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Health insurance, which used to be dominated by general insurance companies, is now drawing a lot of attention from life insurance firms as well.
On an average, life insurers have two to three per cent of their business coming from health insurance in the retail segment. They now look to increase it to double digits.
“Life insurers, including Bharti AXA Life, are expanding in the health segment, since we have a wider retail reach than general insurance,” said Rajeev Kumar, chief and appointed actuary, Bharti AXA Life Insurance. He added that worldwide, health insurance had been a grey area between life and general insurance.
Launching new products to be on par with general insurers is a strategy adopted by life insurers. Bharti AXA Life Insurance, for example, recently introduced Hospi Cash Benefit Rider, which offers a fixed amount in case of hospitalisation or surgery. It has also launched Triple Health Insurance plan, a critical illness product, online for customers to purchase. The recently-passed new health insurance regulations, which clarified the critical illnesses to be covered and standardised definitions, have also prompted life insurers to turn their attention towards the health segment.
Anup Rau, CEO, Reliance Life Insurance said that after the passage of new health insurance norms, life insurers have intensified their health product launch activities. Health insurance as a segment has low penetration rates. According to Rau, health insurance penetration in India is as low as five per cent, with 85 per cent of the 1.4-billion population having no health cover.
Rau added Reliance Life Insurance is already into the pure health space and will continue to increase its presence in this segment. “We see health segment as an opportunity to serve all requirements of customers and their families in short, medium and long-term. At present, we have three health plans in our product basket. Reliance Life Insurance has plans to further strengthen its presence in the health insurance space,” he said. Looking at the huge scope of generating volumes from this segment, which is so under-penetrated, life insurers are expanding their health product portfolio.
G V Nageswara Rao, MD & CEO, IDBI Federal Life Insurance, said health as a segment has good scope for significant growth. The company would be expanding its product suite in this segment in the next financial year, he added.
Some life insurers such as Future Generali are waiting for further changes in the health regulations.
G N Agarwal, CEO of Future Generali India Life Insurance, said through the Life Insurance Council, the company has requested the regulator to simplify the complex norms for death cover and maturity benefit. “We want to expand into health segment and launch more products,” he said.
