Insurance

Bupa to Enter Health Insurance Market

The initial share capital of the joint venture is around $24 million

Insurer Bupa plans to foray into the Indian health insurance market though a joint venture after taking a 26 per cent stake in Max India Limited. The two companies announced the creation of a joint venture called Max Bupa Health Insurance Limited which, subject to regulatory approval, will offer a suite of products to both consumer and business customers. The initial share capital of the joint venture will be around $24 million. Bupa recently named Sydney as its Asia-Pacific headquarters, and Bupa Asia-Pacific now operates under the local brands MBF, HBA and Mutual Community. Bupa Asia-Pacific Managing Director, Dean Holden said that the joint venture was an early indication of the group's commitment to the region and recognition of its growth potential. "India is an important health insurance market where there is great potential for growth especially amongst a young population which is able to access the care and service, which Max India and Bupa can deliver with the proposed joint venture," said Holden. With over 70 per cent of India's healthcare spend being in the private sector, Bupa Asia-Pacific and Max India Limited believe that the new joint venture can be developed into a major health insurance business. India's private health insurance market is currently valued at $800 million, but is expected to increase to $8 billion by 2015. Max India Chairman Analjit Singh said, "The decision to partner with Bupa was based on the synergies and unique strengths that it brings to the joint venture." Bupa has the expertise in creating and delivering differentiated health-insurance products and a proven ability to operate in, and adapt to, international healthcare markets. Max India operates other businesses in speciality packaging products (Max Speciality Products) and Healthcare Staffing (Max HealthStaff). Bupa has 3.3 million customers in the Asia-Pacific region, which is about 30 per cent of its world-wide customer base. Holden said, "Australia was the biggest market outside the UK and he was looking to make the business larger than in the UK. There are plans to enter the Chinese healthcare market within the next six to 12 months."

EH News Bureau