estimated the Indian healthcare market to be worth US$38 billion; this it is expected to rise to US$62.9 billion by 2014. Foreign nationals seeking healthcare treatment are being drawn to private Indian healthcare providers, as medical treatment can be offered at a fraction of the price compared to USA and European healthcare alternatives.
The Indian medical industry has seen particular growth in recent years, taking full advantage of the demand for modern, high quality, medical treatment for patients throughout the world who require affordable treatment in internationally recognized hospitals. This is being driven by India’s ability to rival other recognized sources of quality healthcare in the Asian region, such as Thailand and the Philippines, both in quality and cost.
The position has now been reached where a procedure for a heart bypass can be conducted in a private Indian hospital for approximately US $10,000; compared with an Asian rival in Thailand or Singapore, where costs amount to between US $11,000 to $18,500 it can be immediately seen that the Indian Healthcare option is by far the more affordable. A similar treatment in the USA would cost approximately $130,000 well out of the range of most average patients to cover out-of-pocket.
Patients in the United Kingdom, USA, Australia and Canada are often used to treatment by Indian medical professionals, who have been present in private and public healthcare facilities for many years in these countries due to the higher wage levels, and more comprehensive employment opportunities. This presence of Indian medical professionals in Western nations has given foreign patients confidence in seeking medical treatment in India.
The Indian government is taking measures to ensure maximum potential by giving consideration to the provision of a visa to a patient and escort, with a possible extension for a three year period. This should ensure that patients traveling to India for the express purpose of receiving medical care have an easier time entering and exiting the country, in addition to ensuring that these same patients have the support they need from their escorts who have historically faced a challenge in entering the country to accompany someone seeking medical care.
The medical tourism market in Asia initially arose in Singapore, with the island nation raising the bar for medical treatment by setting the standards to rival the US. Thailand and Malaysia followed suit with comprehensive medical tourism offerings catering to overseas patients. However, private healthcare in India emerging as the dominant provider in the region, and in more recent times, has become particularly aggressive in acquiring private healthcare facilities.
However, countries such as Taiwan and South Korea are also taking measures to penetrate the private healthcare market with the objective of securing a slice of the business currently dominated by the four main Asian based suppliers. The South Korean government is taking steps to grow the medical tourism industry by offering a high standard of medical care to the Japanese market – especially in regards to cosmetic surgery, such as facelifts.
The top Asian private healthcare providers in Singapore, India, Malaysia and Thailand are battling to increase their strength in the market. National healthcare providers in the West are burdened with increasingly aging populations which often require heightened levels of medical care. In a unique recent development, despite the fact that not all residents of first world nations have private healthcare insurance, in some cases the national health services in these countries are willing to fund procedures in Far East countries. Some North American and European countries are all considering such a plan if they do not currently have a similar proposal already in place. This key development will only serve to open up the private healthcare market in Asia, and as such more growth is forecast.
Much of the demand for private healthcare in Asia comes from Africa and the Middle East, where the healthcare infrastructure is still lagging behind the rest of the world world. There is an increasing number of western patients seeking medical treatment in foreign private healthcare facilities, especially in India. India has emerged as a popular destination for western couples seeking treatment for medical procedures which would be prohibitively expensive in developed nations such as fertility treatment. Asian private healthcare providers can rival western nations with their quality-of-care, state-of-the-art treatment centers and highly trained medical professionals. These facilities enable them to take full advantage of the stagnant national healthcare systems in the UK, Canada, and the extraordinarily expensive procedures in the US.
Asian private healthcare providers are looking to the US to increase their revenue and boost profits. For example, a patient in the US who requires a heart bypass, may need to pay US$ 130,000 for the procedure, while the same operation in a private hospital in Bangkok can cost in the region of US$30,000. A popular procedure for foreign nationals is hip replacements; increasing numbers of patients are seeking treatment in countries like Singapore, at a cost of US$ 12,000 or $9,000 in India, compared to US$43,000 in the USA.
The aim of various Asian governments is to take full advantage of the growing profitable medical tourism market. The success experienced in this industry by countries like Singapore and Thailand has lead to governments of Taiwan and Malaysia offering private healthcare providers with high levels of support to encourage investment in the medical tourism sector. The Taiwanese Department of Health estimates the medical tourism industry will create 3, 860 jobs and generate US$ 342 billion worth of revenue by 2014.
However, medical tourism has not been immune from the economic downturn; the renowned Bumrungrad Hospital in Bangkok reporting a 22 per cent decline in profits in 2009 from the highs of 2007.
Medical tourism looks certain to continue its explosive advance throughout the Asia-Pacific Region; Singapore estimates the 1 million medical tourists entering the country generate US$1.6 billion annually. Malaysia is expected to increase its market share in the lucrative industry to approximately US $600 million over the next 5 years. The future of medical tourism in Asia is to focus on the American and European market. Its intention is to build confidence in the sector; offering patients’ unrivaled value for money with medical procedures ranging from hip replacements to heart bypasses.
As US insurance companies consider adding Asian private healthcare providers to their coverage, the medical tourism across the Asian regions looks certain to continue rapidly, expanding its reach to foreign patients.
A typical average price comparison, in terms of the costs of various operations, in India, Singapore, Thailand, and the USA can be seen below:
| Procedure | India | Singapore | Thailand | USA |
| Heart Bypass | 10000 | 185000 | 11000 | 130,000 |
| Heart Valve Replacement | 9000 | 125000 | 10000 | 160000 |
| Angioplasty | 11000 | 13000 | 13000 | 57000 |
| Hip Replacement | 9000 | 12000 | 12000 | 43000 |
| Hysterectomy | 3000 | 6000 | 4500 | 20000 |
| Knee Replacement | 40000 | 13000 | 10000 | 8500 |
| Spinal Fusion | 5500 | 9000 | 7000 | 62000 |
All figures are shown in US $
Companies mentioned:
Parkway Holdings Limited
Parkway Holdings Limited, is one of the region’s leading providers of healthcare services, with a network of 16 hospitals with more than 3,400 beds throughout Asia, including Singapore, Malaysia, Brunei, India and China.
Fortis Healthcare Limited
Fortis Healthcare Limited is a healthcare provider having a network of 28 hospitals, satellite centers and heart command centers with nearly 3,300 beds capacity.
Khazanah Nasional
Khazanah Nasional is the investment holding arm of the Government of Malaysia and is empowered as the Government’s strategic investor in new industries and markets.
Bumrungrad International
The Group’s principal activities are owning and operating hospitals. Its flagship hospital, Bumrungrad International, is a renowned medical centre attracting over 1 million patients annually and named one of the world’s top ten international hospitals by Newsweek International. The Company also owns a businesses in real estate and anti-aging and functional medicine.
Jul
20
Lloyd’s Insurer Chaucer Opens New Office in Buenos Aires, Argentina
Filed Under Insurance Company, United Kingdom | 1 Comment
Chaucer Holdings Plc, the diversified insurance group which is a subsidiary of Lloyd’s of London, has recently announced the opening of a new office in Buenos Aires, the capital of Argentina. This new office will operate on behalf of Chaucer Syndicate 1084, and is aiming to get a share of the facultative property and related risks in the Latin American market.
The new office will start underwriting business effective 01 October 2010. The core of the management team is formed by Uwe Fischer, as general manager, plus Alejandro Ferrin and Guido Wolman, all three of whom formerly worked with Glacier Re, which is an established European Specialty reinsurer head-quartered and regulated in Switzerland.
Chaucer is confident in the extensive property facultative abilities of the new team to develop a high-quality and successful business in Latin America. In response to that trust, Uwe Fischer reaffirmed their confidence by saying: “As a team, we recognise the importance of being able to offer clients regional service and international underwriting excellence, underpinned by the secure financial strength of Lloyd’s.
“This initiative provides an excellent opportunity for Chaucer to develop our underwriting in Latin America.”
With the opening of this new office in Latin America, Chaucer extends the reach of its international operations.
Insurance Company mentioned:
Chaucer Holdings PLC is a diversified insurance group listed on the London Stock Exchange. Chaucer underwrites business at Lloyd’s, the world’s leading insurance and reinsurance market. Chaucer deploys specialist underwriters in over 28 major insurance and reinsurance classes, balancing global marine, energy, non-marine and aviation with UK motor and nuclear. Head-quartered in London, Chaucer has international operations in Copenhagen, Houston and Singapore.