WPMI LLC announced the opening of its first business entity in China yesterday and plans to set up its own health insurance joint venture as soon as 2011.
WPMI announced the opening of its Shanghai office (Kangzhong in Chinese) yesterday as the company plans to join in China's growing health insurance market.
Kangzhong will offer consultation and other services to Chinese insurance companies including claims processing, risk management and fraud detection initially. The company also plans to offer membership services and billing later.
WPMI is a joint venture between WellPoint Inc, Premera Blue Cross, the Combined Benefits Management and Blue Cross of Idaho Health Services Inc.
Kangzhong will help its first client in China, Sinolife Insurance, to make two products.
Third party services are not the only business targets WPMI has intended for China.
The company plans to establish its health insurance company in China by teaming with a strategic partner, said John P. Domeika, president and chief executive officer of WPMI. The joint venture is expected to be set up as early as 2011 as it takes time to gain regulatory approval. The company is also looking to cooperate with Chinese hospitals.
China is experiencing an increasing demand for financial protection products and the company believes this is the right time to enter the market.