Posted on Dec 09, 2010 by Sergio Ulloa
MaxBupa is one the largest health insurers present in India and is setting its sights on growing its operation in the second most populous country in the world. The news emerged as Bupa released its Health Pulse 2010 report, which highlights the growing concern of chronic disease globally.
The joint venture between Max Indian and UK-based Bupa
initially started with paid-up capital of Rs1.51 billion (US$34 million:£21 million) when it originally started trading earlier this year, which has since increased to approximately Rs2.4 billion (US$53 million:£33 million) (link). Now, MaxBupa has revealed that its aim is to grow its paid-up capital over the next 4 years to Rs70 billion (US$1.5 billion:£973 million).
The MaxBupa joint venture is a standalone Indian health insurer, in a market which has become increasingly competitive over recent years. The Indian insurance sector
is forecast to expand in the coming years in alignment with positive economic conditions in the country. India has emerged from the 2007-2008 global financial crises as a major target for insurance companies in a bid to take advantage of the growing demand for protection products and services.
As multi-national insurers such as Bupa struggle to generate profitable returns in established markets such as the United Kingdom and the United States, attention has been channelled into the development of opportunities in emerging markets, with India being a prime target. MaxBupa has been able to grow business in India despite challenges from rival insurers such Star Health and Allied Insurance and Apollo Munich Health Insurance - both standalone insurers through Indian-Foreign company joint ventures.
The announcement of MaxBupa's target for an increase in paid-up capital came as the Indian health insurer unveiled its Bupa Health Pulse 2010 report, which highlights concerns about trends in heart disease and diabetes among the Indian population. This reflected the changing lifestyles and emergence of unhealthy eating habits being experienced in India in recent years.
Bupa's Health Pulse 2010 report covered a survey involving 12,000 adult participants across 12 countries worldwide seeking views on chronic diseases. The results from participants in India showed that over 40 percent ranked diabetes as one of the top three developing health concerns, with 50 percent rating heart disease as the main concern.
Participants in Bupa's Health Pulse survey were from Australia, Brazil, China, France, Germany, Great Britain, India, Italy, Mexico, Russia, Spain and the United States. Diabetes emerged as a major future health worry across all countries taking part, with Mexico and India ranked the top two. The report also highlighted that 55 percent of Indians had been for a medical check-up relating to the potential risk of suffering from a chronic disease, while 25 percent of Indians had not been for any health checks; this was below the 31 percent international average of people not seeking medical consultation to assess health risks.
The combined effects of a robust economy and growing health concerns in India are forecast to drive the demand for health insurance. MaxBupa is in a prime position to meet the insurance needs of the Indian population. The Indian-British joint venture is still a relative young health insurer in India, but has already established itself as one the main suppliers of private health insurance in the country.
MaxBupa currently has a network across 6 Indian cities - Delhi, Mumbai, Hyderabad, Chennai, Bangalore and Pune - with a team of employees exceeding 500 people. Healthbeat is MaxBupa flagship health insurance product, which is available to all Indians.
Insurance Companies Mentioned:
Max Bupa Health Insurance is a 74:26 joint venture between Max India Limited and UK-based Bupa. Bupa is a leading private healthcare provider with more than 10 million customers worldwide and over 60 years experience in the health sector. The Max India Group has expertise in both health and insurance related services including hospitals, clinical research and life insurance.
Star Health and Allied Insurance
Star Health and Allied Insurance is a specialist health insurance provider and was the first stand alone health insurers in India. Star Health and Allied Insurance provides health, accident, student, travel, and life insurance.
Apollo Munich Health Insurance
Apollo Munich Health Insurance Co. Ltd. (previously known as Apollo DKV Insurance Co. Ltd) is a joint venture between the Apollo Hospitals Group and Munich Health. Apollo Munich Health Insurance provides health, personal accident and travel insurance.