Swiss Re to Form TPA Service in China

Swiss Re has received approval to establish a consulting company in China to provide comprehensive third party administrator (TPA) and related consulting services to hospitals, insurers, policyholders and employers. Beijing Prestige Health Consulting Services Company Limited (Prestige Health) is wholly owned by Swiss Re, a global reinsurer, but will operate independently.

Prestige Health plans to open for business later this year, under the leadership of CheeKok Poh, who is transferring from Swiss Re’s Beijing Branch where he led the medical insurance team, to become CEO of the new company.

A recent Swiss Re sigma study estimates that China spent more than RMB 1,000 billion (USD137 billion) on healthcare in 2007, 52% of which was directly paid by households. Commercial medical insurance covered less than 6% of these costs, implying a market potential of RMB 489 billion (USD 67 billion).

To help insurers capitalise on this potential, Prestige Health will reportedly offer a highly-efficient form of business process outsourcing, which provides enhanced services to policyholders and an effective risk management platform for insurers. Prestige Health aims to deliver both cost savings and access to broad expertise, allowing insurers to focus resources on competing more effectively through product development, marketing and distribution.