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Presented by: Dr Fazal Raheman MD Offsurance , Ltd., Glasgow, UK, &

Technology that engages and benefits all stakeholders of Medical Toursim. Presented by: Dr Fazal Raheman MD Offsurance , Ltd., Glasgow, UK, & MRI Limited, East Sussex, UK & Dubai, UAE. The Scope & Presentation Landscape.

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Presented by: Dr Fazal Raheman MD Offsurance , Ltd., Glasgow, UK, &

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  1. Technology that engages and benefits all stakeholders of Medical Toursim Presented by: Dr FazalRaheman MD Offsurance, Ltd., Glasgow, UK, & MRI Limited, East Sussex, UK & Dubai, UAE

  2. The Scope & Presentation Landscape Medical Tourism is the fastest growing segment of global healthcare industry projected to be worth $100 Billion by 2012. However, because it lacks a computerized global distribution system its growth is restricted. Offsurance is a unique patent pending technology that addresses this huge unmet need. The Background The Innovation The Opportunities Conclusion

  3. The Background

  4. US Healthcare Industry • Mind-boggling health costs: • $2.4 TRILLION spent in 2007; • $4.3 TRILLION in 2017; • 17 % of the nation’s GDP. • Consequences: • 25% of all housing problems; • 50% of all bankruptcies; • 1.5 million foreclosures / year; • One bankruptcy / 30 seconds.

  5. US Health Insurance • 47 million without health insurance; • 20% hi-income uninsured by choice; • No Insurance company covers MT; • Average annual premium for family coverage is $12,700; • Average individual premium $4,700; • About 100 Insurance Plans with total revenues of around $1.2 TRILLION; • BCBS franchise largest with 103 million members ($400 billion revenues); • Many employers cannot afford.

  6. Healthcare Reforms: The Reality Check • A PwC analysis shows reforms will actually increase the cost of health insurance from current $12,3000 to $25,900 in 2019; • Without reforms the increase will be only $21,900; • About 24 million will still remain uninsured in 2019; • Eligibility & other reforms will be delayed to 2014; • Increase in health insurance premium will take effect prior to 2014; • Obama Healthcare Reform Is Not About Changing The Expensive Sickcare System, But About Finding Money To Pay For It. • Reforms CANNOT ignore the Globalization of Healthcare?

  7. Medical Tourism (MT) • Fastest growing segment of healthcare; • $100BILLION industry by 2012; • 16 million Americans will travel for MT by year 2017; • Almost half of US population will engage in MT by 2017; • Unstructured & unregulated; • Patients on their own; • Informal patient-hospital communication channels; • No insurance cover for MT at present; • Top MT destinations: Thailand, India, Singapore, Malaysia, etc.

  8. MT Impact: The Deloitte Report 2008 • 39% Americans willing to travel overseas for elective procedures; • 16 million Americans will travel for treatment abroad by 2017; • Savings of $200 - $520 Billion to US Healthcare; • About 35 million travel-eligible elective procedures performed annually in US; • 45.7% US population projected to participate in MT by 2017;

  9. US Population & MT • Deloitte Projections: • 16 Million MT travel in 2017 by Americans; • A cost saving between $200 -$520 Billion. What proportion of US Population? • 45 million inpatient procedures in US (CDC, 2005); • Travel-eligible elective procedures estimated at 30-35 million; • About 11-12% of the total US population; • US population of 330 million by 2017; • 45.7% of US population will engage in MT; • More American adults will get elective procedures overseas than at home.

  10. The Rule Necessity is the mother of all inventions The Discovery Skepticism mothers some The Exception Offsurance

  11. Value Health Offsurance What is Offsurance? • Global Distribution System that engages all stakeholders involved in Medical Tourism; • Offsurance is not just Technological Innovation, it Is Business, Servicing, & Marketing Model Innovation Why Offsurance? • MT is a rapidly growing largely unstructured industry; • Lack of formal channels between consumers and care providers; • Insurance plans don’t cover MT, although some trials are currently on; • Without engaging all the stakeholders in a seamless Global Distribution System the predicted growth in MT is not possible.

  12. Global Distribution System • Offsurance: World’s first GDS for globalizing healthcare; • MT: A new industry with diverse stakeholders involving complex business processes; • Seamlessly integrates complex business processes of diverse stakeholders; • A single seamless platform implementing all the different components of MT; • Unlike the traditional GDS • Offsurance involves multi-industry service providers; • Interfaces with the user continuously and not just for travel.

  13. MT – A Paradigm Shift The Offsurance product design and business model takes into account the following maxims that the promoters have learned from their experience with the US healthcare industry: No major paradigm shift in healthcare can take place unless “payers” (health insurance companies, employers) are involved. No new industry can support exponential growth unless all the stake holders involved are engaged.

  14. Offshore Home Reinsurer 4 Insurer Offsurer 3 5 Home Caregiver Travel / Hospitality OFFSURANCE 6 2 Patient Offshore Caregiver 7 1 Residual Insurer 8

  15. Offsurance: The Intellectual Property • Patentability over the prior art; • 902 issued US patents with search terms “Health Insurance” • None enable an IT-enabled GDS platform for MT • Enforceability against infringers; • B2B service • Corporate buyers in US/Europe • Valuation of IP; • Based on 5 year revenue projections • DCF Method • SAFE-IP; • Rated Five Star

  16. Offsurance Development Status • Alpha front end uploaded on www.alfa.offsurance.com • Back end server development goes on • Password to all the modules available for real time online review of the modules • Prototype of Mobile Client ready for testing on most mobile phones

  17. Offsurance Ltd. – The Business • Corporate Mission • The mission of the Company is to pioneer the transition of Medical Tourism to Global Healthcare and streamline the adaption to a radical change in the way medicine will be practiced in the times to come, and in the process deliver to the world its first Global Delivery System (GDS) for global healthcare • Company’s Vision • Offsurance aims to be the leader in global healthcare market place. In order to achieve fast paced penetration into the market, the Company’s initial focus is the 60 biggest employers of the US with more than 100,000 employees each. Break-even achievable on signing up with just one such corporation

  18. Offsurance Ltd. – The Business • History and Development • Incorporated in Sep 2009, in Scotland, UK and acquired Offsurance, Inc., a Delaware, US Corporation, that owns the Offsurance technology • To save cost and time the Company pays for the actual ongoing R&D at the development team’s current location • Presence in Europe, ME and India • Promoters and Organizers of the Company • Dr Fazal Raheman, MD – Director, Chairman & Chief Technology Officer: Physician, scientist, inventor and entrepreneur; Spent his professional career in various healthcare and technology sectors of US economy intersecting the entire diversity of Hi-Tech product and business development • Mr Amir Bavi – Director & CEO: Insurance industry veteran and entrepreneur; Worked with the top three Lloyd’s of London broker firms • Dr Rakesh Chandola, Ph D, MBA – Director & Managing Director: Held senior management positions in healthcare industry in India, Canada and ME • Ranbir Singh – Director & Sr VP: Dubai based engineering professional with 30 years of diverse experience that spans from construction projects to healthcare and IT ventures in India, US and UAE.

  19. The Offsurance Strategy • Business Model: B2B • Signing up hospitals in India, Thailand, Singapore, UAE etc.; • Partnering US insurance firms; • Signing up US corporations; • Offerings to global insurance & reinsurance firms. • Corporate Model • UK headquarters, marketing US & R&D in Dubai; • Hiring industry insiders. • Financial Model • 1%/beneficiary fee from Insurance companies; • Per patient fee from hospitals @ 2.5% of gross. • Marketing Model • Cross-Cluster Servicing & Marketing Infrastructure; • Master Franchises in 5 regions. Insured $1.2 Trillion Uninsured $115 Bllion Offsurance Offsurance ReducedPremium ValueHealthOverseas

  20. Business Model: Target Market -US • Healthcare in US is private; • Mostly sponsored by employers; • US Companies employ 162 Million employees; • Offsurance identifies 4 market segments: • Billion Plus Clients (BPCs): 60 biggest Companies each with over a $1 Billion in healthcare spending; • Other Big Corporations (OBCsemploy 2.5K to 10K each) • Small & Medium Size (SMEs employ 1-2.5K each) • The Uninsured: 47 Million

  21. Marketing Model • Marketing Innovation: Cross-Cluster Servicing & Marketing Infrastructure (CCSMI); • Master Franchise: • Americas (under agreement with KFM Group, UK) • Europe (under agreement with Premier Health, Germany) • MENA (negotiations ongoing) • India (negotiations ongoing) • South East Asia

  22. Market Segment Analysis 1. BPC (Billion Plus Client) Facts: • 60 BPCs spend estimated $149 Billion for insuring 3.4 Million employees; • Average number of employees per BPC is 223,370; • Average estimated health insurance cost per BPC is $2.48 Billion; • Offsurance may save upto 50% on health insurance cost 2. OBC (Other Big Corporations) Facts: • 3474 OBCs employing 29.5 Million; • Average 8478 employees / OBC • Estimated health insurance cost is $47 Million/OBC 3. Small & Medium Size (SMEs employ 1-2.5 each) • Over 5 million SMEs employ 72 Million 4. The Uninsured • 70% of 47 Million above poverty line; • Offsurance attracts them to health insurance; • Estimated a potential market worth $115 Billion.

  23. Offsurance Winners • US Employers: • Choice of plans; • Single convenient platform for all health related needs of the company; • Health insurance budget reduced to half; • Integrated inpatient/outpatient services via home & offshore caregivers. • Underwriters: • Insurers: 100 US insurance providers; • Lower premiums, improved margins; • Attract more uninsured; • New revenue streams; • Lower administrative costs; • Volume discounts from hospitals; • Favorable “Loss Ratio” & High ROI. • Offsurers & Brokers • New product offering; • New revenue streams. • MT Facilitators: • User friendly interface enabling high efficiency resulting in larger business volumes. Winning need not be at the expense of defeating others

  24. Winning need not be at the expense of defeating others More Offsurance Winners • Offshore Hospitals: • Increased & steady patient inflow; • No facilitation commission; • Lower marketing expense; • Automatic payment credited to hospital account; • Seamless Doctor-Patient interaction via Offsurance platform; • Better patient experience & higher customer satisfaction. • Patients: • Affordable health insurance to avoid bankruptcies & home foreclosures; • Lower payments/copayments for quality care; • 24/7 online help/consultation; • Choice of exotic destinations worldwide; • No uncertainties related to offshore care; • Single platform for all patient needs; • Built-in follow up / aftercare.

  25. Competition • No healthcare GDS at the present time; • First in $100 billion MT; • Formidable leadership if the patent granted; • Many will jump in the MT band wagon; • First-to-market advantage; • Patent protection. Offsurance is poised for a formidable leadership in the $100 BILLION Medical Tourism industry

  26. Financials - 1 • MT Market: $60 Billion in 2007; $160 Billion in 5 years; • Revenue Model; • 1% of MT insurance claims; • 2.5% of MT hospital revenues; • Assumptions • 0.44 % penetration of total market in 5 years; • Revenue earned in 2010 is only through sale of Master Franchises • Master Franchises start operations in 3rd quarter 2010

  27. Financials - 2 Projected Income & Expenses 2010 thru 2015

  28. Valuation & ROI ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology ◙ References For Knowledge Asset Valuation Methodology 1. SHAPIRO, C, VARIAN, H,R; 2003, The information Economy, em Intangible Assets, Values, Measures and Risks, New York, NY, Oxford University Press. 2. TEECE, D, J, 2000, Managing Intellectual Capital – Organizational, Strategic and Policy Dimensions, Oxford University Press, N.Y. 3. LEV, B, 2001 – Intangibles: Management, measurement, and reporting ,., Brookings Institution Press, Washington, D.C 4. LEV, B, 2002, The reform of corporate reporting and auditing, Testimony of Baruch Lev before the House of Representatives Committee on Energy and Commerce, www.sec.gov, - February 6, 2002. 5. COPELAND, T, E; and. KEENAN, P, T; 1998, How much is flexibility worth? THE McKINSEY QUARTERLY, 1998 number 2, pg 2.

  29. Skype: 5% share in $44 billion market, sold for $4.1 billion Facebook:22% share in $3.3 billion market, value: $15 billion Exit ROI & Growth Potential • Short term exit: • Via private equity; • Corporate alliances; • Medium term: • Via private equity; • Buyout ; • IPO; • Long term: • IPO; • Buyout; • Return on investment: • 5th year value over 28 times; • 2nd year over 3 times; • Growth Potential • First player in $100billion industry; • Huge potential for exponential growth.

  30. The Risks & The Cushion • Usual Hi-Tech Risks: • Long development time & cost; • Long sale cycle; • Too much ahead of time; • Delays may be adverse; • IP protection & exclusivity; • Marketability. • The Offsurance Cushion: • Low development time & cost; • Moderate to short B2B sale cycle; • Perfect timing & high unmet need; • Strong IP protection & exclusivity; • SAFE-IP: Certainty in Creativity

  31. Conclusion • Huge potential in a major recession-proof industry; • Very high NPV & ROI; • Opportunity to monopolize a $100 Billion market; • Low investment; • SAFE-IP secured investment; • Early market entry is the key; • Time is of essence; • Healthcare is Recession-proof & Offsurance Secures It

  32. Contact Offsurance Limited, 31 Huntly Gardens, West Craigs, Glasgow, G72 0GW, Scotland, UKWebsite: www.offsurance.com

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