Insurance
companies, both life and non-life, are bullish on their plans of
making it big on the health insurance segment, which is one of the
fastest growing businesses for them, and have set a target of more
than trebling the business to Rs 65,000 crore by FY'20. Health
insurance is the fastest growing insurance product for insurers. Last
year, the industry did around Rs 18,000 crore and hopes to do Rs
20,000 crore business this fiscal, which should touch Rs 65,000 crore
by FY20, General Insurance (PSU) Association chairman G Srinivasan
told PTI. State-run New India Assurance, the largest player in the
health cover space, has already filed for a new product under health
insurance segment with the sectoral regulator Irda.
"We have already filed for a new product under health insurance segment with the Irda and we are waiting for the approval for launch. It's a top-up policy which provides cover beyond a level upto which the cover is being already being provided," Srinivasan, who is also the chairman and managing director of New India Assurance, said. He was speaking on the sidelines of an event organised by the National Insurance Academy in Mumbai. "The customers will be free to pay premium up to Rs 30 lakh a year under the proposed plan. One can have this top-up plan not only in case if one is our customer but those from outside can also buy this product," Srinivasan said. New India did a Rs 3,200-crore business in the health segment last year and this year it is eyeing Rs 3,600 crore. In the first half the company has already achieved Rs 1,800 crore of business, he added.
"We have already filed for a new product under health insurance segment with the Irda and we are waiting for the approval for launch. It's a top-up policy which provides cover beyond a level upto which the cover is being already being provided," Srinivasan, who is also the chairman and managing director of New India Assurance, said. He was speaking on the sidelines of an event organised by the National Insurance Academy in Mumbai. "The customers will be free to pay premium up to Rs 30 lakh a year under the proposed plan. One can have this top-up plan not only in case if one is our customer but those from outside can also buy this product," Srinivasan said. New India did a Rs 3,200-crore business in the health segment last year and this year it is eyeing Rs 3,600 crore. In the first half the company has already achieved Rs 1,800 crore of business, he added.
Private
sector general insurer Cholamandalam MS plans to do business of over
Rs 200 crore this fiscal in the category. "We are likely to see
Rs 210 crore business from health segment, while our total premium
may touch Rs 2,100 crore this fiscal," Cholamandalam MS General
Insurance managing director SS Gopala Rathnam said, adding the
company is looking at increasing the health insurance business to Rs
1,000 crore per annum over the next four years from now. For Tata AIG
General Insurance, the focus is on group insurance. "Even though
our focus continues to be on individual health insurance, we will go
for group cover if we are able to get the right premium," Tata
AIG General Insurance chief executive officer K K Mishra
said.
Reliance General Insurance is more focused on retail health insurance. "One fourth of our business comes from health insurance segment. Our focus will continue to be on retail health insurance," Reliance General Insurance chief executive Rakesh Jain said. Even life insurers are also there in the space and there is a clear-cut demarcation now. Health insurance products having maturity period of up to three years are being sold by general insurers, while life insurers are selling longer term products, Srinivasan said.
The health insurance market has emerged as a significant component of non-life insurance sector and experiences a significant growth because of huge potential of the market coupled with new products efficiency which insurance players are bringing in," Insurance Brokers Association president Sohanlal Kadel said.
Reliance General Insurance is more focused on retail health insurance. "One fourth of our business comes from health insurance segment. Our focus will continue to be on retail health insurance," Reliance General Insurance chief executive Rakesh Jain said. Even life insurers are also there in the space and there is a clear-cut demarcation now. Health insurance products having maturity period of up to three years are being sold by general insurers, while life insurers are selling longer term products, Srinivasan said.
The health insurance market has emerged as a significant component of non-life insurance sector and experiences a significant growth because of huge potential of the market coupled with new products efficiency which insurance players are bringing in," Insurance Brokers Association president Sohanlal Kadel said.
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