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Stuart Leatherby has been appointed as the Managing Director to head up Aetna’s expatriate health insurance business, Aetna Global Benefits, in the Middle East and Africa.

Leatherby has been working with Aetna Global Benefits since 2000, and prior to his promotion he has been working as the head of Aetna Global Benefits’ International Markets Development team where he was responsible for expanding business across new, and preexisting geographical and market segments. In his decade of service at the company, Leatherby has worked in a number of diverse positions with a variety of responsibilities that have included areas such as compliance, technical claims, product development, workflow management, information technology, underwriting and portfolio management.

As the new Managing Director and Head of Aetna Global Benefits business in the Middle East and Africa, Stuart Leatherby will be based in Dubai, United Arab Emirates (UAE), with effect from September 1^st, 2010.

David Corkum, Aetna Global Benefits Group Managing Director, said that “Stuart’s extensive international health insurance experience will serve us well in our continued efforts to provide world-class benefit solutions and service for our valued customers and members in the Middle East and Africa. This region is a strategically important market for our organisation, and Stuart and his team’s efforts will be instrumental in our continued successful growth and expansion.”

The current Aetna Global Benefits Managing Director for the Middle East and Africa, Mark Jardin also says that “Stuart possesses a unique combination of strong technical expertise and business experience that will be key to cultivating our consultant, broker and customer relationships, as well as market development activities in the region. I have greatly enjoyed my time in the region and look forward to continuing to assist in Aetna’s international expansion and growth upon my return to the United States.”

Insurance Companies Mentioned:

Aetna

Aetna is a leading global diversified healthcare benefits company head-quartered in the US, serving approximately 35.8 million people with information and resources to help them make better informed decisions about their healthcare. 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 healthcare 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.

Aetna Global Benefits

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 US-based international health benefits providers, supporting more than 400,000 members worldwide. The organisation’s health management business collaborates with healthcare 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.

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

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.

Ping An Insurance, the second largest insurer in the world, achieved a 27.9 percent increase in net profit in the first half of the year, reaching US1.65 billion (EUR 1.3 billion), attributing it to a steady growth in sales of insurance products and banking services.

The gross written premiums reported for the first half of the year reached US$15.4 million (EUR 12.1 million), representing approximately 15.8 percent of the total written premiums in China during that period.

After acquiring a 30 percent stake in Shenzhen Development Bank, combined with their efforts to promote their own banking services, Ping An Insurance reported profits from its banking unit to the tune of US$182 million (EUR 143 million), compared to the US$95.5 million (EUR 75 million) reported a year earlier, equivalent to an almost one hundred percent increase year-on-year.

Financial analysts had estimated that Ping An Insurance would achieve a Q2 net profit of US$529.4 million (EUR 415.8 million), when it actually achieved a net profit of US$744 million (EUR 584.5 million), beating estimates by a nearly 41 percent.

Despite the low penetration level of insurance in China, which is among the lowest in the world, Ping an Insurance continues moving towards becoming a major bancassurance distributor, combining its banking unit with Shenzhen Development Bank, aiming to get a larger share of the vibrant financial products market.

Looking forward to the second half of 2010, Ping An anticipates a slowdown caused by the Chinese government’s efforts to reign in their racing economy, compounded by volatility in the stock market and the overall uncertain outlook of the world economy.

Insurance Company mentioned:

Ping An

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

The European Commission has given its approval for MetLife’s purchase of AIG subsidiaries American Life Insurance Company (ALICO) and Delaware American Life Insurance Company (DelAm), as part of MetLife’s takeover of AIG’s international life insurance business.

MetLife’s purchase of ALICO and associated subsidiaries was agreed upon early in 2010, and the company recently obtained approval to purchase ALICO’s Hungary-based subsidiary, AHICO, from Hungary’s financial markets regulator, PSzÁF, in the beginning of August, 2010.

The European Commission was looking at whether or not MetLife’s takeover of the two companies, ALICO and DelAm, would negatively impact competition in European markets. DelAm is part of AIG’s international life insurance operations. The purchase of DelAm, which provides wealth management services, retirement planning, life insurance and health insurance to individuals as well as commercial and institutional clients was considered not to pose any concerns, especially considering it does not provide services in the EU.

ALICO, which provides life insurance, retirement planning, wealth management, accident insurance and health insurance to individual customers and corporate clients, was found to have some overlap in activities with MetLife by the commission. MetLife and ALICO did overlap in some life insurance products in a few EU Member markets, however the combined market share of MetLife and ALICO in these markets would still be relatively small and the combined company would still face strong competition from other credible companies in the marketplace.

After MetLife’s acquisition of ALICO, it is expected that MetLife will be in a top-five position in many emerging markets, including those in central and eastern Europe, Latin America and the Middle East. MetLife is hoping to wrap up the deal with AIG by the end of 2010.

Insurance Companies Mentioned:

AIG

American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.

ALICO

The American Life Insurance Company, generally known as Alico, provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With a wide range of products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients. Their products include; health insurance, life insurance, savings plans, accident insurance, retirement planning and travel insurance among others.

DelAm

Delaware American Life Insurance Company, or DelAm, participates in the accident, life and health insurance business, writing accidental death and dismemberment, group life, long term disability, dental, and medical business as part of AIG’s international life insurance sales operations. It was incorporated in 1964 and is based in Houston, Texas; it is a subsidiary of AIG.

MetLife Inc.

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.

Bupa has added Health Care Select 3 Plus (HCS3P) as a fifth choice in their Care Select insurance product line, effectively extending their Heartbeat range of plans offered to individuals in search of private medical insurance.

In the scheme of the Heartbeat Range, Health Care Select 1 delivers the most comprehensive cover, whilst Health Care Select 4 brings the lowest level of cover. Health Care Select 3 Plus fits right in between these two levels of medical cover. A specialist plan that provides medical cover for heart and cancer is also included under the Heartbeat Range.

Health Care Select 3 Plus covers the full cost of hospital charges and the fees of consultants for in-patient and day treatment, including cancer treatment. Also covered are the full cost of radiotherapy and chemotherapy, diagnostic tests and therapies for cancer treatment, as well as eligible outpatient cancer drugs. The benefits for outpatient treatment have a coverage ceiling of US$1,550 (EUR 1,220) for the combined cost of consultations, diagnostic tests, physiotherapy and other therapies.

Other benefits in this new HCS3P plan include the cost of a private ambulance up to US$93 (EUR 73) each tip, accommodation for one parent when staying with a child under 12 years of age who is receiving in-patient treatment, plus access to the Bupa health line service. Not covered under this plan are the complementary medicine and psychiatric treatments.

By removing benefits such as psychiatric treatment and limiting the outpatient coverage, this plan reduces the amount paid in the form of premiums, something that clients concerned with the cost of the plan may find reasonable, as not all clients feel that these benefits are necessary.

As a trend, the modular approach in the level of cover offered by insurance product lines, like the Heartbeat Range offered by Bupa, is gaining attention among providers of private medical insurance and other companies are coming out with their respective product offerings.

The following table summarizes the benefits offered by the Health Care Select products in the Heartbeat Range:

Insurance Company mentioned:

Bupa

Bupa is an international health insurance company that provides health insurance for individuals and companies all over the world. Bupa 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.

Liberty Mutual Group continues its expansion in China by starting branch operations in Zhejiang, after having received the approval of the China Insurance Regulatory Commission (CIRC). Liberty Insurance Company Limited (LICL) had received approval from CIRC to open the branch in Hangzhou, Zhejiang Province in December 2009.

The Chinese Province of Zhejiang has a population of more than 47 million people, and is located 700 miles to the south of Beijing. There was no foreign company operating in Zhejiang offering property and casualty insurance products, which makes Liberty Mutual the first company to penetrate this segment of the market in that part of China.

In addition to its presence in Zhejiang, Liberty Mutual has operations in Chongqing and Beijing. Through the branches at these three locations the company will offer product lines for personal insurance and a wide range of commercial insurance.

Liberty Mutual first opened a representative office in Shanghai in 1996, their expansion in China continued in January of the year 2004 when the company received the approval to open its first insurance office in Chongqing, gaining the strategic position of being the first foreign insurance company to offer property and casualty insurance products in western China.

Then on September 2007, Liberty Mutual received approval from the CIRC to have its Chongqing operation converted to a wholly-owned subsidiary, becoming Liberty Insurance Company Limited (LICL). This gave LICL the distinction of becoming the only Fortune 500 company subsidiary head-quartered in Chongqing.

The President of Liberty Mutual Group, David Long, described the achievements of the company with the following words: “Liberty Mutual’s strategy of being the first insurer to enter markets untapped by foreign companies in China continues to be successful. CIRC’s approval of our Zhejiang branch reinforces our reputation as a strong company committed to providing quality insurance in China.”

Insurance Company mentioned:

Liberty Mutual Group

Liberty Mutual Group offers a wide range of insurance products and services, including personal automobile, homeowners, workers compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, assumed reinsurance, fire, and surety. Liberty Mutual Group employs over 45,000 people in more than 900 offices throughout the world.

It has emerged that Chartis Insurance, formerly American International Underwriters, was the underwriter for the travel insurance policies held by 4 of the victims in the recent Philippines hostage crisis. Tour operator, Hong Thai Travel, has promised to provide additional compensation to the remaining families not holding travel insurance coverage. The incident on Monday, August 23, left 8 Hong Kong tourists dead, and spurred mass outrage across the South-East Asian region.

Hong Thai Travel has promised HK$ 320,000 (US$ 41,025) in compensation to each victim’s family. Of the total compensation being paid out by the tour operator, HK$ 300,000 (US$ 38,461) is travel accident compensation, while the remaining HK$ 20,000 (US$ 2,564) is a death gratuity.

However, of the families of the 8 victims receiving the Hong Thai Travel compensation package, 4 families stand to receive an additional HK$ 1,000,000 (US$ 128,205) due to the fact that they had purchased extra travel insurance coverage from Chartis Insurance, Hong Thai Travel’s official insurance partner.

Chartis Vice President, Wong Fu-Tat, said “the level of compensation for victims has been doubled, from HK$500,000 to HK$1 million, under insurance covering accidents caused by public transport.” As such, the insurance company had labeled the situation as “special.” Additionally, Chartis has said that “Special Arrangements” were in place to help the survivors of the tragedy, with the company providing up to HK$ 1,000,000 in Philippines Medical Benefits, and covering further medical treatment in Hong Kong up to HK$ 100,000 (US$ 12,820).

Under a typical Chartis/AIU travel policy, the victim’s family would only be able to claim up to HK$ 500,000 (US$ 64,102) due to the fact that all the victims were on a tour, organized by a tour agency. Under the Chartis policy, “Accidents while in a Common Carrier” can be indemnified up to HK$ 1,000,000. However the policy wording states:

The Benefit will be payable to the Insured Person who suffers an Injury while riding as a fare paying passenger, and not as pilot, operator or crew member in or on, boarding or alighting from any Common Carrier, or the carrier as arranged by a travel agent, or while the Insured Person is riding in an automobile at the time of Injury during the insured Journey outside Hong Kong which, directly and independently of all other causes shall result in any Event provided in the Benefit Table…

In this case, as the victims were on a tour, they would normally be excluded from coverage under the “Accidents while in a Common Carrier” benefit, and covered under the policy’s “Other Accidents Benefit;” where the company is only liable for up to HK$ 500,000 in compensation. However, Chartis, recognizing the extremity of the situation has doubled the total amount for which families of the victims can claim.

This affair only serves to highlight the need for comprehensive travel insurance coverage. As we have previously illustrated, travel insurance is one key component of a vacation which often goes overlooked. However, in the event of a serious situation, such as the hostage taking incident, it is important that coverage is in place. The differences between the compensation being received by the families who had insurance coverage in place and those who did not is HK$ 1,000,000 (US$ 128,205); and should serve to highlight the importance of adequate insurance coverage while overseas.

The last victim of the Philippines Hostage crisis was the Hong Thai Travel tour guide, Masa Tse Ting-Chunn, who has been widely praised in Hong Kong for phoning colleagues in Hong Kong and alerting them to the crisis. Tse’s family will receive the HK$ 320,000 accident benefit and death gratuity from Hong Thai Travel, in addition to his annual travel insurance benefits and labor insurance coverage.

South Africa-based health insurance company, Discovery Holdings, has signed an agreement with Ping An Insurance Company to take a substantial stake in Ping An’s health insurance subsidiary, Ping An Health Insurance Company, in order to develop the Chinese health insurance market.

The agreement was signed during a trip to Beijing and Shanghai by South African government officials, including the President Jacob Zuma and 12 ministers, as well as a business delegation of over 320 South African business people. The agreement will see Discovery Holdings take an initial 20 percent stake in Ping An Health Insurance, Ping An Group’s health insurance subsidiary.

Discovery bought Standard Life’s health insurance unit in the UK earlier this year, enveloping it in its joint-venture with Prudential, PruHealth. With health insurance clients in South Africa and the UK reaching more than 2.9 million, Discovery’s experience in running health insurance businesses in both developed and developing insurance markets is seen as a large part in why Ping An picked Discovery for the partnership.

The number of upper- and middle-income households in China reaches 80-90 million, most of which are capable of affording top-up insurance to complement the Social Health Insurance system run by the government. The demand from this segment of the population for insurance products that cover private healthcare services, as well as drugs and diagnostic tests that fall outside the coverage schedule of the Social Health Insurance is increasing, and the government is encouraging health insurance companies to fulfill this need as it tries to roll out the Healthy China 2020 reforms.

Ping An Health Insurance is likely to benefit from the strengths of both Ping An Group and Discovery Holdings. Ping An Health Insurance can springboard off the back of Ping An Group’s scale, distribution network and experience in the Chinese market, while Discovery brings its array of health products, systems and processes, and data and risk management abilities to the table.

Adrian Gore, the Chief Executive Officer of Discovery Holdings said that “Ping An is an excellent partner. The Group is a leader in the Chinese insurance market, providing immediate scale, brand and distribution capability in this rapidly growing market.”

Ping An’s Chief Insurance Officer also sees a bright future ahead, adding that “Both Ping An and Discovery have a vision to fundamentally change the markets in which they operate, and provide consumers with innovative, benefit-rich products. Discovery is a global leader in consumer-engaged health care, and we are excited to have them as a partner. Through this cooperation, Discovery will also be able to share the massive distribution channel and customer base brought by Ping An.”

Insurance Companies Mentioned:

Discovery Holdings

Discovery is a financial services provider based in Johannesburg, South Africa, and was founded in 1992. Discovery offers health insurance 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.

Ping An Insurance Company

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

Swiss Life Group, a leading life insurance and pension provider in Switzerland, reported a 94% increase in net income for the first half of 2010. This was due to growth in premiums and newly implemented efficiency measures aimed at cutting operating costs. The revenue increase was reported in all of the major regional markets where the group operates, including Switzerland, France and Germany.

During the first half of this year the net income of Swiss Life increased to US$253.3 million (EUR 200.4 million) from US$131 million (EUR 103.6 million) for the same period in 2009. The combined amount of gross premiums, policy fees and deposits increased 20% year-on-year to US$11.5 billion (EUR 9.1 billion).

The strong performance by the company in the first half of 2010 was summarized in a statement released by Bruno Pfister, CEO of Swiss Life, by saying: “The improvements we achieved in client relations and distribution confirm that we have made sustainable progress in our pursuit of profitable growth. The measures introduced last year as part of our group-wide Milestone program have started to pay off.”

Last year, Swiss Life started the implementation of their new efficiency-enhancing policy, known as the “milestone” program, under which the company aims to increase new business within their “modern insurance and risk products” by more than 70%. The program can be considered a success for the company, as Swiss Life has achieved the 70% growth targeted by the policy – illustrated by the high returns the company experience during the first half of 2010 – in addition to reducing overall company-wide operating costs by 8%.

All that is left for Swiss Life is to realize their margin management target, which remains at 0.9%, unchanged from 2009. Analysts speculate that the target set by the company in this regard may be difficult to reach, due to the prevailing low interest-rate environment in Europe and pressure from competition across the region.

Citing low interest rates as a primary concern, Swiss Life has taken steps to limit their exposure to market risks, and have launched a new time-frame for the achievement of their margin management target – now aiming to see improvement by 2012. During the past 12 months the company has launched approximately 30 insurance products, conformed by a mixture of new and revitalized policies, and are still continuing their approach of achieving profitability before growth.

Insurance Company mentioned:

Swiss Life

Swiss Life was founded in 1857 as Schweizerische Rentenanstalt. The Swiss Life Group is committed to openness and transparency in management and actively supports good corporate governance. Swiss Life is a leading life and pensions provider in Switzerland and it is one of the top 10 European life insurance providers. As at the end of 2009, the Swiss Life Group employed a staff of around 8200.

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 3^rd 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 22^nd 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.”

CaliforniaChoice, a health insurance exchange that is a product of CHOICE Administrators, announced that it has become the first health insurance exchange in the United States to reach 20 million member-months.

Health insurance exchanges offer consumers an easy way to compare costs and benefit options across a variety of health insurance products from insurers participating in the exchange. CaliforniaChoice counts among its participants: Anthem Blue Cross, Kaiser Permanente, Health Net, Sharp Health Plan, and Western Health Advantage, as well as a variety of chiropractic, dental, vision and other ancillary benefit policies.

Started in 1996, CaliforniaChoice is geared towards providing individuals and small and medium-sized employers an accessible way to find health insurance that fits both their coverage and budget needs. By reaching the landmark of 20 million member-months, CaliforniaChoice demonstrates its position as not only the oldest health insurance exchange in America, but also one of its most successful. A member-month is simply the number of participants in the exchange who are members for each month.

While some state-run exchanges have not performed strongly, CaliforniaChoice demonstrates that with the right set up, the exchanges can be very effective. The apparent key to success as a health insurance exchange boils down to having a variety of quality health plans covering different levels of benefits and price points, combined with decision support tools to make finding the appropriate health insurance plan easier for participants.

As part of the Senate health reform bill, H.R. 3590, Patient Protection and Affordable Care Act, which was passed by the Senate in December 2009 and then by the House of Representatives in March 2010, each state must set up health insurance exchanges for individual and family health insurance plans, as well as small groups or companies of up to 100 employees. This mandate for health insurance exchanges takes effect on January 1, 2014.

The President of CHOICE Administrators, Ron Goldstein said “If done properly – as the privately run CaliforniaChoice has shown it can be – exchanges have the capacity to help us move to a more rational method of purchasing health coverage while getting society closer to achieving the noble goal of universal coverage for all its citizens,” continuing on to say that “In many ways the exchange is like a giant, online health shopping mall filled with an assortment of carriers offering their products at various price points and benefits, the CaliforniaChoice model has witnessed unprecedented success, and it’s not a stretch to call it a model for how exchanges should be established and administered under the new regulations.”

Companies Mentioned:

CHOICE Administrators

Based in Orange, California, CHOICE Administrators inc. is a subsidiary of Word & Brown, that deals with developing and administering employee-choice health benefit programs. They oversee health insurance exchanges like CaliforniaChoice and CaliforniaChoice 51+, which offer healthcare policies to individuals, families and small and medium sized groups.

Blue Cross Blue Shield of Massachusetts (BCBSMA) has chosen Andrew Dreyfus to become the new president and chief executive starting on 07 September 2010. Boston-based BCBSMA, which is the largest health insurer in the state, had been led by William C. Van Faasen as interim CEO, after the resignation of Cleve L. Killingsworth in March 2010.

Mr. Dreyfus is a veteran insurance executive who had served as executive vice president for healthcare services at BCBSMA for the past five years, he is 51 years old. Before joining Blue Cross in 2001, Mr. Dreyfus worked on healthcare in state government, through the Massachusetts Hospital Association, from where he commissioned a report that became the foundation for the healthcare law in the state. Mr Dreyfus currently spearheads the effort within BCBSMA to remunerate providers based on the value of their services, rather than volume.

At this point in time, the state of Massachusetts is facing rising healthcare costs, which have burdened businesses and consumers alike, as well as becoming an issue for insurers and healthcare providers.

In a recent announcement, Blue Cross Blue Shield reported a loss of US$14.3 million (EUR 11.2 million) in the first half of this year attributed in part to “inadequate premiums” due to the state rate cap in the SME business and individual markets. For the most part of this year, BCBSMA had been embroiled in a dispute over these state-imposed rate caps, before finally reaching a settlement with regulators earlier this month, agreeing to voluntarily limit its rate increases in the small-group market to single-digit increments for the rest of this year.

After the announcement for the new role of Mr. Dreyfus, he said in a statement that “Making healthcare affordable is, and will continue to be, our company’s highest priority.”

Insurance Company mentioned:

Blue Shield Blue Cross

Blue Cross Blue Shield of Massachusetts is an Independent Licensee of the Blue Cross and Blue Shield Association. he Blue Cross and Blue Shield Association (BCBSA) is a national federation of 39 independent, community-based and locally operated Blue Cross and Blue Shield companies. Throughout our 80-year history, the 39 Blue Cross and Blue Shield companies have provided millions of families with top-quality, affordable health insurance. Today, the Blue Cross and Blue Shield Brands are registered in more than 170 countries.

Manulife Life Insurance Co. plans to launch newly developed products, supported by a diversified distribution strategy to match the changing dynamics of the mature insurance market in Japan. The ageing population and weak stock market are perceived by Manulife as having potential for offering life insurance products, which are backed up by the ability to create protection for wealth management and long-term savings.

Ageing populations tend to have an increased demand for insurance products that can accumulate, preserve and transfer wealth. The current economic, socio-economic and demographic trends present in Japan present new opportunities to the life insurance sector.

For the past two decades, the Japanese stock market has had a low performance and the interest rates remained close to zero during the past 10 years. Consumers in Japan have been turning towards fixed and variable yield annuities supported by an underlying guarantee as an alternative form of investment. Likewise, consumers are buying medical insurance as the means to satisfy the ever growing need for healthcare.

Manulife Japan is a subsidiary of Canada-based Manulife Life Financial Group. Their strategy for the future is to provide a wider diversity of insurance products through multiple sales channels, which will complement the recently launched foreign-denominated fixed annuities offered to the financial institutions.

According to recent reports, Bancassurance in Japan shares the vision of Manulife and foresees significant opportunities ahead, due to the steady shift in focus of banks and security firms towards a more diversified range of products, departing from the tradition of primarily offering variable annuities.

Towards the end of last month Manulife Japan launched a new annuity product { http://www.globalsurance.com/blog/new-annuity-product-launched-by-manulife-in-japan-153220.html }, at a time when fixed annuity products denominated in yen and other foreign currencies continue having a positive reception. Although declining in comparison to previous years, the number of life insurance companies offering variable annuities continue offering their products to the Japanese market.

Manulife Japan was established in 1999. They now operate through approximately 120 local sales offices and eight regional offices with more than 3,000 tied agents. Back in the year 2002 Manulife Japan started to offer over-the-counter sales of individual annuity products through financial institutions, followed by the sale of insurance products in 2009. At present, the company has sales alliances with more than 40 banks and securities firms.

Insurance Company mentioned:

Manulife

Manulife Life Insurance Company, Japan. Manulife Financial was one of the first foreign life insurance companies to establish operations in Japan, entering the market in 1901. Manulife re-entered Japan in 1999, laying the foundation for the establishment of Manulife Life Insurance Company (Manulife Japan). The vision of Manulife Japan is to be the most professional life insurance company in Japan, providing leading financial protection and wealth management products and services, and learning from and quickly adapting to its customers? changing needs.

The insurance industry in the United Arab Emirates seemed unaffected by the global downturn in 2009, growing 9.8 percent over the previous year and generating AED 20.1 billion (USD 5.5 billion) in premiums for the year.

A report issued by the UAE’s industry watchdog, the Insurance Authority, showed that the insurance industry contributed AED 23.7 billion (USD 6.5 billion) towards the economy, compared to AED 21.6 billion (USD 5.8 billion) during 2008.

Property and Casualty business in the UAE pulled in AED 16.8 billion (USD 4.6 billion) in gross written premiums in 2009, an increase of 7.7 percent over the AED 15.6 billion (USD 4.2 billion) in gross written premiums in 2008. Of all premiums underwritten in the property and casualty sector, accident and casualty insurance made up 46.7 percent of premiums, medical insurance comprised 24.5 percent, fire insurance totaled 12.7 percent, and land, sea and air transport business made up 12.1 of underwritten premiums, with the remaining 4 percent coming from other business.

National insurance companies in the UAE accounted for 76.3 percent of all underwritten property and casualty insurance business, with the remainder being comprised of foreign companies. The Insurance Authority’s report pegs earned premiums from property and casualty insurance at AED 16.3 billion (USD 4.4 billion).

While the insurance industry in the UAE did well in 2009, it remains to be seen whether it will continue to do so in 2010. With nearly half of all underwritten premiums coming from accident and casualty insurance, which directly pertains to insuring construction projects among other things, the insurance industry could see a drastic drop in this sector of business considering that the construction industry is still trying to come back from its near total collapse in 2009.

Major construction companies are reeling from the aftermath of Dubai’s economic crisis, with many projects having been postponed and property prices falling sharply across the UAE. Arabtec, one of the UAE’s construction giants saw a 40 percent year-on-year drop in profits for the second quarter of 2010, while British construction company Balfour Beatty reported a 10 percent drop in revenue from its Middle Eastern construction business for the first half of 2010, compared with the same time period last year. If the construction industry in the UAE continues to flounder, then it has a potential knock on effect on the property and casualty insurance industry.

Life insurance and fund accumulation operations in the UAE made AED 3.3 billion (USD 898 million) worth of underwriting premiums in 2009, growing 22.22 percent year-on-year. National companies accounted for a 35.1 percent share of the premiums, while the claims ratio for the life insurance business in the UAE rose from 58.8 percent in 2008, to 59.1 percent in 2009.

At the end of 2009, there were 58 insurance companies operating in the UAE, 32 of which are national companies, while the number of insurance brokers working in the country dropped 20 percent to 169 companies. The large drop in the number of insurance brokers was due to many of them being found not in compliance with a regulation of the insurance brokers profession, namely ministerial resolution (543)/2006.

India-based joint-venture Bajaj Allianz General Insurance Company has launched a new policy dubbed the Star Package Policy, which provides modular coverage of up to eight separate risks, ranging from health insurance coverage to home contents insurance.

Star Package provides eight coverage options which are a mix of health insurance, life insurance and general insurance risks. The policy options are incredibly flexible, offering a variety of choices in sums insured for each policy module, as well as family floaters and further options depending on the policy module. The policy requires that a minimum of three coverage options be selected when the policy is taken out. The eight coverage options are: hospital cash, health guard, critical illness, personal accident, education grant, householders contents, traveling baggage, and public liability.

The hospital cash section provides fixed cash benefits to the policy holder for every day someone covered under the policy is hospitalized for up to 30 days, relative to the sum insured. The health guard option offers cashless benefits and reimbursement for medical treatment at hospitals within Bajaj Allianz’s network, with additional options such as organ transplant cover, and medical evacuation, reconstructive surgery and physiotherapy cover.

Critical illness cover pays a lump sum benefit should the insured be diagnosed with a critical illness, subject to the conditions of the policy. The personal accident module provides coverage for the death, permanent total disability (PTD), permanent partial disability (PPD), and temporary total disability (TTD) of the policy holder, paying sums based on the sum insured as well as providing reimbursement of up to 40% of medical expenses incurred.

The education grant section pays the sum insured towards the continuing costs of education for the policyholder’s child or children in the event of the policyholder’s death or permanent total disability. The householder contents module functions the same as first loss basis coverage under Bajaj Allianz’s Standard Fire policy (including earthquakes).

The traveling baggage option pays the policyholder in respect of lost baggage while on tour or holiday. The last module, public liability, protects the insured’s legal liability for bodily injury or damage to the property of third parties.

As mentioned earlier, many of the policy sections offer family floaters, whereby spouses or children can be covered under that policy section for an additional premium. The policy does come with a number of premium discounts as well; with a minimum of 3 options selected, signing up for 4-5 policy sections gets a 10% discount, while opting for 6-8 of the policy sections receives a 15% discount on the premium. Bajaj Allianz also offers long term policy discounts with a 10% discount for 2 years and 15% for 3 years.

Insurance Company Mentioned:

Bajaj Allianz General Insurance Company

Established in early 2001, Bajaj Allianz General Insurance Company Limited is a joint-venture company between Bajaj Finserv Limited and Allianz SE, whereby Bajaj Finserv holds a 74% stake, with Allianz SE holding the remaining 26%. Bajaj Allianz has a network spanning over 200 towns across India and has a paid up capital of INR 1.1 billion (USD 23.6 million).

The RM15 million (US$4.7 million) acquisition of Tahan Insurance by Singapore listed Great Eastern Holdings has been given approval by Bank Negara. The takeover will be completed by Great Eastern Holdings wholly owned Malaysia insurance company, Overseas Assurance Corporation Malaysia (OACM), who already operate in the Malaysian general and life insurance market.

Bank Negara, Malaysia’s central bank, took control of Tahan Insurance after the previous Malaysian owners, namely Idaman Uggul Bhd, were unable to meet the Malaysian Central bank’s capital threshold requirements.

Bank Negara has been looking for prospective buyers since it took control of Tahan Insurance, with numerous interested parties, including Fairfax Asia, Tokio Marine Asia and Allianz Malaysia, all failing to negotiate terms.

In May 2009, Pricewaterhouse Coopers (PwC) were instructed by Bank Negara Malaysia to find buyers for the general insurer Tahan Insurance, with Great Eastern Holding finally negotiating a deal in August 2010. The potential purchase of Tahan Insurance is still subject to final approval by regulators, but the deal is expected to be completed by the fourth quarter of this year.

Great Eastern Holdings will complete the acquisition of Tahan Insurance through its life and general insurance subsidiary Overseas Assurance Corporation Malaysia (OACM), a wholly owned Malaysian enterprise. The acquisition is expected to cost Great Eastern Holdings approximately RM15 million (US$4.7 million ) and further cement OACM’s presence in the Malaysian insurance industry. This will mean that OACM will obtain an increased number of policyholders in the Malaysian insurance industry and gain access to Tahan range of insurance products, which include; motor, health, medical care and travel insurance.

Great Eastern Holdings Group CEO -Mr Ng Keng Hooi said, “This is one of our plans for OACM to play a more significant role in the general insurance industry. Based on the Group’s strong track record and financial resources, we are confident and well positioned to expand this business and achieve greater growth in the years ahead.”

The takeover by Great Eastern Holdings is part of a strategy to expand their business activity in Malaysia, with Mr Ng Keng Hooi further saying: “From the commercial point of view, there are opportunities to expand our customer base and synergise our products and distribution strengths. The synergy created from the acquisition will further strengthen OACM’s vision to become the general insurer of choice in Malaysia.”

In December 2009, OACM’s network in Malaysia stood at 12 branches and 6 servicing offices, with more than 2600 insurance agents. This business generated a gross premium income of RM223 million (US$ 70.4 million), with total assets exceeding RM380million (US$ 120 million).

OACM and Tahan Insurance are expected to sign a Business Portfolio Transfer Agreement shortly; allowing them to file an application to the High Court of Malaya for final approval and transfer of business from Taham to OACM. In the interim period Tahan policyholders will continue to be served by Tahan insurance until final takeover is completed.

Insurance Companies Mentioned:

Overseas Assurance Corporation (OAC)

Overseas Assurance Corporation (OAC) is the oldest composite insurer in Singapore handling both life and general insurance. Since December 2000 when it became a fully-owned subsidiary of Great Eastern Holdings, its focus has been on strengthening its bancassurance business, with its products distributed through OCBC Bank’s banking network throughout Singapore. It also provides general insurance in Singapore and Malaysia.

Great Eastern
Great Eastern is the oldest and most established life insurance group in Singapore and Malaysia. With $50.9 billion in assets and 3.8 million policyholders, it has two successful distribution channels – the tied agency force and bancassurance. The Company also operates in China, Indonesia, Vietnam and Brunei.

Tahan Insurance

Tahan Insurance Malaysia Berhad provides a range of services in the general insurance business and life assurance. It underwrites general business, such as motor, fire, accident, marine, aviation, and engineering, as well as life.

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:

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.

AIA Group Chief Marketing Officer, Chris Wei, recently communicated that Asia is the global leader in terms of growth in the life insurance market. According to figures released by Mr. Wei, the annual growth rate of life insurance premiums in Asia is 17 percent, compared to 11.6 percent in Europe and 4.9 percent in North America. These figures were shared with the Financial Services Council of Australia in a conference in the city of Melbourne.

According to Mr. Wei, while the continent may be leading the global market there is still room for growth in the life insurance market in Asia, since it stands at approximately 35.3 percent of the size of the market in Europe. The life insurance market in Asia is estimated to be worth US$358 million (EUR 279 million), whilst in Europe, it amounts to an estimated US$1,015 billion (EUR 791 billion).

Sounding a word of caution, Mr. Wei emphasised that in order for companies to be successful in Asia, they must understand the cultural differences and the traditions followed in conducting business. Citing some examples, Mr. Wei mentioned that “In the Philippines to talk to somebody about insurance is seen as a jinx, as they believe the event will happen if they take out a policy.”

Likewise, the type of cover sought after by people in other Asian countries varies: In Hong Kong, critical illness insurance is in higher demand, whilst people in Thailand are more interested in savings and accident cover. People in Korea give preference to cancer cover, as they believe that every time a soap opera star disappears from TV is due to the fact that they have died of cancer.

As such, Mr. Wei stressed the need for companies to be able to offer product diversity that matches the demographics and different needs of people in Asian countries.

Closing on his impressions of the life insurance market in Asia, Mr. Wei concluded by saying that “Asia is a compelling story which consists of both emerging and mature markets. While Hong Kong and Singapore are mature markets, there are still opportunities in other Asian countries with low insurance take-up.”

Insurance Company mentioned:

AIA

The AIA Group is a leading life insurance organization in Asia Pacific that traces its roots in the region back more than 90 years. It provides individuals and businesses with products and services for life insurance, retirement planning, accident and health insurance as well as wealth management solutions. Through an extensive network of 320,000 agents and approximately 23,500 employees across 15 geographical markets, the AIA Group serves customers of over 23 million in-force policies in the region.

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.

 

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 30^th 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.

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