Zurich-based Swiss Reinsurance Co, the world's largest reinsurer, will buy 26% stake in leading third-party administrator (TPA) TTK Healthcare Services,from the TTK group and India Value Funds Advisors, a private equity fund.TPAs provide cashless hospitalisation to mediclaim and health insurance policyholders.The two companies are awaiting the Insurance Regulatory Development Authority's approval soon.The global major also intends to create a 100 per cent owned healthcare services advisory company that will focus on product development and corporate health schemes to assist insurance companies in the rapidly expanding health insurance industry which is likely to grow 15-fold by 2015."The move will help Swiss Re to expand into health reinsurance market. The specialised health insurance advisory services will be a value addition to our clients," said Jean Michael Chatagny, managing director, strategic corporate development Asia for Swiss Re."There are limited health insurance products, inherent pricing issues and cross subsidies leading to poor profitability, limited claims management capabilities, lack of standardisation of protocols and undeveloped and fragmented risk management. The specialised health insurance advisory company will provide the expertise in pricing, underwriting and claims management to insurers said Chatagny."Stand-alone health insurers have not been able to enter India as the ecosystem is not supportive. There is a need for health-care expansion. Health insurance in my mind is the next big India industry story but it needs a catalyst," said TTK Healthcare Managing Director Girish Rao.However, the two parties refused to disclose the amount of the deal.Life and non-life insurance premiums rose to $18 billion last year, more than doubling from 2000 when India opened up the industry to foreign insurers.TTK Healthcare provides insurance companies with a range of medical claims handling services including the administration of cashless insurance plans across 6,500 hospitals and diagnostic centres in India.The company is headquartered in Bangalore, and employs approximately 400 employees across 22 locations within India.
