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Religare Health Insurance hopes to break-even in the fifth year of its operations and is at present focusing on sound underwriting and customer service, according to a top official.
The company, which started its operations around a year back, is the fourth stand-alone health insurer in the country.
"We are not chasing the topline, rather focusing on sound underwriting of risks and customer service to build up the brand as a new player. As far as break-even is concerned, we should be there in the fifth year of operations," Religare Health Insurance Managing Director and Chief Executive Anuj Gulati told PTI over the weekend.
Insurance underwriters evaluate the risk and exposure of business from potential clients.
Gulati said as the topline grows to around Rs 700-800 crore, the operations would turn profitable.
The break-even point (BEP) is when expenses and revenue are equal.
Religare Health Insurance is promoted by financial services group Religare Enterprises and two public sector banks - Union Bank and Corporation Bank.
As per sectoral regulator Irda, the private health insurer has a gross written premium (GWP) of around Rs 62 crore during the April-July period of the financial year.
"As a new entrant, we are building up a portfolio with a focus on underwriting risks," Gulati said, adding that the company has also started bidding for government-sponsored schemes.
Asked about whether its products are compliant with the new IRDA guidelines, Gulati answered in the affirmative.
Health insurance is one of the growth spots for the industry with most of the players reporting high double-digit growth in recent years.
