Bupa thinks big in Indian health market

Max India, a financial and health services and technology
conglomerate, is partnering with Bupa in the joint venture (JV)
named Max Bupa Health Insurance (MBHI).

JV Max India chairman Analjit Singh said that prior to the decision
to establish MBHI, Max India had discussions with a number of
international health insurers.

“Our decision to partner with Bupa was based on the synergies and
unique strengths that Bupa brings to this venture,” said
Singh.

Bupa believes the Indian health insurance market has “massive
growth” potential, said the insurer group’s CEO Ray King.

Backing this view, the JV partners pointed to forecasts that
India’s GDP will exceed the GDPs of the UK and France within seven
years and exceed that of the US by 2040, making it second only to
China.

Another factor Bupa and Max India believe will drive robust growth
in India’s health insurance market is the country’s young,
urbanising population.

According to the partners, by 2020 the average age of Indians will
be only 29, compared to 37 for China and 47 for Western Europe. In
addition, India already has 27 cities with populations exceeding
one million, which is three times the figure for the US, and its
population is predicted to grow to 1.6 billion by 2050. Bupa and
Max India noted the current value of India’s health insurance
market is $800million, expected to rise to $8billion by 2015.

Bupa has a 25 percent stake in MBHI, the maximum permitted, and Max
India the balance. MBHI will have an initial share capital of £12
million ($23.7 million).

Max India’s other interests include a 74 percent stake in Indian
life insurer Max New York Life, a JV with US mutual insurer New
York Life; and Max Healthcare which operates eight
hospitals.