UK - Healthcare provider BUPA has set up a commercial management team to boost its presence in the group risk market.
BUPA believes consolidation within the sector and Swiss Life’s decision to exit the group risk market means there is “huge potential” to expand.
BUPA’s move – which follows a strategic review carried out with Watson Wyatt – has been bolstered by the recruitment of 11 former Swiss Life employees, including managing director Graham Clark who will be director of the expanded group risk division.
Clark will report to BUPA Health Assurance managing director Steve Flanagan, who said:
“BUPA has been operating in the group risk market for five years and we have plans to grow our business substantially.
“Recent changes, such as the decision by Swiss Life to withdraw from the sector, means there is huge potential in this market. During our research, we were encouraged by the number of brokers who stressed their support for BUPA making a positive move such as this.
“With Graham and his team joining us, we will be better placed to take advantage of the opportunities created by the changes in the market. The new team brings credibility and knowledge of the sector built up over years of success with Swiss Life.”
BUPA’s move comes after John Scott & Partners employee benefits director Dion Reynolds warned that industry consolidation was making it “very difficult” to select suitable group risk providers for clients.
However, Mercer Human Resource Consulting senior consultant John Matthews disagreed.
He said: “There’s no doubt the market has been consolidating, but there are still enough providers in the market for it to be competitive.
“BUPA have been in the group risk market for a few years, but it has taken on 11 people from Swiss Life with enough experience and expertise at senior level to make a really big push forward and expand the business.”
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