Friday, January 20, 2012

Cigna’s new CEO lays out strategic plans

Tagged with: , , ,
Monday, January 25, 2010, 16:35
This news item was posted in Children's Health category and has 0 Comments so far.

Cigna’s new chief executive lives hundreds of miles from the insurer’s Philadelphia headquarters, but David M. Cordani promises no change in the corporate focus.

“I’ll be splitting my time between Connecticut and Philadelphia when I’m in the office,” said Cordani, 43, who had been Cigna’s chief operating officer. Cordani officially took over yesterday from retiring chief executive H. Edward Hanway, who lives in Rose Valley, an upscale Delaware County suburb.

Cordani, his wife and two children live near the Bloomfield, Conn., home base for Cigna Corp.’s largest business: health insurance.

It means a lot of time on the road for Cordani.

Last year, he logged many days in Washington, lobbying Congress over the future of nation’s health-care system. Cordani, who serves on the board of the insurance industry’s trade association, and his other insurance brethren seem to have successfully staved off a government-managed health-care plan, at least for now.

So far, he said, the legislation “is heavy on access. There is a lot of expansion. But it is lighter than it needs to be on the quality of care and the sustainability of costs.”

Whatever happens in Washington, Cordani thinks his company will be able to draw on its experiences abroad to help it cope with changes. Cigna’s international insurance business accounts for 10 percent of the company’s revenues. Its Asian business is its fastest growing.

For example, if the U.S. moves more toward something resembling government-managed medicine, Cigna can look at its product offerings in China, where it sells insurance to individuals who want to supplement and upgrade government-provided care.

“In China, the government supplies basic access to health care,” Cordani said. Hospital patients end up in wards with eight to 12 beds, he said.

Cigna’s Chinese subscribers purchase policies that give them private hospital rooms and more attention from health specialists. Mostly, he said, Cigna sells individual policies, but some Chinese employers are buying the policies to use for recruitment and retention.

“Frequently,” he said, “you might look at leveraging: How do you take what works in the U.S. and take it elsewhere? But for us, it goes both ways.”

Cigna’s experience in selling individual policies in Asia can help it market similar policies here – a plus if the legislation, as expected, brings millions of new customers who are not obtaining insurance through their companies.

Cigna needs that kind of expertise, because its strength now lies in selling health insurance to large and midsize employers, Cordani said. Even so, Cigna has been moving into the individual market in New York City, Florida, and Texas, among other places.

Looking ahead, Cordani said, Cigna might be in the market to acquire health-plan capabilities with access to new insurance products and markets. Other possible acquisition targets are companies that provide health-care services, including on-site clinics at workplaces.

“We see the industry as a consolidating industry,” Cordani said.

Quoting & Saving just got easier…EasyToInsureME Health Insurance Quotes… Quote all carriers in seconds

Cigna health insurance

You can leave a response, or trackback from your own site.

Leave a Reply