Aetna International is exiting the international private medical insurance (IPMI) market around the world aside from the Americas, with the process starting next month.
In the Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC) regions Aetna will stop offering cover for most new customers and renewals for most existing customers from 1 July for group business and from 1 November for individual business.
According to Health & Protection’s IPMI report published in January, Aetna International had a customer base of about 800,000 clients around the world.
An Aetna adviser communique seen by Health & Protection, revealed the insurer’s parent company CVS Health had been exploring options to wind-down the non-Americas insurance business of Aetna International.
“This is because CVS Health’s core focus is on transforming the consumer health experience in the US.,” it said.
“On 23 March 2022, CVS Health decided to enter an agreement to divest their IPMI business outside the Americas, resulting in us signing the preferred partnership deal with Allianz Partners.”
Start in May
The deal with Allianz Partners, which is subject to legal and regulatory confirmation, is to offer renewal terms to Aetna International policyholders outside the Americas, Thailand and India.
This will start from May for policies incepting on or after 1 July for group business and from 1 November 2022 onwards for individual business.
“This agreement means that we intend to introduce our customers to Allianz Partners and to help migrate their membership to Allianz Partners at renewal, following the transaction becoming effective,” Aetna said.
The migration process is expected to be completed by 31 October 2023.
“This means that Aetna International customers will cease being on Aetna coverage by 31 October 2023 at the latest, apart from any claims they make on their Aetna International policy,” the insurer added.
Redundencies and product launch
Health & Protection also understands that a large-scale redundancy consultation is underway at Aetna International, with several people having already departed the business.
However, some employees may be taken on by Allianz.
In its note to brokers, Aetna said: “We selected Allianz Partners because of their potential and willingness to offer employment to, and/or continue the employment of, as appropriate, a number of Aetna International roles within Allianz Partners.”
Allianz is expected to create a new version of Aetna’s Summit product for SME customers to minimise any difference in benefits and that further medical underwriting will not be required for those policyholders renewing with it.
“As we value our relationship with you, we want to reassure you that we have been working closely with Allianz Partners to plan for a smooth handover at renewal date,” the adviser statement continued.
“With Allianz Partners, you will have new coverage with similar benefits and no additional medical underwriting.”
For existing Aetna International policyholders, all policy terms, conditions and benefits remain in place until the policy expiry date.
US, Thailand and India
Aetna International’s Americas business and operations will become part of Aetna in the US and the insurer will continue to offer IPMI products and services to US-based customers.
“Aetna remains dedicated to the US expat business and intends to partner with Allianz Partners to explore opportunities to service its members outside of the US,” the insurer said.
In Thailand, Allianz Ayudhya has agreed to acquire 100% of Aetna International’s shareholdings and its Thailand business operations in their entirety.
Aetna’s Indian Health Organisation is not included in the preferred partnership deal with Allianz Partners.
Core elements of deal agreed
In a statement given to Health & Protection, Allianz Partners said: “Aetna International and Allianz Partners have agreed a preferred partnership deal for the majority of Aetna International’s business outside the Americas, Thailand and India.
“Aetna International will work very closely with Allianz Partners to migrate this international private medical insurance business to Allianz Partners at renewal.
“This follows a decision by CVS Health, Aetna International’s parent company, to focus on its core business of transforming the consumer health experience in the US.
“While agreement has been reached on the core elements of the commercial deal, it’s still subject to some important legal and regulatory requirements. For this reason we will not comment further at this time. For now, it’s business as usual.
Commenting on the purchase of the Thailand business, Thomas Charles Wilson, CEO of Allianz Ayudhya Group and Allianz Ayudhya Assurance PLC, said: “This acquisition demonstrates Allianz Ayudhya Group’s strong financial position, allowing us to significantly expand our presence in the Thai health insurance market.
“In addition, it brings increasing scale and diversification benefits to our insurance operations. We are very pleased with this acquisition and remain committed to provide the best insurance solutions to serve our customers in Thailand.”
Damian Delaney, managing director and CEO of Aetna International Thailand, added: “This is positive news for our respective companies, our customers and staff in Thailand.
“By joining the Allianz Ayudhya Group our partners and members will benefit from our shared expertise in a customer-first approach to health insurance and health services.
“We can look forward to joining forces to further advance our combined mission of helping the residents of Thailand on their paths to better health.”