Advisers have told Health & Protection they are sad to see UnitedHealthcare Global’s (UHG) exit from the international private medical insurance (IPMI) market.
They were pleased to see an agreement reached with Cigna Global Health Benefits (GHB) to support UHG clients but have been a little disappointed with communication from both insurers immediately following the announcement.
Cigna GHB has since answered several questions posed by Health & Protection sister title Corporate Adviser about how arrangements for renewals and client support will work past the deal.
Cigna GHB has revealed that it has already begun issuing renewal terms to UHG clients.
The insurer said it is also intending to honour renewal terms issued previously by UHG with a similar product offering where this is possible.
And it is also looking to retain some of the UHG team as it seeks to build its proposition.
Another major name leaving
At the end of September, UHG announced its exit from the international private medical insurance (IPMI) market alongside confirmation that a deal had been reached to sell its renewal rights to Cigna GHB.
Health & Protection understands fewer than 100,000 members were covered by the decision and the agreement does not include UHG products, provider networks, service platforms or other operating assets.
Health & Protection spoke to advisers in the affected regions for their thoughts on the moves and several asked to remain anonymous to protect working relationships.
Overall, advisers said they were surprised by UHG’s exit from the market and disappointed to see another major name leaving the sector as good quality competition was always welcome.
They also referenced the good people working at UHG and were sad they would be affected by the turmoil.
In terms of Cigna GHB taking over the renewal process, advisers were largely pleased with this arrangement noting Cigna was a strong insurer with good people too and they hoped a smooth process could be achieved to support existing clients.
The main concern raised was a lack of communication to advisers from both insurers when the deal was made with little information about what would happen being shared in the immediate aftermath.
‘Sizeable gap in the market’
Amber Musson-Thorp, head of healthcare consulting at Louvre First Advisory – Qatar, said UHG’s decision was a significant moment for the industry after a very strong start and rapid success over the last eight years.
Musson-Thorp said had a long-standing partnership with UnitedHealthcare Global, working together on new markets and growing existing ones.
“I am especially proud of what we achieved in Qatar, and grateful for the trust, support and collaboration of the talented people I have worked with over the years. They gave me a great partner, and one I will miss,” she said.
“UHG’s departure will leave a sizeable gap in the market. It was a major, trusted name, yet one that could also bring the agility and flexibility often associated with a smaller insurer. That combination made it a distinctive partner for clients and advisers.”
Musson-Thorp added that she was not concerned about the future of existing clients with Cigna GHB a worthy renewal partner as it would give clients a defined route forward.
“Having said that, particular focus will need to be made regarding the detail around what is offered and clients can explore the wider market and consider what best meets their needs,” she said.
“This is where independent advisers and consultants play an important role: helping clients understand the terms offered, compare their options and make an informed decision.”
She noted that for employers, the priority would be understanding the terms offered and considering them alongside the wider market, with benefits, underwriting, added value benefits, local support, and the needs of a workforce across multiple countries all deserving careful attention.
One the wider trend of industry mergers, acquisitions and consolidation, Musson-Thorp said: “With consolidation reshaping the market, there is an opportunity for the larger established insurers to step forward with renewed energy and appetite to compete.
“Insurers, brokers and strategic advisers all have a part to play in supporting a well-managed transition and helping clients make confident decisions.
“A provider’s name may change. The responsibility to the people covered by the plan remains,” she added.
Cigna GHB did not wish to comment for this article.