International medical insurance companies are joining forces in the fight against overcharging and scams.

One might suppose that the more insurance companies there are in a particular market, the better for the buyer. It’s simple economics. Competition keeps down prices. However, an insurer can be acting in its customers’ interest when it stays out of a specific market, especially if it cross-subsidies a loss-making zone with a profitable one.

 

Two years ago Aviva, formerly Norwich Union, the world’s fifth largest insurer, entered the international medical insurance market. Its International Solutions “pick’n’mix” plan pepped up competition between insurers.

 

Aviva split the world into six zones for the purpose of premium setting. Most insurers then, and now, opt for a three-way split (Europe; Asia and the rest of the world minus North America; North America). The exception is Bupa International which has eight zones.

 

The smaller each zone, the more accurately it reflects the cost of medical claims and thus the premium. Pundits forecast that the industry will follow the Bupa-Aviva pattern – shrinking the pool on which overall claims are based, making premiums fairer.

 

Reference:http://www.telegraph.co.uk/health/expathealth/8712028/Health-insurance-providers-fight-to-beat-costly-premiums.html

 

However, Aviva appears to have gone a step farther. Its Zone 1 covers southern and eastern Africa and Zone 5 “Rest of Africa.”

Comment

You need to be a member of Global Healthcare - Network, News, Research, Event, Group, Video to add comments!

Join Global Healthcare - Network, News, Research, Event, Group, Video

Quick Links

HOME

ABOUT US

HEALTHCARE NEWS

HEALTHCARE GROUPS

HEALTHCARE RESEARCH

HEALTHCARE EVENTS

HEALTHCARE FORUM

HEALTHCARE VIDEOS

GLOBAL HEALTHCARE MEMBERS

BLOGS

Health First Magazine Updates

Healthcare Insurance Fraud - An Insight

Wish to party, don’t celebrate, but take a wellness route

Dr Prem to conduct Medical Tourism Training & Certificate program in Mumbai, India

Expert's Take on Ecotourism and Wellness Tourism

Investing in healthcare in difficult economy - A Recession proof opportunity of all time

Sustainability in healthcare: A step towards green revolution

Global Healthcare Refroms

Tips to Cope with Stress

Sound Therapy Supporting Women’s Wellness Challenges

Wellness is a way of life

Green Tea – Miracle Herb

Want to rejuvenate instantly – visit Spa

People with sweet tooth may have a sweeter personality???

Dr Prem's Health First Magazine Vol. 6 Global Healthcare

Smart way to Diet

Regular Workouts Encourage Bone Formation: Study

Call for Article and Regular contributor for a premium health, lifestyle and wellness magazine.

Invitation to Non-Profit Healthcare Associations to Create Social Media Activities at Global Healthcare Network

Quality Healthcare Practices For Patients from Across the Border

Red wine Health Myth

Why Join Global Healthcare Network?

Join Global Healthcare Network

 Content Partner 

Associated Sites