Swiss Re helps Roche open up China’s oncology market
pharmafile | December 17, 2012 | News story | Sales and Marketing | Cancer, China, Roche, Swiss re, oncology
Roche and reinsurance firm Swiss Re have teamed up to find an innovative way into China’s healthcare market.
For the pharma industry, China is by far the most promising emerging market and is set to be the biggest one in the world by value. But the country’s regulations and healthcare system present problems for an industry looking to increase use of its high cost cancer medicines.
There are two main obstacles: China’s healthcare insurance system doesn’t currently pay for medicines – so patients and their families must foot the bill – but most of China’s citizens cannot afford high cost cancer drugs.
Secondly, China doesn’t allow foreign firms to offer health insurance to its citizens, so this avenue is also closed.
China does, however, allow reinsurance, so Roche seizing this opportunity has teamed up with reinsurance giants Swiss Re.
Roche and Swiss Re began trying to convince Chinese insurers to offer coverage for cancer treatment and drugs, with the idea of helping Chinese firms lessen the risk of covering cancer patients.
Roche provides the Chinese insurers and Swiss Re with statistical data on various types of cancer, including how treatable they are. Swiss Re then calculate the risk and cost of treatment, and design and price policies for insurers and provide reinsurance, so local firms do not assume the full risk.
The programme took a great deal of preparation, but Roche’s chief executive Severin Schwan told Bloomberg Businessweek that six million people have now been enrolled, with plans for many more.
Swiss Re expects to bring in 10 million clients this year, with enrolment expected to rise by a further 20% in 2013.
Roche and Swiss Re are working with five Chinese insurers and are in talks with China Life Insurance, the nation’s biggest insurer. China Life Insurance is expected to join the programme in early 2013, with the goal of having nearly 1% of China’s population, or just under 12 million people, enrolled by the year-end.
A Roche spokesperson says the company has no financial arrangement with Swiss Re to share in revenues from the insurance policies. Roche says it is investing in the programme ‘free of any charge’ – although of course the pharma firms stands to benefit when its oncology drugs are used.
The success of the scheme means the companies may now offer similar policies in Thailand and Indonesia.
Susie Lunt
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