Slide 1

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 2

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 3

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 4

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 5

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 6

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 7

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 8

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 9

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 10

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 11

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 12

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 13

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 14

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 15

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 16

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 17

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 18

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 19

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 20

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 21

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 22

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 23

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 24

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 25

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 26

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 27

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 28

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 29

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 30

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 31

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 32

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 33

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com


Slide 34

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
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

The Background

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.

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.

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?

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.

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;

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.

The Rule

Necessity is the mother of all inventions
The Discovery

Skepticism mothers some
The Exception

Offsurance

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.

Value Health

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.

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:

1.

No major paradigm shift in healthcare can take place unless
“payers” (health insurance companies, employers) are
involved.

2.

No new industry can support exponential growth unless all
the stake holders involved are engaged.

Offshore

Home
Reinsurer

4
3Insurer

Home
Caregiver

2

5

Offsurer

Travel /
Hospitality

6

OFFSURANCE

Offshore
Caregiver

Patient

7

1

8
Residual
Insurer

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

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

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

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.

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.

Insured

Uninsured

$1.2 Trillion

$115 Bllion

Offsurance

Offsurance

• Corporate Model
• UK headquarters, marketing US & R&D in Dubai;
• Hiring industry insiders.

Reduced Premium

• 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.

Value Health Overseas

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:
1. Billion Plus Clients (BPCs): 60 biggest
Companies each with over a $1 Billion in
healthcare spending;
2. Other Big Corporations (OBCs employ 2.5K
to 10K each)
3. Small & Medium Size (SMEs employ 1-2.5K
each)
4. The Uninsured: 47 Million

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

4. India (negotiations ongoing)
5. South East Asia

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.

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

More Offsurance Winners
Offshore Hospitals:

Winning need not be at the expense
Increased & steady patient inflow;
No facilitation commission;
of defeating others
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.

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

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

Financials - 2
Projected Income & Expenses 2010 thru 2015
Particulars

2010

2011

2012

2013

2014

2015

TOTAL

Summarized Revenue Streams (in US $ - millions)
USA

0.75

6.33

16.69

28.28

39.32

53.86

145.23

Europe - HQ

0.50

2.51

10.81

18.41

26.27

36.42

94.93

MENA

0.93

1.89

2.96

4.04

5.43

15.49

South East Asia

3.01

6.51

10.45

14.46

19.66

54.35

India

0.13

1.51

3.26

5.23

7.23

9.83

27.18

Gross Revenue

1.38

14.29

39.16

65.32

91.32

125.21

336.68

Direct & Indirect Expenses

1.87

6.69

8.17

9.89

12.23

38.86

77.71

Net Revenue

0.50

7.60

30.99

55.43

79.10

86.35

258.97

Valuation & ROI
ROI & NPV of OFFSURANCE, estimated using DCF + Multiplier Methodology
Investment value to build Offsurance assets

Exit Year Exit Year Exit Year Exit Year Exit Year
2012
2013
2014
2015
2016

Projected Value (million $)To Time Of Exit (total sales at exit year x3) ◙

42.9

117.5

196

274

375.6

Investors’ participation in the equity at 10% with $2.0 million

4.3

11.7

19.6

27.4

37.6

ROI as multiple of $2.0 million investment at entry

2.1

5.9

9.8

13.7

18.8

Net Present Value Of Offsurance Knowledge Asset Using DCF Method Is Estimated At $33Million.
Please note that this valuation is not a basis for soliciting equity investment from seed investors. It is only an estimate of the growth
potential of the business. Fair value of equity will be substantially discounted and arrived at by mutual discussions.

◙ 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.

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.

Skype: 5% share in $44 billion
market, sold for $4.1 billion
Facebook:22% share in $3.3
billion market, value: $15 billion

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

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

Contact

Offsurance Limited,
31 Huntly Gardens,
West Craigs,
Glasgow, G72 0GW,
Scotland, UK
Website: www.offsurance.com