By entering a new business area, GRAWE is making people sit up and take notice: from April, the company will shake up the market for supplementary health insurance as an additional provider. “With our new 'MyMed' line, we are responding to the growing demand for personalized healthcare,” says General Director Klaus Scheitkel. “Population growth, the market environment and the significantly increased need to protect one's own health are decisive factors,” says Deputy General Director Gernot Reiter, who will lead the new business area in the future.
Health offers for the home market
Of course, Scheitegel acknowledged, the decision comes at a “challenging time” with tough economic conditions. However, the associated healthcare offerings have proven successful among the group and now they want to offer this in the home market as well.
The new business area opens up an exciting market for the company: 3.4 million people – that's 38 percent of the population – already have private health insurance, and the trend is increasing. According to the insurance association's latest balance sheet (see right), Austria's health insurers paid out 2.5 billion euros in benefits last year (up 11.1 percent), compared with 2.8 billion euros in premium income (up 8.6 percent).
Reiter expects break-even, the threshold for profitability, in about seven years. “We envision 3,000 to 4,000 deals in the first year,” Reiter concludes.
