6 September 2021

Vietnam

Sumitomo Corporation (SC) invested in Insmart Joint Stock Company (hereinafter “Insmart”), the largest TPA (Third-Party Administrator) service company in Vietnam, expanding into the managed care business.

TPA service companies specialise in the management and administration of medical benefits for corporate employees or individuals insured through insurance companies. In addition, their service extends to screening medical care billing details ensuring that treatment/prescriptions and hospital stays/visits are appropriate, and providing appropriate information on medical institutions. In recent years, with medical demand brought on by rapid population and economic growth, there is a growing need for TPA service companies that keep medical costs down and make more advanced healthcare services available.

With an increase in market share of 60%, Insmart is the largest player in the Vietnamese managed care industry, which continues to grow on the back of the country’s growing healthcare market and the needs of corporations and private-sector medical insurance companies to keep their medical costs down. The company leverages its strengths, such as their comprehensive IT systems, robust network with medical institutions both locally and overseas, and the provision of high-quality services through 24-hour call centers, to support Vietnam’s healthcare system with a focus on the private-sector medical insurance market, which is currently growing at a rate of 20% annually.

In 2019, SC invested in PM Care and Health Connect Holdings, both major TPA service companies in Malaysia, and has accumulated expertise in the managed care business. Through the investment in Insmart, we aim to advance the managed care business by promoting digital transformation (hereinafter “DX”), which includes streamlining operations on processing medical bills and introducing online medical care and pharmaceutical services.

Managed Care Business Overview