How governments can leverage reinsurers’ expertise on public healthcare schemes

Mass population insurance schemes, whereby large segments of a population are insured as part of a government-managed programme that could be then reinsured or backed by the private sector, could be studied by and inspire a number of Latin American countries, Philippe François, global head of business development, AXA Life and Health Reinsurance, has claimed.

AXA France participates on such schemes in different regions worldwide including France, where it is a market leader on employee benefit schemes and where such schemes are designed by human resources and trades unions.

AXA France, through its Indian reinsurance branch, is also one of a number of reinsurers of health schemes that have been rolled out with local government across the country in recent years.

François said that for such mass health schemes, plan design and management are specific to each country. He noted that a growing number of governments are working with private sector insurers and reinsurers to better manage the risks and administration associated with such schemes.

There is a debate in Chile as to the best way to structure the public healthcare system, which could require the involvement of the private sector.

“The Indian model is an interesting one that could be replicated,” François said. “Indian local governments have successfully engaged with the private sector to better manage the risk and administration around such health schemes and other countries could copy that as a model.”

He noted that another country where such a system could work is Colombia, where a large percentage of the population lives in rural locations—a similar scenario to India’s.

“There are many advantages to a model that accepts technical experience and process optimisation (fraud management, hospital network, etc) from the private sector.

“AXA has an extensive track record in this in several countries including India and we would be happy to participate in public debate concerning public schemes evolution in Latin America. There is a vast amount of experience we can bring,” François said.

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