INSURERS IN INDIA FLESH OUT PLAN FOR JOINT TPA

Further details have been released of the plan by the four Indian state-run insurers and its single reinsurer GIC to launch their own third-party administrator (TPA) health insurance claims processing business. Milind Kharat, chairman and managing director of state-owned United India, which is one of the participants, said that the insurers were "in the process of finalizing the name for the TPA". Under the scheme, National Insurance, New India Assurance, Oriental Insurance and United India Insurance would own 23.75% each, while reinsurer GIC would own 5%. Currently the four insurers earned premiums of about INR90bn ($1.67bn) a year from health business, of which about 5% went to TPAs in fees. Insurers are reportedly discontent that the TPAs take credit for any prompt payments, but blame the insurers if payments are delayed. Mr Kharat said that with claims processing operated by what would become a joint venture TPA, the state-owned insurers would be in a stronger position to negotiate better rates with hospitals and to control the claims ratio.