 "Anuj Gulati")
Stand-alone health insurer Religare Health Insurance is looking to bring out a separate suite of products for senior citizens in its portfolio. Anuj Gulati, managing director and CEO of Religare Health, talks to M Saraswathy. Edited excerpts:
Religare currently has health, critical illness and travel medical insurance as a part of its portfolio. What new segment are you looking to get into?
We are young; we have only been in business for three years. Apart from the growth in business every year, the word of mouth has also been strong for the company, At present, we offer health insurance, critical illness, personal accident, top-up coverage, international travel insurance and maternity for retail, along with group health and group personal accident insurance for corporates.
We’re now looking to bring out a suite of products for senior citizens in the area of health. At present, we’re working on a proposition to offer products for this category, including covers for pre-existing ailments.
Competition seems to have intensified in the health insurance space, with many life insurers getting more active in this space. How are you dealing with this?
Health insurance is a Rs 22,000-crore business and there is opportunity for everyone. About Rs 3,500 crore was added to this space in the last financial year. We now have life insurers also playing an active role in this space. As standalone health insurers, we are poised to offer a higher degree of specialisation in products and services. While there is room for many players in the market, being a specialist helps.
There is an increase in premium collection, but losses are on the rise...
Religare Health is still a young company and is on its growth path. The losses are part of our strategy; in a new insurer’s growth phase, it is a part of the business. However, the quality of our services has improved and there is growth in the team size as well in our partners.
Is break-even on the anvil?
Under our plan, we plan to break even in the sixth year. From that year, we would be able to self-sustain the business. We are moving strictly according to this strategy and hope to achieve break-even under this plan.
Group health pricing has driven away a lot of insurers from this space. Has the situation improved?
Group health insurance continues to be price-led. However, we are looking at the quality of the business and corporates to do business. We’re also offering specialised services to employers according to their needs including running health check-ups, vaccinations and health-related family needs. This helps us engage with the employer better. Our plan is to have a deep focus on a certain category of customers.
There have been complaints from policyholders going in for hospitalisation that some hospitals over-charge...
We have a technology-based quote process, which is quicker and more transparent. Our grievance rate has also gone down since we monitor it regularly.
It is being observed that the out-patient coverage process has also started in the sector and newer segments are being added to the hospitalisation space. While hospitals over-charging was a case some time ago, now there is a change in the situation with hospitals actually giving discounts for those with health insurance. Going forward, this will be the norm.
Now that the Insurance Act has come into effect, are you looking for a foreign partner?
We do not have any immediate plans as of now. If we see a need in the future, and if we find a good match that fits with our business values, we may look at it.
