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Munich Re: Obesity – A Challenge for Global Healthcare Systems
As obesity and type 2 diabetes are spreading at an alarming rate around the world, the traditional role of health insurers and reinsurers as mere risk carriers is no longer sufficient, a Senior Officer of Munich Re noted. The Group has started to develop sustainable solutions by integrating the whole value chain from risk assumption in primary insurance and reinsurance to risk management and healthcare services, Chief Medical Director of Munich Re, Achim Regenauer, explained.
The proportion of overweight and obese people in the population continues to increase in both industrial and emerging markets; particularly worrying is the rise in obesity among children. "Compared to today's obese adults, the coming generation will suffer 20 to 30 years longer from the detrimental effects of excess weight on their bodies, including associated health problems and diseases," Mr. Regenauer noted.
The rise in obesity in the United States and the United Kingdom was termed as equally alarming. For example; obesity increased in British men from 14% in 1994 to 24% in 2006, among women from 17% to 24% over the same period. Taking overweight into account as well, the particular figures in 2006 amount to 67% among men and 56% among women. According to a recent study by the University of Oxford, National Health Service (NHS) spending on obesity is predicted to triple in less than a decade, and total costs of obesity could be an extra $89.5 billion per year by 2050, it was pointed out.
Obesity places a major economic burden on healthcare systems, diabetes in particular is a main cost driver, Mr. Regenauer added. Based on data from the American Diabetes Association, the medical cost of diabetes in 2007 was $116 billion in the United States. "It is projected that the annual costs of diabetes could rise to $156 billion by 2010 and to $192 billion in 2020," the Munich Re officer continued.
This development was termed as one of four main growth drivers of the global health market next to demographic changes, medical improvements, and a constantly improving economic situation. These factors combined have been boosting the market volume of the global health market. OECD Health Data forecasts a global market volume of $8,393 billion for 2015 compared to a market volume of only $3,575 billion in 2000. The global healthcare market is expected to grow at around six per cent per year, faster than most other industries.
These market forces require specialization in order to manage the risks adequately and to sustain profitability, the Munich Re expert pointed out. Thus the traditional role of health insurers and reinsurers as mere risk carriers is no longer sufficient.
With the establishment of the business segment International Health, the Munich Re Group is combining the experience and expertise of Munich Re and DKV, the largest private health insurer in Europe. "Besides traditional reinsurance, we are now increasingly able to offer services along the whole value chain: from risk assumption in primary insurance and reinsurance to risk management services and healthcare services," the Head of Munich Re's HealthCare division, Peter Choueiri, emphasized. This sector International Health has over 3,500 staff at 25 locations and is active in over 40 countries. The segment has initially concentrated on a number of specific growth markets like Asia, the Middle East, North America and selected European markets. "Taking obesity as an example, we will demonstrate how we leverage our international experience and competence within the Munich Re Group in order to ensure optimum management of this health risk and its consequences for affected individuals and improve their quality of life," Mr. Choueiri added.
"We have identified the impairment to quality of life and the diseases associated with obesity, and are currently developing solutions for the international insurance industry," Head of Munich Re's Healthcare Management Services, Franz Benstetter, remarked. He pointed to how different Munich Re Group business models are applied around the globe to deal with obesity and demonstrated how case management, disease management and prevention programs are used as an integral part of Munich Re's business models.
It was revealed that in several Mediterranean and Middle East countries, Munich Re supports their clients via their MedNet subsidiaries with managed care instruments. With this integrative approach, patients are able to obtain optimal assistance in a complex healthcare environment. Mr. Benstetter explained how case management in particular is used to deal with severe health problems related to overweight and obesity. On the obesity subject Munich Re has structured these actions in offering disease management and prevention programs to reduce obesity and related chronic diseases:
Munich Re not only offers integrated care solutions like disease management programs, it was announced. It also provides reinsurance solutions for the outcome of these programs to increase the availability of these programs for a larger part of the population. Pilot projects have already started in the United States and Germany.
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