Bupa Enters Health Insurance Partnership in China

Posted on Jan 14, 2011 by Sergio Ulloa (G+)

The British United Provident Association (Bupa), a highly regarded specialist international providers of healthcare services has entered into a partnership agreement with the Alltrust Insurance Company of China Limited. The newly formed venture will commence business on the 27th January of 2011. This will see Bupa International providing administration facilities for Alltrust's range of private health insurance products for Chinese citizens employed overseas, and for expatriates working in China. Bupa International is a recognized expert expatriate health insurer and will work with Alltrust - a local Chinese insurer - to provide Chinese citizens working abroad, and expatriates resident in China, with private health insurance products. Alltrust's headquarters are based in Shanghai and the company has registered capital of around RMB 1 billion (US$150 million). Alltrust received approval from the China Insurance Regulatory Commission (CIRC) to trade as a general insurer in China over six years ago in 2004. The venture between the British health insurer Bupa and Alltrust will be able to offer policyholders complete insurance cover while resident in China or provide plans for health coverage to Chinese citizens while based overseas. Speaking on the agreement, Henry Du, Alltrust's Chairman, said, "Our partnership concludes a rigorous search for the right partner - Bupa operates in 190 countries around the world, and has a wealth of experience, which will be a great assets to us as we look to continue to grow in China.With more than 60 years' experience and established relations with thousands of doctors and medical facilities all over the world, Bupa International will offer our clients access to quality health cover and world class service." Alltrust's new partners will provide a multilingual team with the ability to provide clients with assistance when they require treatment and support in searching for the closest and most suitable hospital to meet their specific treatment requirements. Part of Bupa's international network includes 200,000 medical providers along with links to over 7,500 hospitals and clinics worldwide. Bupa's services include the ability to provide policyholders with options for booking appointments on their behalf, and for medical bills to be settled direct with the medical provider. Additional advantages for Alltrust's policyholders from the partnership with Bupa include contact with multi-lingual doctors and advisers, and the ability and experience in organizing emergency evacuations and repatriations, with access to 24 hours medical advice services. Unlike many international insurers, Bupa International has not made a commitment to enter into a Chinese joint-venture to gain direct access to the health insurance market. While many global insurers have made establishing a presence in China a fundamental mission, Bupa has not been particularly active in the world's second largest economy other than having a representative office in the country. This is unlike Bupa's initiative in India with the formation of MaxBupa in 2010, enabling it to feature as a major influence in the Indian insurance market. Bupa is not alone in this approach, US health insurers - as in the case of the UnitedHealth Group - have also stepped back from developing the Chinese market. While the United Health Group Inc. is present in Beijing, selling health products to expatriates in China, and providing Chinese expatriates working overseas with insurance cover, it has not yet seen fit to enter into a joint venture with a local insurer. The Chinese government and some corporate institutions. provide Chinese citizens with basic healthcare coverage, but there are limitations on the extent of cover provided with out-of-pocket payments required to be made. Consequently, there is a view that more international health insurers should take advantage of the weak indigenous healthcare coverage and the growing more prosperous middle class in China; the Aviva-COFCO joint venture, the Generali-China National Petroleum Corporation and Prudential-CITIC links are, however, examples of initiatives in this direction. Foreign insurers wanting to establish a presence in China must enter into a joint venture with a Chinese insurer and obtain permission from the CIRC. After a foreign insurer has established a recognized joint venture, in order to expand network coverage, it must receive a separate license to operate in specific regions. Health insurers in China will also be required to build a network of hospitals and provide health clinics, medical professionals and IT services to maintain patients records. Although the process for foreign insurers to establish a presence in China seems difficult, the rewards are potentially significant with a market of over 1.4 billion people. Alltrust will be well placed with the new Bupa agreement to offer expatriate insurance products. In recent years, Bupa has enjoyed more success overseas as trading conditions in more established markets such as the UK and USA have become more difficult; emerging markets providing Bupa with stronger returns in 2010 compared to the health insurer's home base in the UK. Insurance Companies 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. Alltrust Alltrust Insurance Company Of China, Ltd., was founded in 2004 operates as a general insurance company. Alltrust offers property, liability, credit, health and accident insurance products. CIGNA A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation's operating subsidiaries provide an integrated suite of medical, dental, behavioural health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world. UnitedHealthcare Group UnitedHealth Group is a leading health care company, serving more than 75 million people worldwide. UnitedHealth Group is a leader in the health benefits and services industry, the insurers six businesses - UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State, OptumHealth, Ingenix, and Prescription Solutions - offer exceptional service, broad capabilities and enduring value in creating a modern health care system. 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.