Brazil To Permit Foreign Investment In Health Insurance

Brazil's health insurance market is to be opened to foreign capital in order to increase competition in the sector and attempt to reduce health plan prices. According to the journal Gazeta Mercantil, medical companies are accused of boosting prices by up to 40% while inflation has risen by the relatively smaller amount of 20%, the government announced last month.

The government is aiming to provoke competition between health insurance and health plan companies, and to increase insurance market share. Last year, health insurance firms made 1.15 billion real ($1.14 billion) in premiums. The measure will also allow for more participation of foreign capital in other areas of insurance, says Marcio Coriolano, head of the private insurance superintendence, Susep.