Max India in JV with UK health insurance major

NEW DELHI: Healthcare and insurance company, Max India, has forayed into health insurance through a joint venture with UK health insurance major, British United Provident Association (BUPA). Max India will hold 50% in the JV, promoter and chairman Analjit Singh and his family will hold 24%, and BUPA will hold the remaining 26%, reports Our Bureau.

BUPA has the option of raising its stake in the JV to 50% when the sector opens up. The JV, Max Bupa Health Insurance, will initially invest Rs 100 crore, a Max India release said. This is Max India’s second venture in the insurance sector. It already has a 26:74 general insurance JV with US-based New York Life Insurance.

“We have been interested in the health insurance sector for a long time, but were waiting for some regulatory reforms to take place. Our decision to partner with BUPA was based on the synergies and unique strengths that BUPA brings to this venture,” said Max India chairman, Analjit Singh.

. BUPA has the expertise in creating and delivering differentiated health-insurance products and a proven ability to operate in and adapt to international health care markets. Through Max India, we will capitalise on our knowledge and experience in the health and life insurance sectors,”

Mr Singh told ET that BUPA was the market leader in the health insurance sector in most of the market it operates. ‘It has a 45% market share in the UK health insurance market. It is the market leader in Spain, in Europe and in emerging markets,’’ he said.

BUPA group chief executive, Ray King, said, “The Indian health insurance market has massive potential, with a growing, young, population. We believe that many of its citizens will be looking for the high quality of care and customer service that Max BUPA will be well placed to offer.”

Health Insurance is a under penetrated market in India, a country where about 70% of the healthcare spend is in the private sector. According to industry estimates, the country’s healthcare spend is expected to touch Rs 3,33,480 crore by 2012 from Rs 1,53,330 in 2006. But less than 2% of the country’s population have any private health related insurance covering.

Source: Economic Times