This is a change of strategy for the company, which only used to sell corporate packages until now. MedLife posted almost EUR50 million in revenue last year.
“[Insurance] is in high demand. We opened hospitals and MedLife clients want insurance. A year ago we only had one hospital, now we have six,” Mihai Marcu, MedLife chairman, told ZF in an interview.
The company, whose shareholders also include International Finance Corporation, the investment arm of World Bank, and investment fund SGAM, had previously launched a broker, AsiLife in 2007, whose business volume was low, though. According to the data supplied, its turnover amounted to EUR200,000 a year.
“There is no more AsiLife, but MedLife Broker Asigurare Reasigurare (…). MedLife is working closely with two or three large Romanian and foreign insurers to create products for the local market. It’s about products that will be sold by MedLife Broker Asigurare Reasigurare,” Marcu said.
Medical service providers have built their business around subscriptions (corporate or individual) or around payments in cash from patients. The increase in the number of private hospitals on the market brought along demand for insurance because subscriptions did not cover hospitalization costs.
Other than the insurance business, MedLife continues expansion. Marcu said his company is still interested in acquisitions, as well as in opening new clinics and hospitals.
(English version by Loredana Fratila-Cristescu)