Feb
26
Max Bupa gets Certificate of Registration from IRDA
Filed Under BUPA, Health Insurance, Medical Insurance | 4 Comments
Max Bupa Health Insurance, the general insurance joint venture between Max India and Bupa has been given its Certificate of Registration or R3 form, by India’s Insurance Regulatory and Development Authority (IRDA). This brings the total number of general insurers registered in India to 23.
The company plans to open in six main cities in India, namely Delhi, Mumbai, Hyderabad, Chennai, Pune and Bangalore in 2010, with further plans to be operating in 20 cities within three years time. While Max Bupa does not currently have precise targets regarding market share, number of new policies or gross written premiums, they plan to use market feedback and in depth research to help them expand to meet their geographical goals.
Damien Marmion, the chief executive of Max Bupa Health Insurance, said that since it is fairly easy for competitors to offer health insurance products with similar features, the company plans on individuate itself through its customer service. Max Bupa intends to forgo using third party administers in order to keep direct control of the customer experience and ensure the best possible service.
There is still some uncertainty as to what exactly Max Bupa’s health insurance products will initially look like. Chief executive Marmion said in one interview on the 11th of February, 2010 that “Our products will be all across the spectrum, with premiums ranging from Rs 3,000 to more than Rs 50,000. We also have some rural insurance obligations[,]” while in a later interview on the 18th of February he said that “We will initially offer one product with a number of variants”. Although Mr. Marmion said that their research has shown the cost of hospitalization to be one of the top concerns among consumers, so their early focus would be on providing hospitalization plans.
Companies Mentioned:
Max India:
Incorporated in 1988, Max India Limited is a holding company with business interests working in the healthcare and services industries. Their wide range of health related interests include a joint venture life insurance company, Max New York Life, a healthcare services company, Max Healthcare, and a clinical services company, Max Neeman Medical International. The Max India Group reported US$ 860 million in revenues for 2007-2008 and will soon add Max Bupa to their list of businesses.
Bupa:
BUPA is an international health insurance company that provides health insurance for individuals and companies all over the world. This company has offices on three continents and over 7 million customers’ world wide. 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.
Feb
26
Agreement reached between Implantable Provider Group and Blue Cross and Blue Shield of Florida
Filed Under Healthcare, Insurance Company, USA Health Insurance | 2 Comments
An agreement between Implantable Provider Group (IPG) and Blue Cross and Blue Shield of Florida, Inc. (BCBSF) has been reached allowing IPG to serve as the designated implantable device management vendor for the extensive provider network of BCBSF. IPG is one of the world’s leading providers of implanted surgical devices (such as pacemakers).
IPG streamlines the management and delivery of implantable medical devices by working directly with commercial insurance payers, clinical providers and facilities, and medical device manufacturers through its Implantable Device Management (IDM) solution. The IDM solution eliminates the complexity and the financial risks associated with the billing and reimbursement processes for providers, while maintaining patient access to innovative medical therapies that use life-saving and life-enhancing medical devices.
From now on, services such as device coordination, billing, replacement, tracking and other will be handled by IPG to the state-wide ambulatory surgery centre network of Blue Cross Blue Shield of Florida, which has over 4 million health insurance policyholders.
Companies Mentioned
Implantable Provider Group (IPG) works with commercial payors to manage all aspects of high-cost implantable medical devices. Founded in 2004, IPG primarily focuses on large, fast-growth device intensive markets, such as cardiology, neurology, orthopaedic and spine implants. The company’s Implantable Device Management SM solution simplifies the complex procurement, contracting and billing associated with these devices, thereby streamlining the process and normalizing costs for all parties, while also delivering many valuable ancillary capabilities. Implantable Device Management also offers benefits for health care providers and manufacturers.
Blue Cross and Blue Shield of Florida is the oldest and largest health plan provider in the state of Florida. The Blue Cross and Blue Shield system of plans consists of 39 independent and locally operated Blue plans with a total national enrolment of more than 100 million at year-end 2008, which equals one in three Americans. Blue Plans have experienced 14 consecutive years of positive enrolment.
Feb
25
4th Quarter Results show Allianz profits up as Aetna’s slide
Filed Under Aetna, Allianz | Leave a Comment
Results are out for the financial period ending December 31 2009, and insurers Allianz and Aetna have had different fortunes.
After reporting their results for 2009 Allianz, based in Munich, Germany, posted a 4th Quarter net income of 1.09 billion euros (US$1.47 billion), a well received change over the 145 million euro loss during the same period in 2008. This was helped greatly by Allianz’s Life and Health insurance unit posting a net income of 432 million euros in Q4 2009 after losing 505 million euros in Q4 2008.
Allianz’s net income for the 2009 fiscal year was 4.74 billion euros, up 13.2% over 2008, prompting Allianz to raise their dividend from 3.50 to 4.10 euros per share as they seek to attract new investors.
Hartford, Connecticut-based Aetna on the other hand reported a Q4 2009 net income of US$165.9 million, down about 14.8% from US$194.7 million during the same quarter in 2008. Despite an increase in yearly revenue from US$30.95 billion in 2008 to US$34.76 billion in 2009, Aetna’s year long earnings are down with net income for 2009 at US$1.276 billion, approximately a 7.8% drop from 2008’s US$1.384 billion.
Aetna’s operating earnings per share fell from US$0.96 in 2008 to US$0.40, which the group said was due to lower operating earnings in the Group insurance business, a lower Commercial underwriting margin due to increase costs, and an increase in pension expenses as well.
Companies Mentioned:
Founded in 1853, Aetna is one of the leading health insurance companies in the USA. Continually working on innovating and improving healthcare and services for their policyholders, Aetna is committed to providing comprehensive insurance coverage for American citizens.
Founded in 1890 as an accident and transport insurer, Allianz has grown into an international group doing business in asset management, banking and insurance, including their international health insurance brand, Allianz Worlwide Care. Allianz Group has over 75 million customers in approximately 70 countries around the world.
Feb
24
American International Group May be on the Road to Recovery
Filed Under AIG, Income Protection, Insurance Company, Life Insurance | 3 Comments
American International Group may be on the road to recovery 17 months after the company received a US$ 182.3 Billion bailout from the American government at the peak of the global financial crisis of 2008/2009.
AIG, whose failure threatened to collapse the USA’s economy, has improved its means to repay the bailout which it received through increased sales in the company’s property-casualty business. Property-Casualty contributed to a third of AIG’s revenue in the three quarters following the opening shots of the great recession. In conjunction with rising Life and Retirement product sales, the mainstay of AIG’s offerings, in the third quarter of 2009 the company looks well placed to pull out of what many industry analysts are referring to as a “death spiral”.
Managing Director of Nomura Securities International, David Havens, said “There are clear signs that AIG has pulled out of what could have been a death spiral.” Nomura Securities was a key player during the Global Financial Crisis, taking over the European and Asian business of defunct banking giant Lehman Brothers.
Industry observers are forecasting a positive outlook for AIG, and point to recently released third quarter results that see the company moving more in line with industry averages, rather than continuing poor performance. During the fourth quarter of 2008, the first full reporting period after they received their bailout, AIG posted Property-Casualty premiums sales of US$ 7.1 billion. This figure has risen during 2009 with the property-casualty arm posting sales of US$ 7.7 billion in the first quarter, US$ 7.9 billion in the second quarter, and US$ 8.1 billion in the third.
Life insurance however, may be slower to recover. During the fourth quarter of 2008, AIG posted Life insurance revenues of US$ 15.2 billion. The first quarter of 2009 saw British clients abandon the firm due to a perceived lack of confidence, and consequently saw Life insurance sales drop to US$ 14.5 billion. The life insurance arm of AIG continued to struggle in the second quarter of 2009 with sales down to US$ 13 billion, but a recent reversal of the downward trend, and an increase in Life insurance sales, up to US$13.7 billion in the third quarter, means that stability may be returning to this beleaguered company.
In other AIG news, AIG Star Life Insurance Co. Ltd, a life insurance subsidiary located in Japan, has formed a partnership with Orix Corp. to sell annuity products. Aiming to enhance AIG Star’s customer base, the two companies will pursue a venture which will see them jointly marketing annuity products to Orix Corp’s existing clients.
Companies Mentioned
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally
A wholly owned subsidiary of Nomura Holdings, Nomura Securities is a finanical services company in addition to being a global investment bank. Based in Tokyo, Nomura Securities has approximately 26,000 staff worldwide.
Feb
23
BUPA Updates Online Intermediary System
Filed Under BUPA, Health Insurance, Insurance Company, Medical Insurance | 2 Comments
In an effort to make things easier for intermediaries selling and Bupa’s individual protection products, Bupa has updated their online trading system.The enhanced system allows intermediaries interact with Bupa’s products within the Bupa Extranet system in more a more in-depth manner, streamlining online administration of policies.
The increased functionality permits intermediaries to customize the product options to better suit their customers. Intermediaries may now also upload multiple product applications at once, make modifications on the policy all the way up until the policy is placed on risk, and set up single or multiple start dates and direct debits for clients.
The director of Bupa Health Assurance, Steve Payne, said that “Intermediary feedback has helped us to design a system which enables them to access our products in a menu-style format making administration simpler, quicker, flexible and more convenient.”
Companies Mentioned:
BUPA is an international health insurance company that provides health insurance for individuals and companies all over the world. This company has offices on three continents and over 7 million customers’ world wide. 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.
Feb
23
U.S Insurers can exploit global opportunities
Filed Under Allianz, BUPA, CIGNA, Insurance Company, USA Health Insurance | 4 Comments
Conning Research and Consulting, a division of Conning & Company, has released a study which finds that insurers operating in the USA’s domestic insurance market should focus their attention overseas if they are to see continuing high rates of growth and profitability.
Conning, a leading provider of insurance industry and asset management research and consulting services, released the study “Global Opportunities for U.S. Health Insurers” to help provide a solid framework for insurance providers to work within when expanding to international markets.
Sherry Manetta, an analyst with the company said, “U.S. health insurers have been successful focusing almost exclusively on the U.S. market up until now… However, the U.S. now accounts for 80 percent of the global health insurance market, while representing just 4.6 percent of the world’s population. Looking forward, both profit pressures at home and higher growth rates overseas will drive increased multinational expansion interest among U.S. health insurers.”
The study comes at a time when increased expansion is at the forefront of many international insurance provider agendas. With companies such as CIGNA, Allianz Worldwide Care, Aetna Global Benefits, and BUPA International all actively moving to consolidate their positions in the growing international marketplace, the study by Conning is a timely notification for many American insurance companies looking to revitalize their services.
Regarding the study, Stephen Christiansen said “In reviewing growth opportunities in health insurance beyond the U.S. market, Asia and Europe represent key near-term opportunities.” The Conning Director of Research went on to further elaborate saying that “U.S. insurers have built and are managing the world’s most complex managed health care system. With this infrastructure and expertise, U.S. insurers have the potential to emerge as front-runners of a vast global managed health care system should they decide to enter the competition already underway with Western European and Canadian multinational insurers.”
Companies Mentioned
Conning Research and Consulting
A provider of asset management research and consulting services to the insurance industry, Conning Research and Consulting has over 50 years experience in providing far reaching analysis to key industry decision makers.
BUPA is an international health insurance company that provides health insurance for individuals and companies all over the world. This company has offices on three continents and over 7 million customers’ world wide. 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.
For more than 125 years, CIGNA has been helping people lead healthier, more secure lives. The company provides health care and related benefits offered through the workplace. Key product lines include health care products and services (medical, pharmacy, behavioral health, clinical information management, dental and vision benefits, and case and disease management); and group disability, life and accident insurance. In addition, CIGNA also provides life, accident, health and expatriate employee benefits insurance coverage in selected international markets, primarily in Asia and Europe.
Allianz Worldwide Care was established in 2000 as the international medical insurance specialist of the Allianz Group. Allianz Worldwide Care is dedicated to providing superior health insurance policies to expatriates and their families all over the world. Headquartered in Ireland, this insurer has regional offices in Africa, the Middle East, Europe, and Asia, serving to provide their clients with the most comprehensive support network available.
Feb
23
British MP’s report says Homeopathy should not be funded by NHS
Filed Under AXA PPP, BUPA, Health Insurance, Medical Insurance, United Kingdom | Leave a Comment
British parliament’s science and technology committee, headed up by chairman Phil Willis, has finished a new report on National Health Service funding for homeopathic treatments and come to the conclusion that the funding should stop.
The committee of MPs said that since there is no evidence that homeopathic treatments work better than a placebo, the NHS should cease providing funds for homeopathic hospitals and that doctors in the NHS system should not refer patients to homeopaths.
The chairman of the committee held that prescribing placebos like homeopathy in the NHS is ethically dubious and may destabilize relationships between doctors and patients.
The committee also forwarded the idea that the Medicines and Healthcare products Regulatory Agency (MHRA) should bar homeopathic treatments from displaying medical claims on their labels. The report came out against further funding for homeopathic research as well.
On top of the NHS currently providing funds for homeopathic treatments, certain insurance plans from AXA PPP and Bupa as well as other private medical insurers and cash plan providers will cover homeopathy, although the extent of coverage may vary between insurance plans as well as on a case by case basis.
Companies Mentioned:
Originally PPP Insurance, it became part of the Global AXA Group in 1999 and changed its name to AXA PPP in 2002. AXA PPP is now an international health insurance company with over 2 million customers around the world.
BUPA is an international health insurance company that provides health insurance for individuals and companies all over the world. This company has offices on three continents and over 7 million customers’ world wide. 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.
Feb
22
Healthcare Finance Reform in Hong Kong
Filed Under China, Health Insurance, Healthcare, Hong Kong, Medical Insurance | 4 Comments
The much-anticipated public consultation on “Healthcare Finance Reform” to be launched on the second half of this year is starting to generate attention towards some of the main issues to be addressed, among which is the possibility of the Hong Kong Government implementing a company to provide medical insurance for cases where private insurers may not be able to provide a “reasonable cover” to policyholders.
Such a bold initiative is fueled by what the government perceives as the “low coverage” currently being provided by private insurance companies, which results in the insured person not being able to afford treatment in private hospitals. As a result of this, patients end up receiving the treatment they need in public sector hospitals.
Given that the products offered by some insurance companies exclude pre-existing and hereditary conditions, as well as mental and sexually transmitted diseases, an insured person in need of treatment has at the moment no other option but to seek treatment in public hospitals. This again, is perceived by the government as another way how the insurance companies are encouraging their policyholders to rely on the public healthcare sector.
The additional stress put on the public hospitals by patients already insured by private insurers is seen by the government as unfair. The insurance companies profit from the sale of insurance products that the policyholders cannot fully benefit from, ultimately transferring the cost to taxpayers.
One solution suggested by the government is that the insurance sector implements a compensation fund for the reimbursement of high-cost claims, to drive away potential liquidity problems from insurers.
Recently, the Hong Kong Federation of Insurers has agreed in principle to extend cover of pre-existing conditions and mental diseases. Further discussions with the government will be arranged to address the proposed standardisation of conditions and charges, counter-proposing also that the government subsidises directly these claims or sets a moratorium for claimants to receive full compensation after a pre-determined period.
Hong Kong residents in general will no doubt look forward to an improved healthcare system once the consensus on its reform is reached, and implementation of the changes needed are carried out by both government and insurance companies.
Additional Reference:
In order to put in perspective the above, you may refer to the articles: “Hong Kong Healthcare Reform; a worldwide issue” and “Hong Kong Healthcare Reform Stuck in Debate“.
Feb
22
Australian Govt. Debates Rebate for Private Health Insurance
Filed Under Health Insurance, Medical Insurance | 3 Comments
The federal government is trying to rally support behind a bill in the Australian Senate which would impact private medical insurance rebates for some Australians.
The proposal seeks to rule out a 30% rebate on private medical insurance policies for any individuals earning over AUD$75,000 and families earning over AUD$150,000 annually. The Treasurer for the Labor government is saying this measure could save AUD$2 billion (US$1.78 billion) in the next four years and AUD$9 billion (US$8.1 billion) in the next decade.
The opposition is, of course, opposed; fearing that any costs saved by adding a means test to the rebate would be passed onto consumers either through higher private insurance premiums or longer public hospital waiting lists if people drop their private health insurance cover.
The Treasurer has said that the Medicare Levy Surcharge will serve as an incentive for people with high incomes to not drop their private health insurance. The Medicare Levy Surcharge adds an additional tax of 1.0% of taxable income for individuals earning AUD$73,000 and families earning AUD$146,000 who do not have private health insurance coverage. This is on top of the Medicare Levy which is 1.5% of taxable income, payable by all resident taxpayers.
Feb
18
CIGNA Enlarges Providers Base in Russia
Filed Under CIGNA, Healthcare, International Healthcare | 3 Comments
As part of CIGNA International’s continued efforts to expand its international business base, it now possesses a network of 4,000 hospitals and clinics in Russia, as per announcement released early this week by the company’s marketing arm. Prior to this announcement, CIGNA Corp. counted with just 18 Russian healthcare providers.
This enlarged base of providers taps into a dense cluster of medical professionals residing in Moscow and St. Petersburg, where many expatriates work.
CIGNA International Expatriate Benefits is responsible for managing this network, which has a membership of about 300,000 expatriates, mostly non-Americans. In an effort to provide a wider range of services and quality healthcare to expats throughout Russia, CIGNA has taken steps to ensure that it is able to provide continuing high levels of service to its policyholders.
As part of its international push, CIGNA is expected to announce further expansions in the near future.
Insurance Company mentioned:
For more than 125 years, CIGNA has been helping people lead healthier, more secure lives. The company provides health care and related benefits offered through the workplace. Key product lines include health care products and services (medical, pharmacy, behavioural health, clinical information management, dental and vision benefits, and case and disease management); and group disability, life and accident insurance. In addition, CIGNA also provides life, accident, health and expatriate employee benefits insurance coverage in selected international markets, primarily in Asia and Europe.
Feb
17
Expats in Japan to comply with updated visa regulation
Filed Under Aetna, International Healthcare | 1 Comment
As per information contained in a recent release by the Marketing arm of Aetna Global Benefits (AGB) about Regulatory News in Japan, an existing regulation will be given new emphasis by the Japanese Immigration Bureau in regards to resident visa applications by foreign nationals living in Japan.
The existing requirement for Expatriates living in Japan to provide proof of current or future enrollment in the country’s national health insurance system to renew or apply for a visa with validity longer than one year will become compulsory starting from the 1st of April, 2010.
The Japanese Immigration Bureau made public their “Amended Guidelines for Change of Qualification of Foreign Residents and the Renewal of Visas”. According to these guidelines, it will be compulsory for Expats living in Japan to show proof of insurance in Japan’s national health system in order to apply for or renew their visa.
Foreign nationals can continue enjoying the coverage provided by international private health insurance companies, such as the overseas coverage offered by AGB. This coverage intends to supplement, instead of being a replacement for the coverage offered by the national health insurance system.
Insurance Company mentioned:
Aetna Global Benefits (AGB), the international segment of Aetna Inc., is a provider of comprehensive health benefits solutions and health management services for multinational employers, high-net-worth individuals and government entities. AGB’s health benefits offerings include medical, dental, vision, life, disability and emergency assistance for employees and high-net-worth individuals who live, work or travel internationally. With the acquisition of Goodhealth Worldwide, AGB is one of the industry’s largest and most prominent U.S.-based international benefits providers, supporting approximately 400,000 members worldwide from offices throughout the U.S., Europe, Asia and the Middle East.
Feb
12
CIGNA acquires Kronos Optimal Health Company
Filed Under CIGNA, Healthcare, Insurance Company, International Healthcare | 8 Comments
Cigna International Insurance has acquired Kronos Optimal Health Company of Phoenix, Arizona USA as part of an effort to expand their on-site health-management programmes for companies and their employees.
Through this acquisition Cigna will be able to offer to its large and medium-sized clients services such as biometric screening, flu shots, health-improvement programmes and other services.
Cigna had an existing relationship with Kronos, the latter being its provider of biometric screening and other services. The variety of health education and health-management programmes Kronos offered to businesses were of particular interest to Cigna, and gaining access to Kronos’ network of about 13,000 health coaches, health educators and screeners all over the USA.
Kronos’ local staff of 25 employees will continue working for Cigna and only its highest-ranking employee will leave the company and become a consultant to Cigna.
There were no details on the financial terms of the acquisition.
Cigna continues expanding its base of on-site clinics for large and medium-size companies. With this deal Cigna also aims to efficiently offer to smaller companies on-site healthcare and health education.
Insurance Companies Mentioned:
For more than 125 years, CIGNA has been helping people lead healthier, more secure lives. The company provides health care and related benefits offered through the workplace. Key product lines include health care products and services (medical, pharmacy, behavioural health, clinical information management, dental and vision benefits, and case and disease management); and group disability, life and accident insurance. In addition, CIGNA also provides life, accident, health and expatriate employee benefits insurance coverage in selected international markets, primarily in Asia and Europe.
Kronos Optimal Health Company provides optimal health products and services for consumers, employer groups and healthcare providers. Its mission is to help people live as healthy as possible throughout their lives. Kronos Optimal Health Company employs more than 50 professionals in the fields of science, medicine, technology, pharmacology, customer service, sales and marketing.
Feb
11
International Investment Magazine Names BUPA Best Insurer 2009
Filed Under BUPA, Health Insurance, Healthcare | 3 Comments
International Investment Magazine recently conducted a poll of its readers to determine which International Insurance Company is able to provide the highest levels of service and comprehensive coverage to expatriates living around the globe. The results are in, and BUPA has been named as the magazine’s “Best International Healthcare Provider” for 2009.
Responding to the award, BUPA Spokesman Tim Slee, the company’s international sales director, said “our customers have the reassurance of knowing that they can be treated in any of our 7,500 participating hospitals and clinics worldwide. Bupa’s doctors and in-house medical teams – unique among private medical insurers – arrange hundreds of emergency evacuations and repatriations each year and offer customers medical advice and guidance, 24 hours a day.”
BUPA is no strangers to awards, the company was named as the “Best International Provider” by Health Insurance Magazine in October 2009; the ninth time that BUPA has received the honor.
The industry recognition for BUPA comes at a time when the company is looking to expand its offerings to international citizens. With the recent deployment of a “worldwide health options” health insurance policy, BUPA has redirected it’s focus towards enabling customers to obtain the coverage levels which are specific to their needs.
The Worldwide Health Options plan has been called “innovative” by industry insiders.
Insurance Companies Mentioned:
BUPA is an international health insurance company that provides health insurance for individuals and companies all over the world. This company has offices on three continents and over 7 million customers’ world wide. 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.
Feb
10
CIGNA International to offer individual Private Medical Insurance worldwide.
Filed Under BUPA, CIGNA, Expat Insurance, Health Insurance, Insurance Company, Medical Insurance | 4 Comments
CIGNA International has announced an initiative to develop and distribute individual private medical insurance on the international stage.
Currently, CIGNA only offers international private medical insurance to corporations and group customers. The new business plan will open up new markets of potential clients as they aim to sell private medical insurance to individual citizens in other nations as well as individual expatriates and high-net worth clients.
CIGNA has hired Keith Biddlestone away from Bupa International to kick start and lead the new initiative, effective February 1st, 2010. Biddlestone has a strong background in private medical insurance, with 25 years of work experience in Bupa; most notably as the managing director of the U.K. based global health care business, where his responsibility included the operations of Bupa’s multi-distribution program for selling individual private medical insurance.
Companies Mentioned:
For more than 125 years, CIGNA has been helping people lead healthier, more secure lives. The company provides health care and related benefits offered through the workplace. Key product lines include health care products and services (medical, pharmacy, behavioral health, clinical information management, dental and vision benefits, and case and disease management); and group disability, life and accident insurance. In addition, CIGNA also provides life, accident, health and expatriate employee benefits insurance coverage in selected international markets, primarily in Asia and Europe.
Since being started in 1947, the British United Provident Association, or Bupa, has grown to an international company offering health insurance, health and care services to over 10 million customers in 190 countries around the world.
Feb
10
Hong Kong Healthcare Reform Stuck in Debate
Filed Under Health Insurance, Healthcare, Hong Kong, Insurance Company | 11 Comments
Amidst the global debate on healthcare reform, Hong Kong has waded into the fray with a proposed “voluntary medical insurance” scheme aimed at alleviating the massive financial burdens faced by the city’s public healthcare network. The issue was first raised in late 2008, following in the wake of the Global Financial Crisis, and has now reached the penultimate stage of industry level discussion before a territory-wide consultation process can debate the measure later this year.
In talks with various Insurance industry and Healthcare experts, the government hopes that a voluntary insurance scheme would see at least 500,000 individuals take up the coverage, and massively reduce the strain currently faced by an over-burdened public healthcare system. Government representatives have stated that the aim of the scheme would be to provide a wider range of quality healthcare options to patients with the wherewithal to afford private insurance, and will help to level the playing field in the health insurance market by setting solid standards for private medical services and medical insurance.
The Hong Kong insurance industry, lead by the Hong Kong Federation of Insurers, has agreed, in principle, to applying a “basic” level of cover to the scheme. This basic coverage would remove existing exclusions on the coverage of mental illnesses and congenital defects, while making all plan premiums age specific, rather than experience rated.
The basic package proposed by the insurance industry would see policyholders covered for in-patient only healthcare in Hong Kong. Coverage can be then extended on an as-needed basis to include coverage options with more benefits – such as global portability, and emergency medical evacuation. Extended benefits under the current proposals would see premiums increased on a pro-rated basis.
However, recent developments over the issue of Pre-existing condition coverage may have stalled talks and delayed the upcoming consultation process.
One area where the insurance industry has balked at government demands is with regards to the coverage of pre-existing conditions. Insurance representatives have stated that if pre-existing conditions are to be covered under the scheme, those suffering from existing illnesses should pay higher premiums than those without, citing the fact that the scheme is “voluntary” in nature.
In response, some healthcare officials have raised the proposal that it may be possible for the government to subsidize the health insurance premiums of those individuals who do have pre-existing conditions, as a way to offset the higher than normal costs. Observers have suggested that this is no different from a publically funded healthcare system, and have emphasized the issue that the proposal is for “voluntary” private medical insurance, and is not an extension of the universal healthcare already in place for Hong Kong residents.
Executive Director of the Hong Kong Federation of Insurers, Peter Tam Chung-Ho, stated that he believed people with pre-existing conditions should have higher premiums under a community rated, or shared risk, scheme. “… Otherwise there will be a downward spiral effect with healthy people having to share the high premiums, and the plan will become unpopular and, at the end of the day, unsustainable,” he said.
Of the 7 million people living in Hong Kong, 3.2 million are covered by some form of medical insurance. Approximately 1 million people own an individual health insurance policy, while the remaining 2.2 million are covered by a corporate health insurance scheme; the remainder of the populace, an estimated 3.8 million people, has access to the public healthcare system which is government funded and low in cost of services.
With HK$ 50 Billion (US$ 6.41 Billion) in proposed start-up funds, the Voluntary Medical Insurance scheme aims to move people away from the public system towards highly competitive private medical services. Government representatives have stated that the start-up funds should be used to include as many people as possible in the scheme in order to capitalize on the spread of risk throughout the populace.
The proposed Scheme would only impact health insurance policies administered in Hong Kong; international health insurance plans administered offshore will remain unaffected by any potential legislative reform. Companies providing international health insurance policies will typically deal with pre-existing conditions in one of three ways; exclusion, moratorium, or coverage with a premium loading.
Feb
9
Allianz Buys Up Remaining Stake in Allianz Seguros from Itaú Unibanco
Filed Under Allianz, Insurance Company | 1 Comment
This January, Allianz cemented its control of Brazilian subsidiary Allianz Seguros after it purchased the remaining 14% of the subsidiary’s shares from Itaú Unibanco.
Allianz Seguros is one of the top 7 insurers participating in Brazil’s property and casualty insurance markets with a market share of 5.6%. The subsidiary reported 1.4 billion reais (about 511 million euros) in Gross Written Premiums between January and September 2009, a 26.5% increase over the same time period of the previous year. The deal to buy the remaining shares in Allianz Seguros was closed on January 14, 2010 and has now been submitted for approval by local regulators.
The now total control of the subsidiary comes at a time when Allianz Group sees great growth potential in the future for Brazil, with Allianz Group economists predicting 5% growth in the nation’s GDP. The economists firmly believe that both the FIFA World Cup in 2014 and the Olympic Games in 2016, along with all the infrastructure projects necessary to make them happen, will further increase development in the country.
Companies Mentioned:
Founded in 1890 as an accident and transport insurer, Allianz has grown into an international insurer with over 75 million customers in approximately 70 countries.
Itaú Unibanco:
Established on November 3, 2008 when Itaú and Unibanco agreed to merge their financial operations. Headquartered in São Paolo, Brazil Itaú Unibanco is the Largest financial conglomerate in the southern hemisphere and is the 10th largest bank in the world by market value.
Feb
9
Spanish Doctors Call for Reevaluation of EHIC Scheme
Filed Under Expat Insurance, International Healthcare, Medical Insurance, Spain, Switzerland, United Kingdom | 7 Comments
Politicians and Doctors in Spain have recently joined forces to speak out against certain British ‘health tourists’ who are receiving free-of-charge medical treatment which is ultimately being paid for by taxpayers.
The SiMAP Union, representing public health doctors in Spain, criticized travelers holding the European Health Insurance Card (EHIC) for misusing the provision of emergency care and treatment destined for troubled holidaymakers. This criticism is not directed to expats with rightful residency who pay taxes.
Out of the thousands of British expats and tourists alternating residence between UK and Spain there is a percentage who time their visits to coincide with their needs for medical treatment. An approximate estimate by SiMAP puts this figure at 20 percent of all hospital admissions in Alicante, a favoured tourist destination.
Health professionals for years have kept silent about what politicians labeled as “freeloading” by these expats, and it’s possible that this rare support is instigated by the Doctors’ first-hand perception of the issues; issues which include ‘medical tourists’ jumping queues, draining the Spanish healthcare system of their limited resources and depriving local people of medical attention they are rightfully entitled to receive.
One point of contention is the definition of ‘emergency treatment’ which has meant that in most instances Doctors do not question the alleged illnesses claimed by these foreign patients.
Addressing the above issue from a different angle, UK-based International healthcare and insurance firm PMI Global recently found that up to 20 per cent of companies are not procuring the correct health insurance for their expat employees in long-term foreign assignments.
In a report compiled by PMI Global, it was also revealed that up to 48 percent of companies didn’t carry the appropriate health assessments for the destinations their expat employees are sent to, and almost 50 percent of the companies neglect organizing the necessary vaccinations. Other problems identified include the level of access to psychological assistance and proper advice on where to receive medical attention.
According to comments by the operations director for PMI Global, too many employers are relying on the European Health Insurance Card (EHIC) in lieu of a proper international health insurance cover to ensure the medical attention their staff may require whilst on overseas assignments.
“While the EHIC entitles any resident in the UK to receive emergency healthcare treatment while traveling in the European Economic Area (EEA) and Switzerland, restrictions mean it isn’t a substitute for standalone international health insurance,” Rachael Floyd, operations director for PMI Global stated.
Given the looming healthcare budget shrinkage for both Spain’s SiMAP and the UK’s NHS, a possible target for cost-cutting measures would be the resources currently allocated for non-essential treatments and such action could potentially solve the perceived ‘medical care freeloading’ problem.
Insurance company and union mentioned:
PMI Global is a pioneering service offering an integrated package of insurance and healthcare support for employees abroad. The service is operated by PMI Health Group, the UK’s largest independent specialist provider of employee healthcare and insurance services.
SiMAP (Spanish)
SiMAP is a union of doctors in Valencia working in the public healthcare sector, covering the 3 provinces in the community. With essential presence in the Health Sector Roundtable, without favouritisms, to achieve greater quality of care and decent working conditions.
Feb
8
Insurance Startups in China and India
Filed Under BUPA, China, China insurance, Health Insurance, Insurance Company | 10 Comments
Two new insurance companies are working their way through regulatory boards in developing economies as of today, February 8, 2010. The India-based Max Bupa Joint venture is part way through the Indian regulatory framework, while further east, the China Insurance Regulatory Commission gave the go-ahead for the establishment of Anbang Life Insurance Co. Ltd.
The independent joint venture between Max India and Bupa International, dubbed Max Bupa Health Insurance, is half way through the regulatory barriers and expecting get full approval in order to start its operations in March. The Indian insurance regulator, IRDA, has three stages of approval: the first being R1, where the promoters are evaluated by the regulators; R2 is the stage at which the proposed business model is evaluated and R3 is where the formation of the country is approved.
The joint venture will be focused on providing a range of health insurance products targeted at both individual consumers and business customers. The starting capital of the JV is £12 million, and will see Max India control 74% with the Bupa Group taking 26%, which is the maximum amount permitted under India’s laws covering foreign investment in local companies.
The establishment of Anbang Life Insurance on the other hand, has already been approved by the China Insurance Regulatory Commission (CIRC); it has registered capital of 500 million yuan. The regulator confirms that Anbang Life has five shareholders: Anbang Property and Casualty Insurance Co., Ltd.; a Zhejian-based motor sales company; Liantong Rental Group, a motor rental company; and two investment companies. Anbang Life Insurance will focus on the provision of domestic life insurance policies in the Chinese market.
Companies Mentioned:
Max India:
Incorporated in 1988, Max India Limited is a holding company with business interests working in the healthcare and services industries. Their wide range of health related interests include a joint venture life insurance company, Max New York Life, a healthcare services company, Max Healthcare, and a clinical services company, Max Neeman Medical International. The Max India Group reported US$ 860 million in revenues for 2007-2008 and will soon add Max Bupa to their list of businesses.
Since being started in 1947, The British United Provident Association, or Bupa, has grown to an international company offering health insurance, health and care services to over 10 million customers in 190 countries around the world.
Anbang Property and Casualty:
Founded in 2004, Anbang Property and Casualty Co. Ltd. sells accident injury, short-term health and property/casualty insurance in 37 provincial branches throughout China and more than 300 sub-branches. The company has registered capital of 5.1 billion yuan and its shareholders include Shanghai-based SAIC Motor Corp. and Sinopec Corp.
Feb
8
Aetna Global Benefits Targets Middle East and Africa Wellness
Filed Under Aetna, Africa, Insurance Company, International Healthcare, Middle East, UAE Insurance | 26 Comments
In an effort to provide more comprehensive levels of coverage and support to policyholders located in Africa and the Middle East, Aetna, a leading international health insurance company, today announced that it would be launching its Online Wellness Center to support plan members in the region.
Aetna Global Benefits, the international arm of the Aetna insurance company, created its Online Wellness Center to help combat some of the more serious health risks throughout the Middle East and Africa. With a higher preponderance to risk of coronary artery disease, cancer, and serious heart conditions, expatriates and local nationals throughout these regions may often be unaware of the serious health risks posed by everyday life. Aetna has designed their online tool with the aim of educating and informing their policyholders, as well as giving them the resources which they need to find adequate and comprehensive care in the event of a serious illness or untoward accident.
Mark Jardin, the Managing Director for Aetna Global Benefits in Africa and the Middle East stated that the company wants “to engage, educate and motivate members through the AGB Wellness Centre.” Mark was appointed MD of the company’s Africa and Middle East business in May 2009.
One of the primary reasons for the deployment of Aetna’s Online Wellness Center is the preponderance of Cancer throughout the region. Currently, cancer is the second leading cause of mortality worldwide, and responsible for a third of deaths in the United Arab Emirates. Aetna’s Online Wellness Center now gives policyholders in the Middle East and Africa the ability to actively manage their healthcare in light of worsening health trends; something which Aetna hopes will promote healthy lifestyles and living throughout the region.
Insurance Companies Mentioned
Founded in 1853, Aetna is one of the leading health insurance companies in the USA. Continually working on innovating and improving healthcare and services for their policyholders, Aetna is committed to providing comprehensive insurance coverage for American citizens.
Aetna Global Benefits:
The international health insurance arm of Aetna, AGB is able to cater to the needs of expatriates located around the globe. With innovative policies, and dedication to service, Aetna Global Benefits exemplifies the commitment to the customer shown by their parent company.
Feb
5
SWICA and DKV Globality in new partnership
Filed Under DKV, Expat Insurance, Health Insurance, Healthcare, International Healthcare, Switzerland | 3 Comments
A cooperation agreement has been signed between SWICA and DKV Globality. As one of the biggest health and accident insurance companies in Switzerland, SWICA aims to jointly market with DKV Globality the international health insurance cover Globality CoGenio in the Swiss market, as well as providing a local continuation of insurance option in Switzerland. DKV Globality is a leading international health insurer with a special focus on expatriates. This joint approach closes a gap in corporate health and accident plans for global companies.
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More often than not, the staff of international companies and organizations on temporary overseas assignments have to fend for themselves or are inadequately insured when falling ill or suffering an accident. Another concern is whether they can resume the same level of cover provided by their plan upon their return to Switzerland. The partnership between SWICA and DKV Globality aims to eliminate the risk to expatriates when overseas.
Corporate clients benefit from the cooperation since it allows policyholders to switch from SWICA’s national inpatient and outpatient private health insurance solutions to DKV Globality’s international expat solutions, without the need for medical underwriting.
Globality CoGenio is an integrated, worldwide insurance solution for corporate clients in the Swiss market. This insurance solution offers the best of both worlds, since it has a wide range of assistance services and other benefits in addition to comprehensive healthcare services, ensuring comprehensive protection whilst maintaining individual local support.
Furthermore, this cooperation meets the needs of international companies by providing even wider cover. Swiss companies with international operations can now be offered by SWICA the market-leading DKV Globality products, supplementing its existing product range, whilst corporate clients in Switzerland of DKV Globality can enjoy the continuation of insurance option for staff returning to Switzerland.
A win-win situation for both companies and their clients.
Insurance companies mentioned:
SWICA
SWICA is one of the largest health and accident insurance companies in Switzerland, with a high-quality range of products and services comprising health, accident and daily allowance insurance for individual and corporate clients. Over a million people and more than 22,000 companies rely on premier service, financial security and competent assistance in the event of illness or accident. With its decentralised organisation, SWICA serves clients at over 50 locations in Switzerland.
DKV Globality
DKV Globality is a leading international health insurer with a special focus on expatriates, i.e. people working or studying abroad. Global companies and their expatriate staff as well as individuals and their families place their trust in DKV Globality’s expertise. The company stands for more than 80 years’ experience in health insurance and the proven competence of an international network of assistance and service partners. It is a member of Munich Health with more than 5,000 experts at 26 locations worldwide, providing its clients and partners around the world with innovative healthcare solutions. DKV Globality is a subsidiary of Munich Re, offering the financial strength and security of one of the world’s leading (re)insurers.
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