Pacific Prime Predicts Little Value for Clients After Cigna
Re-branding Van Breda
HONG KONG, Nov. 14, 2012 /PRNewswire/ -- Pacific Prime
will now be selling the former Van Breda Global Expat plan under
the Cigna brand after a recent acquisition. However, in 2013
Pacific Prime clients will also see large annual premium increases
across the plan and although unrelated to the re-branding,
policyholders are likely to associate the hike in premiums with the
Cigna acquisition and brand.
Numerous international medical insurers have recently published
their annual increases for 2013 and many have come in well below
the 5 year trend. Pacific Prime clients paired with a Cigna Global
Expat plus plan however, will witness a 29 percent renewal increase
and certain markets such as China, Singapore, and Hong Kong could
see increases as high as 50 percent as Pacific Prime understands.
Analysts put this increase down to market pricing adjustment but
the untimely introduction of Cigna's own economic model to run the
Expat plus plan will likely raise doubts among Pacific Prime
clients.
Pacific Prime clients may not fully understand the reasons
behind such dramatic increases in cost and this will create
management challenges. Neil Raymond,
CEO of Pacific Prime expressed his concerns: "The dramatic change
in premiums is going to be very disappointing for our clients who
will likely put this huge increase down to the Cigna acquisition
and consequent re-branding. We normally prefer insurers to adjust
medical premiums in a more balanced way rather than in such a
dramatic jump."
In addition to a hefty premium increase, Cigna has also recently
launched its own new global type health plan – Global Health
Options. Running somewhat in competition with the former Van Breda
Expat plus plan, Pacific Prime analysts are concerned that client
perceptions behind premium increases will spill over to impact
Cigna as a whole and consequently, the Global Health Options plan
may not perform as expected.
Cigna has the capability to be a leader in this competitive
market and it is understood by Pacific Prime that there are lots of
positive developments in the pipeline for its clients; however
management of the premium adjustment on the Expat Plus plan in 2013
is going to be a challenge.
SOURCE Pacific Prime