Cigna Plans Big Local Presence

India, along with China and Japan are the primary focus areas for the $109-billion US health insurance major Cigna International. "Though we have operations in various developing markets, the biggest targets for us are India, China and Japan. These markets present the most interesting opportunities," said Umesh A Kurpad, vice president, Asia Pacific, healthcare development for Cigna International.

The company has already signed an MoU to set up a insurance venture in the country with Ranbaxy and Infrastructure Leasing and Financial Services (IL&FS). Cigna International will provide health, property and casualty insurance in the domestic market. "Delivery of quality health service is greatly facilitated by the availability of health insurance products as it puts quality healthcare within the reach of the common man," said Vimal Bhandari, executive director, IL&FS

 

Worldwide, fifty per cent of Cigna's total profits of $1 billion last year came from health insurance.

With only two billion people insured by the General Insurance Corporation, Cigna officials feel there is tremendous potential in the Indian market. "As the country matures economically, the need for insurance will go up. The spread of health insurance will also provide opportunity to improve the quality of healthcare in the country," feels Kurpad.

Healthcare is an important initiative for Cigna, he added.

"We can introduce products that have been proven to be successful in other parts of the world. These are not only general health policies but insurance for specific diseases like asthma and diabetes. Of, course, we would have to customise them for the India market first," Kurpad added.

Cigna International has the highest marketshare for providing comprehensive healthcare programmes for Fortune 500 companies. In India too, the company will focus on the wholesale (or corporate) segment as well as targeting individuals who need health insurance.

While fiscal incentives, through tax breaks, are not a requirement for the growth of the insurance market in India, they would help, Kurpad said. "Incentives are not a requirement but part of an overall stimulus package to increase growth in the market."

Aloke Gupta, chief representative of Cigna International in India also feels that once product patents and exclusive marketing rights are introduced, healthcare is likely to become more expensive in the country. "This will also give a fillip to health insurance companies as more people would require insurance."

One of Cigna's predecessor companies _ AFIA _ started operations in Travancore in 1923, and was a key player in the Indian insurance market before nationalisation. AFIA established a network of 35 branches in the country during its 50 years of operation here.

Cigna opened a liaison office in New Delhi in March 1997.

Cigna International has gained approval to offer health care consulting and administrative services in the country.