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Global reinsurer Swiss Re is looking to partner with the central and state governments in India in the state health insurance scheme. Robert Burr, Head of Life & Health Asia Managing Director of Swiss Re said that the health insurance gap in Asia is estimated to be $197 billion (Rs 12.2 trillion) is the health insurance gap in Asia.
He said that Swiss Re is exploring opportunities with the state schemes. "Insurance should provide protection. It is a social obligation of governments to provide healthcare to their citizens, around the world. We would look at mass market healthcare schemes and emerging middle class who require better quality of healthcare. There should be more partnerships between Swiss Re, governments, pharmaceutical companies and the insurers. State governments are also looking for collaboration and we would like to partner with them," said Burr.
For Swiss Re, Japan is the largest market in total in Asia, and fastest growing markets include China, Indonesia and India. Burr said that this would mean that there would be 30 to 40 more hires in next couple of years in India.
India has Rashtriya Swasthya Bima Yojana (RSBY), as a government sponsored health insurance scheme. It was launched by Ministry of Labour and Employment, Government of India to provide health insurance coverage for Below Poverty Line (BPL) families. The objective of Rashtriya Swasthya Bima Yojana is to provide protection to BPL households.
Beneficiaries under Rashtriya Swasthya Bima Yojana are entitled to hospitalization coverage up to Rs 30,000. Beneficiaries need to pay only Rs 30 as registration fee while Central and State Government pays the premium to the insurer selected by the State Government on the basis of a competitive bidding.
On the reinsurance premium rates, he explained that at the moment, on the non-life side, in property and casualty segments, there is lot of capacity so rates are flat or slightly down. On the medical side too, Burr added that there are companies who try and under-cut. "In the reinsurance business, we can compete on price or on value. We don't compete on price," he said.
With respect to the areas of growth, he said that Swiss Re will expand in the insurance segments of life, health, agriculture, natural catastrophe and infrastructure. "We are interested in the medical insurance space and in long-term risks. Here in India, the tenure of products is 3 to 5 years and is short-term in nature. We like products that have duration of 10 years and more," he said.
Swiss Re is also looking forward to getting a reinsurance branch license in India, since the insurance regulations do not permit them to do so presently. Robert Burr said that they are committed to investing in India and added that de-regulation of the reinsurance market would enable them to hire more people.
"We invest in countries to stay and don't hit and run. The regulator has his concerns, with respect to flight of capital. First, let the capital in and then regulate it. If we get a branch license, people can come here and we can increase a bigger pie for everyone. It is good for the industry," he said.
India, which is one of the fastest growing markets for Swiss Re in Asia, contributed 10% of profits for their life and health business in Asia in this year.
