Mar
31
Hong Kong and Thai Firms jointly bid to build New Private Hospital
Filed Under Healthcare, Hong Kong, International Healthcare | 2 Comments
Hong Kong-based Asia Financial Holdings and Bangkok-based Bumrungrad International, a world-renowned Thai company, recently submitted to the Hong Kong Food and Health Bureau a bid to build a US$385 million (HK$3 billion) 350-bed private hospital at Wong Chuk Hang in Aberdeen, a district located in the southern part of Hong Kong Island.
During 2009 the Bumrungrad Hospital in Bangkok, one of the largest medical tourism facilities in the world, treated over 1 million patients. Bumrungrad International also owns, operates and manages hospitals and healthcare facilities in seven other countries in Asia and the Middle East.
The joint venture envisions to create an integrated hospital offering comprehensive services, expanding its capacity by 150 extra beds in a second phase, based on demand from the public and availability of sufficient medical personnel.
Opening of the first phase of the hospital would be timed to coincide with the completion of the Mass Transit Railway (MTR) South Island Line.
It is now up to the government of Hong Kong to reveal a favourable and attractive land premium rate, which the initial US$385 million (HK$3 billion) bid hasn’t factored-in yet, for the project to go ahead.
Companies mentioned:
Asia Financial Holdings Ltd.. The Group’s principal activity is providing underwriting of general and life insurance. Other activities include securities trading and holding, mortgage loan financing, providing health care services and investment holding. Operations are carried out in Hong Kong, Liberia and British Virgin Islands.
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-ageing and functional medicine.
Mar
30
ASSOCHAM projects US$22.2 billion General Insurance Premiums in 5 Years
Filed Under Auto Insurance, Insurance Company | 7 Comments
Citing the massive increase in awareness to insure themselves against possible causalities, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has projected that premium from General Insurance will rise to levels of close to US$22.2 billion (EUR 16.4 billion) in the next 5 years.
A recently released assessment by ASSOCHAM estimates the current insurance premium collection to be close to US$77.8 million (EUR 57.6 million), with a high likelihood in future that it will gain a speedier pace.
The year-on-year annual growth of general insurance premiums between 2000 and 2009 is estimated to have been in excess of 15%. The gross premiums of general insurance in 2000 were estimated to have reached almost US$22.2 million (EUR 16.4 million). This amount by 2009 is estimated to have climbed to close to US$77.8 million (EUR 57.6 million) due to increased penetration levels, particularly in large towns, metropolitan areas and other cities.
According to ASSOCHAM, over 60% of the population in India, largely in the rural parts of the country has yet to be tapped by the insurance industry. The social schemes of the government are having the effect of raising levels of awareness and improving the income among a large chunk of the rural population, and this is believed to become one of the driving factors for the growth of insurance premiums up to the projected level of US$22.2 billion (EUR 16.4 billion) by 2015.
The automotive sector is experiencing high growth, together with great improvements in healthcare, both of which factors will substantially open up the potential of health insurance as well.
The market size of general insurance in the United States is currently worth US$488 billion (EUR 361.5 billion), compared to US$10.5 billion (EUR 7.8 billion) of Switzerland, US$74 billion (EUR 54.8 billion) of France, US$77 billion (EUR 57 billion) of Germany, US$70 billion (EUR 51.9 billion) of Japan, US$14.2 billion (EUR 10.5 billion) of Brazil, US$14.1 billion (EUR 10.4 billion) of Russia, US$2.6 billion (EUR 1.9 billion) of Thailand, and US$26.3 billion (EUR 19.5 billion) of China. As per latest estimate, the size of this market in India is US$6.2 billion (EUR 4.6 billion).
The penetration level of general insurance in India is estimated to be 0.60% of its GDP, which compares to a world average of 2.14%. In the United States it is 3.94% of its GDP. While in Switzerland, France, Germany, Japan, Brazil, Russia, Thailand and China, this percentage in relation to their GDP amounts to 2.4%, 2.34%, 1.99%, 1.46%, 1.10%, 1.10%, 1.08%, and 0.81 respectively. India ranks 136th in penetration levels worldwide, compared to rankings 106 of China, 87 of Thailand, 86 of Russia, 85 of Brazil, 61 of Japan, 36 of Germany, 25 of France, 20 of Switzerland and 9 of The United States of America.
The great potential for growth in general insurance premiums in India lays in its rural sector, in which a large number of micro financing institutions will explore possibilities for wider coverage of general insurance, together with the government initiatives on mass insurance, which will also be gradually widen to cover large portions of the countryside for general insurance, including the urban pockets in India.
In a more distant future, non-banking financial companies will also be tied up with the entire banking infrastructure to better utilise the distribution of insurance products.
Mar
29
Aetna Global Benefits enhances links to its International Members using Social Networking Tool
Filed Under Aetna, Healthcare, International Healthcare | 5 Comments
An additional online resource for the more than 400,000-member worldwide base of Aetna Global Benefits (AGB) has been made available for them to easily navigate their benefits and achieve optimal health. The international business segment of Aetna has launched its presence in Facebook with the aim of enhancing the level of service experienced through the Internet.
Initially AGB will focus its efforts on creating an online community comprising of not only its diverse and geographically-dispersed members but prospective individual customers as well. AGB has already been offering members online access to the secure portion of their website.
The Facebook Wall of AGB will include frequently updated information on its international provider community of more than 61,000 health care providers outside of the U.S. and approximately 900,000 in the U.S., answers to frequently-asked benefits questions, news feeds and videos, and health and wellness information and resources provided as an extension of the Aetna Global Health Connections programme.
Existing Facebook members can access the resources described above by becoming fans of “Aetna Global Benefits.”
AGB plans in future to include content specifically targeted to employer customers and brokers.
Insurance Companies mentioned:
Aetna Global Benefits, the international business segment of Aetna, is committed to helping create a stronger, healthier global community by delivering comprehensive health benefits and health management solutions worldwide. AGB’s expatriate business is one of the industry’s largest and most prominent U.S.-based international health benefits providers, supporting more than 400,000 members worldwide. Our expatriate offerings include medical, dental, vision, life, disability and emergency assistance. The organisation’s health management business collaborates with health care systems, government entities and plan sponsors around the world to design and build locally-applied health management solutions to improve health, quality and cost outcomes.
Aetna is a leading global diversified health care benefits company headquartered in the U.S., serving approximately 36.1 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioural health, group life and disability plans, and medical management capabilities and health care management services for Medicaid plans. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labour groups and expatriates.
Mar
26
MetLife planning to Cover the Middle East
Filed Under AIG, Expat Insurance, Insurance Company, Life Insurance, MetLife, Middle East, UAE Insurance | 2 Comments
Following its acquisition of American Life Company (ALICO), MetLife now aims to become a force in the Middle East, which had been missing from its portfolio of 18 countries.
Given that the growth of life insurance sales is happening outside of the US, and ALICO has been in an excellent position to strategically capitalise this segment of the market in Asia, it is only natural for MetLife to take advantage of this opportunity to extend its cover to the Middle East.
Insurers are particularly drawn by the fact that the Middle East is currently under-insured in a severe manner. In developed countries premiums reach about 15 percent of their GDP whilst per-capita premiums in the Gulf account for an average of only 1 per cent of GDP, and it is estimated that insurance premiums grew 28 percent last year.
This calling has brought 58 insurers to the UAE, with approximately half of them being foreign companies. This intense competition has driven down premiums to some of the lowest levels in the world.
Within the particularly undeveloped segment of personal insurance, car insurance and health insurance are the most common products, especially since regulators have started to gradually make them compulsory. Life insurance, the core business of MetLife and ALICO is an even newer concept in this market.
Whilst awaiting regulatory approval for its ALICO purchase, MetLife plans the integration of the two companies and continue watching the markets for opportunities. MetLife hopes to close the deal by 01 November of this year.
Actively present in 55 countries with a 20-million customer base, the presence of ALICO in the Middle East and Japan complements activities of MetLife in China, India and Brazil. MetLife counts with a 70-million customer base.
The success story of ALICO made it one of the crown jewels of AIG, before being bailed out by the US government.
Insurance Companies mentioned:
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Alico provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients.
Mar
25
Leading Chinese Insurers may Turn to Central and Western Regions for Expansion
Filed Under China, China insurance, Health Insurance, Healthcare, Income Protection, Medical Insurance | 6 Comments
Residents in developed cities in Continental China are starting to show less interest in buying insurance products and it is expected that the leading insurance groups will set their sights this year to capitalise in the development of the central and western regions of the country.
The top three Chinese insurance companies in Mainland China, China Life Insurance Co., Ping An Insurance (Group) Co. of China Ltd. and China Pacific Insurance (Group) Co. based in Beijing, Shenzhen and Shanghai respectively, correspondingly reported back in January of this year premium revenues of US$6.13 billion (CNY 41.8 billion), US$3.2 billion (CNY 21.8 billion) and US$2.48 billion (CNY 16.9 billion), recently boosting the interest on their shares from investors at the stock market.
The latest report compiled by HSBC Insurance showed that Chinese consumers are more willing to put their savings into bank accounts, chiefly worried about inflation, regardless of the fact that the Chinese economy actually has made a turnaround since the financial crisis. By so doing, it becomes hard for insurers to see the revenue from premiums increase in cities like Shanghai, Beijing and Guangzhou and that is a good reason why the insurance companies may focus their market development strategies into second-tier cities in central and western China.
The pace of implementation of the medical reform in China may provide a window of opportunity for the commercial insurance companies to adopt the aforementioned strategy, making it a win-win situation for both urban and rural residents.
It remains to be seen whether the lower profits, heavier taxes, and less developed economy in some regions will diminish the enthusiasm of these commercial insurance service providers to offer managed medical insurance services.
Insurance Companies mentioned:
China Life Insurance (Group) Company and its subsidiaries constitute the largest commercial insurance group in Mainland China. It is the only domestic insurance group with an asset exceeding 1 trillion RMB yuan. It is also one of the largest institutional investors in China’s capital market.
Ping An Insurance (Group) Co. of China Ltd.
Ping An Insurance (Group) Company of China, Ltd (“Ping An” or “the Group”) is the first integrated financial services conglomerate in China that blends its core insurance operations into securities brokerage, trust and investment, commercial banking, asset management and corporate pension business to create a highly efficient and diversified business profile. The Group was established in 1988 and headquartered in Shenzhen, Guangdong Province, China.
China Pacific Insurance (Group) Co.
China Pacific Insurance (Group) Co., Ltd. (CPIC) was established on the basis of China Pacific Insurance Co., Ltd., which was founded on May 13, 1991. Headquartered in Shanghai, its registered capital stands at RMB 7.7 billion. The company was listed in Shanghai Stock Exchange on Dec. 25, 2007, with the stock code of 601601 and the stock name of “ China Pacific”. The Company was listed in the Stock Exchange of Hong Kong Limited on Dec. 23, 2009, with the stock code “02601” and the stock name of “CPIC”.
Mar
24
The final US health reform package; what you need to know
Filed Under Expat Insurance, Health Insurance, Insurance Company, Medical Insurance, USA Health Insurance | 7 Comments
On the 23rd of March, 2010, the President of the United States Barack Obama signed the Patient Protection and Affordable Care Act (H.R. 3590) into law. As part of the President’s efforts to reform healthcare in the United States, this bill marks the biggest change to federal healthcare laws in decades. But what does the bill contain and what effects will the new law have on people?
The bill has a number of provisions, most of which are rolled out in two stages. The first stage is to take fairly immediate effect, with the provisions in the bill to start being actioned by September 21, 2010, while the second set of provisions are to come into effect by 2014.
The first phase is mostly comprised of short term fixes in preparation for the second phase. It includes provisions for: closing the ‘donut hole’ in Medicare by providing rebates for prescription drugs; preventing insurance companies from denying coverage or raising premiums for children with pre-existing conditions; removing lifetime payment limits on insurance coverage and restricting annual limits; allowing young adults to stay on their parents plans until the age of 26; and banning insurance companies from the practice of rescission, whereby coverage is denied or removed after you fall sick, except in case of fraud.
Also included in the first batch of provisions are tax credits for small businesses when purchasing cover, as well as the creation of high-risk pools where uninsured adults with pre-existing conditions will be able to find coverage. The provision for high-risk insurance pools is a temporary measure before state insurance exchanges for individuals and small businesses are set up under the second stage of reform. On a lighter note, indoor tanning services using ultraviolet light are subjected to a 10% tax.
The second phase, whose provisions are slated to be in effect by January 1st, 2014, provides a more robust reformation of rules and systems related to insurance and healthcare in the United States. Some of the provisions include: fully prohibiting insurers from discriminating against individual adults with pre-existing conditions; abolishing annual spending limits on insurance plans; and expanding Medicaid to allow anyone earning 133% of the poverty line to qualify. The Medicare payroll tax is also set to be raised in 2013 for individuals earning US$200,000 or joint-filers earning more than US$250,000, from 1.45% to 2.35%.
By this point in time, state health insurance exchanges for small companies and individuals should be set to start business, offering a larger pool to disperse risk and lower costs. Also, any individual who gets their insurance through their employer will be able to purchase a state-run health insurance option if their premiums are more than 9.5% of their income or if their plan does not cover 60% of the cost of their benefits.
One of the most contentious portions of the bill relates to the mandate to get insurance and the penalties for not doing so. In order to effectively widen risk pools and spread out costs, the bill mandates that everyone with the means must obtain health insurance. Financial penalties will be incurred by companies with 50 or more employees that do not offer their workers health insurance, while individuals will have an annual fine imposed on them for not obtaining insurance. However, there are various financial incentives to promote compliance, such as subsidies for people earning up to 400% of the poverty line and other exemptions for financial hardships and religious views.
But what does this all mean for American expatriates living abroad? While some of the healthcare reform bill, such as the increased Medicare payroll taxes, may affect expatriates, in general the mandate for health insurance and the penalties for not obtaining it will not affect them. In the new Internal Revenue Service (IRS) tax code, expatriates are treated as if they have health insurance regardless of whether they do or not. Although in order to be exempted from the insurance mandate, American expatriates must already be eligible for the IRS’ foreign earned income exclusion.
In order to meet the criteria for the exclusion that allows U.S. expats to avoid paying U.S. taxes on their first US$91,500 worth of income, the expatriate must have a tax home (the general area of your main place of business or employment where you happen to be permanently or indefinitely engaged) in a foreign country, as well as be either a legitimate resident in that country, or spend at least 330 days a year outside the United States.
Mar
23
Allianz nets US$545 Million Profit with Sale of One Third of ICBC Stake
Filed Under Allianz, China, Insurance Company | 2 Comments
By selling about one third of its remaining stake in the Industrial & Commercial Bank of China (ICBC) Ltd., Allianz SE the biggest insurer in Europe, has made a profit of US$545 million (EUR 400 million).
Back in February of this year, Allianz sold 1 billion shares of ICBC, according to a report recently published in their website. Allianz originally owned 3.22 billion ICBC shares, which are traded in the HK Stock Exchange and were equivalent to a 0.97 percent stake of this Chinese bank, the largest lender in the world by market value.
The shares sold in February could have been sold back in October of last year, when the lockup for the second half of its stake ended but Allianz decided to keep them. The sale of the first half of its stake were immediately sold in April, with Allianz booking a US$897 million (EUR 658 million) gain.
ICBC did the IPO of its shares in the Hong Kong Stock Exchange back in October 2006 and Allianz, along with American Express and Goldman Sachs Group Inc., bought its original stake six months before then. These companies agreed at that time to hold half their shares for three years, and the remainder for an additional half year.
ICBC shares have outperformed by 8 percent the 67 percent gain of the benchmark Hang Seng Index over the last 12 months. Over this same period, Allianz shares have gained 45 percent in value.
This latest sale reported by Allianz will have a positive financial impact for earnings booked under the first quarter of 2010.
Companies 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.
By the end of 2008, ICBC had altogether 385,609 employees and 16,386 domestic and overseas branches, providing extensive and high-quality financial products and services to 190 million personal clients and 3.1 million corporate clients.
Mar
22
The results of a global study conducted by Microbiologists from the University of Hong Kong have found a link between infections and acupuncture performed with poorly sanitised needles. According to this research, these findings appear to be just the beginning of more reported cases of infections since the 1970s, including hepatitis B and C and HIV.
The report, released as an editorial in a recent British Medical Journal aims to call on regulatory boards to enforce stricter training and cleanliness among practitioners, so that proper sterilisation of needles is followed or better yet, make the use of disposable needles compulsory.
In addition of clean, disposable needles, researchers call for other infection control measures to be jointly implemented, including skin disinfection procedures, aseptic techniques and proper application.
Since acupuncture has gained worldwide popularity, the warnings and recommendations contained in this study are relevant to help prevent future cases of infection, particularly in light of five outbreaks of hepatitis B linked directly to dirty acupuncture needles and several cases of HIV-positive patients whose only risk factor was participation in acupuncture. It is believed that most patients affected in this way might not be aware that acupuncture was the culprit of their illness.
An entirely new ailment known as mycobacteriosis, has been traced specifically to acupuncture and it is caused by infected needles inserted a few centimetres deep into the skin, causing bacterial outbreaks that lead to abscesses and ulcers. In the great majority of these cases, patients fully recover and only about 5 to 10 percent develop symptoms that become life-threatening, such as organ failure, flesh-eating disease or even paralysis. This new illness has a long incubation period, which may be the reason why some patients fail to connect their symptoms to the acupuncture treatment.
The study aims to raise awareness in countries where acupuncture is not already regulated, about the proper procedures to observe in order to prevent infections caused by poorly sterilised needles and improper application.
Mar
22
CIGNA International Expatriate Benefits adds to African Network
Filed Under Aetna, Africa, CIGNA, Expat Insurance, Healthcare, Insurance Company, International Healthcare | 4 Comments
CIGNA International Expatriate Benefits has broadened its African healthcare network with 47,000 healthcare facilities on March 17, 2010.
The new additions to CIGNA International’s healthcare facility network is part of its unveiling of CIGNALinks Africa which opens in Morocco, Tanzania, Kenya and South Africa; taking their network of health facilities outside the United States to about 140,000 international clinics, doctors and hospitals.
CIGNALinks is a program that aims to facilitate expatriate’s experience with international healthcare by establishing contractual alliances with local insurers and healthcare administrators, which allow CIGNA International Expatriate Benefits (CIEB) customers to get provider discounts, cashless services and streamlined claims procedures. The CIGNALinks Africa network integrates the global coverage of CIEB with South African company, Medical Services Organisation (MSO), and their joint-venture company Global Access Health Network’s local African healthcare network and services.
This continues a trend in international insurance companies expanding business and services in new markets, as seen by CIGNA’s expanded provider base in Russia and Aetna Global Benefits rolling out their Online Wellness Center in the Middle East and Africa.
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.
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.
Medical Services Organisation
Medical Services Organisation SA (Pty) Ltd., registered in 1995 in South Africa, is a wholly owned subsidiary of South African Druggist Ltd. Group. Medical Services Organisation provides healthcare industry related risk management services, specializing in Hospital and Disease Management.
Global Access Health Network
Global Access Health Network is a joint venture betweek Medical Services Organisation and Axihealth. It works with other companies, namely international insurance companies and self-insured corporates, by giving them access to local in-country Third Party Administrator healthcare networks.
Mar
19
Citing a strong recovery in investment performance along with growth in its life insurance segment, the Italian Generali Group reported a 52.1% rise in 2009 net profit, which amounted to EUR 1.31 billion (US$1.783 billion) compared to EUR 861 million (US$1.172 billion) in 2008.
Compared with the results for 2008, Generali attributed the boost in net profit to its profitable underwriting and premium growth, plus a EUR 1.8 billion (US$2.45 billion) contribution attributed to the recovery in financial markets. Additionally, EUR 2.5 billion (US$3.4 billion) were gained through its merger with Alleanza Toro.
Alleanza Toro is a new company wholly controlled by Generali created through a merger by incorporation of Alleanza Assicurazioni and Toro Assicurazioni, approved by shareholders last year in July. This new company combines the experience in the property/casualty market of Alleanza with the knowledge of the life insurance market in Italy of Toro.
Despite these positive net profit results, stock analysts gave a mixed review leaning towards dissatisfaction, explaining that stronger results were expected at the level of group operating profits.
Company mentioned:
The Generali Group is one of the most significant participants in the global insurance and financial products market. The Group is leader in Italy and Assicurazioni Generali, founded in 1831 in Trieste, is the Group’s Parent and principal operating Company. Characterised from the outset by a strong international outlook and now present in 65 Countries, Assicurazioni Generali has consolidated its position among the world’s leading insurance operators. It has in fact a strong position in western Europe, its main area of activity, with significant market shares in Germany, France, Austria, Spain, and Switzerland as well as Israel.
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