Kolkata: Health insurance would be the second largest segment after motor insurance in the total general insurance business in the country in two years, B. Chakrabarti, Chairman and Managing Director, The New India Assurance Company Ltd, said here on Saturday.
Out of a total premium income of Rs 6,200 crore, the premium income from health insurance products of the public sector general insurance company currently stands at Rs 1,200 crore (19.35 per cent), he said. Its premium income from motor insurance is currently 40 per cent of total business, followed by property insurance and other segments.
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Addressing the Health Economic Summit organised by the Bengal Chamber of Commerce, Chakrabarti said, “At the current 30 per cent CAGR by the industry, my estimate is that the health insurance segment cannot remain unprofitable indefinitely and in two years time it would be second to motor insurance in size.”
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He said this while admitting that for the industry as a whole, health insurance is currently a loss-making entity.
“We are only looking to earn normal profits from health insurance as competition will naturally curb abnormal profits,” he said.
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Health insurance
Chakrabarti also pointed out the need to diversify health insurance products. “We need to move from generic products to need-based products for specific diseases, different lifestyle diseases, rural specific products, health saving covers, health pension covers, etc,” he said.
New India Assurance is also mulling the launch of a few such products in future, he added.
He also pointed out the need to form a regulatory body to facilitate standardisation of health services by hospitals and other health providers.
“Cost of medical services in hospitals is nearly 20 per cent more in cases of cashless facility, which indicates a structural problem and lack of uniformity,” he said.
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The standardisation in portability of insurance products is welcome for easy switching of renewal policies to another company, he said while pointing out that such standardisation in product would however narrow down options for customers.
