ICICI Lombard focuses on product innovation to increase retail share

ICICI Lombard General Insurance on Thursday said it is focusing on product innovation to increase its retail share in the health insurance segment.

The private insurer reported a retail health insurance market share of 2.9 per cent, while its group insurance share stood at 11.4 per cent.

"We are working on increasing our retail share, and in this endeavour, we are constantly innovating our products. Our new offering, the Elevate Health policy, which includes several industry-first features and uses AI for product advice, is expected to drive our retail sales," ICICI Lombard VP (Health Agency) Amrish Sawe said.

He also noted that the current retail share of the health insurance industry is 39 per cent, but by 2030-31, this mix is expected to rise to 46 per cent.

 

However, Sawe did not disclose the retail share of premiums within the company's health portfolio.

In FY'24, the gross written premium for the health industry was Rs 1,07,800 crore, and this is projected to nearly triple to Rs 2,94,200 crore by FY'31, Sawe stated.

When asked about the reasons behind the increase in the retail share of the industry, Sawe cited a higher level of awareness about the necessity of health insurance and the increased coverage levels among existing policyholders will be the key drivers.

Sawe said the new policy offering "Infinite Claim Amount" option is industry first and it allows policyholders to make unlimited claims for hospitalisation expenses, irrespective of the base sum insured, if they opt for this particular add-on rider.

He mentioned that the cost of the infinite claim top-up is 10-12 per cent of the base premium. Additionally, the policy waives pre-existing diseases such as asthma, diabetes, hypertension, hyperlipidemia, and obesity with the "Humpstart" add-on.

Sawe added that ICICI Lombard is offering a host of personalised add-ons and is utilizing AI to tailor policies based on individual needs.

He said that in Q1FY'25, the company's gross direct premium income (GDPI) grew by 20.4 per cent year-on-year to Rs 7,688 crore, driven by strong growth in the motor and health segments, while the industry expanded by 13 per cent.