Swiss Re to set up Chinese health consulting arm

BEIJING, April 2 (Reuters) - Swiss Re (RUKN.VX) has won approval to establish a health consulting company in China, the world's largest reinsurer said on Wednesday.

Beijing Prestige Health Consulting Service Co Ltd will provide comprehensive third-party administrator and related consulting services to hospitals, insurers, policyholders and employers, Swiss Re said.

The wholly owned firm plans to open for business later this year.

A recent Swiss Re study estimated that China spent more than 1,000 billion yuan ($143 billion) on healthcare in 2007, 52 percent of which was directly paid by households.

The study found that commercial medical insurance covered less than 6 percent of these costs, implying a market potential of 489 billion yuan that Prestige Health will help insurers to tap. ($1=7.011 Yuan) (Reporting by Eadie Chen; Editing by Alan Wheatley)